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