Early Warning System

Countries

China

Geographic location where the impacts of the investment may be experienced.

Specific Location

Hunan Provincial Chang–Zhu–Tan Resource-Conserving and Envt-Friendly Society Management Commission

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

New Development Bank (NDB)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Active

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Aug 30, 2017

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

The People's Republic of China

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Climate and Environment

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, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 279.78 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported CNY 2.0 billion
Converted using 2019-10-06 exchange rate.

Loan Amount (USD)

$ 279.78 million

Project Cost (USD)

$ 433.66 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported CNY 3.1 billion
Converted using 2019-10-06 exchange rate.

Bank Documents

Hunan%20Ecological%20Development%20Project%20(China)

Primary Source

Original disclosure @ NDB website

Updated in EWS Jan 10, 2020

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank document, in order to maintain economic growth and urbanization without extensive damage to important natural resources, ecological preservation has become an important priority of the Chinese government. In this context, the Hunan Ecological Development Project (the Project) is designed for the Green Heart Center of the Hunan Chang-Zhu-Tan City Cluster, supported by the New Development Bank's (NDB) financing. The Project is in alignment with the NDB's mandates, to promote sustainable development through the ecological reservation.

The objective of the Project is to improve the ecological environment in Hunan Green Heart Area by improving water quality and flood control and restoring the local ecological environment. The NDB will support the Project through a Project Financing Facility loan up to CNY 2 billion to the People's Republic of China, and subsequently to the People's Government of Hunan Province. The loan will be on-lent to eligible subprojects that aim to improve flood control, restore integrated ecosystem, rehabilitate river courses and improve sewage treatment in the watershed of the Xiang River.

The Project comprises subprojects located in the Project Area of three cities: Changsha, Zhuzhou and Xiangtan. The Project components are designed to improve wastewater treatment by building wastewater pipelines, enhance flood control and drainage through rehabilitation of river courses, promote afforestation, and improve water quality and quality of life for people in the area.

The first four subprojects are expected to be implemented over a period of 42 months ending in December 2020. Suppliers for the Project will be selected through a competitive and transparent bidding process.

The Loan will be repayable in 32 semi-annual equal principal installments over 16 years.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

New Development Bank (NDB)

The total estimated cost of the Project is CNY 3.08 billion. NDB’s loan to the Project is provided through a lending modality of Project Financing Facility (PFF), with an amount up to CNY 2 billion. Considering the timing, readiness and fitness of different subprojects, PFF is chosen to give flexibility to the subprojects and to make NDB’s financing more efficient and need-driven.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*There is no further information being disclosed at this stage of the project*

For further information, comments or suggestions please reach out to us at info@ndb.int.