Penyao (IFC-39279)

Countries
  • China
Where the impacts of the investment may be experienced.
Specific Location
Zhoukou City in Henan Province, Yuanjiang City and Qiyang City in Hunan Province
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
PENYAO ENVIRONMENTAL PROTECTION CO.,LTD.
The holder of the loan, grant, or other investment.
Sectors
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 172.20 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 25, 2017

Disclosed by Bank Jun 16, 2017


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Project Description
The Project is to support Penyao EP to expand its water and WWT business via PPP, BOT and TOT models in areas that the Company has established good presence and relationship with local government via past BOT, EPC and BT projects, all outside first-tier cities. Proceeds from the proposed IFC investment will be used for three WWT projects and two bulk water supply projects in five counties in China, as well as to refinance some short-term debt thus helping the Company to rationalize its capital structure. Founded in China in 1984, Penyao Environmental Protection Co., Ltd. (“Penyao EP” or the “Company”) is an integrated water and wastewater treatment ("WWT") company that owns/operates a sizeable portfolio of municipal BOT/TOT projects, provides EPC and BT services as well as manufactures/sells water/wastewater equipment. As of 31 December 2016, Penyao EP had a total of 19 operational and pipeline BOT/TOT projects across seven provinces in China, including 13 WWT projects, four water supply projects, one reclaimed water project and one sludge treatment project. Total design capacity for water/WWT projects amounted to 1.6 million tpd.
Investment Description
  • International Finance Corporation (IFC)
The project sponsor is Penyao EP, a private company preparing for IPO in China. It is currently 36.12% owned by Chairman Mr. WANG Hongchun and his brother Mr. WANG Chunlin. The next largest shareholders include Ciena Enterprises Limited (23.37%), Lionguard Investments Limited (13.18%) and Huatai Zijin (Jiangsu) Equity Investment (6.95%). The remaining shareholders account for less than 5% each.
Contact Information
Mr. SONG Wuying , Vice General Manager +86 13961571880 swy@penyao.com.cn Yixing Gaocheng Town Industrial Zone www.chinapenyao.com ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/