Metito II

completed

Metito Holdings Limited (MHL) specializes, through its various operational subsidiaries (the Metito group, Metito), in providing design, engineering, procurement, contracting, and operations and maintenance services of water and wastewater systems for industrial and municipal customers, with presence primarily in the Middle East and Egypt. Metito also has a number of concessions in the region which are managed through MUL, a wholly owned subsidiary of MHL. IFC took a 7.37% equity stake in MHL in 2007 and provided a US$20 million loan to MUL. In 2008, MUL formed a partnership with Berlinwasser International (BWI), a leading German water management firm, to (a) enter the Chinese market through a joint venture company – BCH; and (b) develop large-sized water projects for public sector clients in the MENA region through a separate joint venture company – MBL. In China, BCH’s operations currently include two concessions (Hefei and Nanchang) that were entered into by BWI prior to its partnership with MUL. Nanchang – Nanchang Qingshanhu Project Co., Ltd. (NQP) is located in the north of Nanchang, the capital city of Jiangxi Province. It is the biggest among Nanchang’s four sewage treatment plants, treating 40% of Nanchang's sewage generated in the Qingshanhu district. Its total design capacity is 1,000,000m3/day, to be built in three phases. Its current capacity is 500,000m3/day, comprised of Phase I (330,000m3/day which commenced operation in 2004) and Phase II (170,000m3/day which commenced operation in 2009). The concession is 80% owned by BCH and 20% by Beijing Urban Construction Environmental Protection Investment Development Co. Ltd. Hefei – Hefei Wangxiaoying Sewage Treatment Co., Ltd. (HWC) is located in the center of Hefei, the capital city of Anhui Province. HWC’s current capacity is 330,000m3/day. It is the biggest of Hefei’s seven sewage treatment plants, which accounts for 40% of the wastewater of Hefei city. The concession is 80% owned by BCH and 20% by East China Engineering Science & Technology Co. Ltd (ECEC). BCH has plans to expand its business in China through acquiring existing assets or concessions, and through participation in new concessions either through public bidding or negotiated contract procedures in compliance with PRC regulatory requirements. Metito’s operations in the Middle East North African (MENA) region date to 1958. In 1999, Metito began acquiring industrial concessions for water and wastewater treatment plants on a Build, Own, Operate, and Transfer basis. Metito currently has a portfolio of 17 concessions with a total installed capacity of 17,900 cubic meters per day for water supply, and 845,800 cubic meters per day of sewage treatment across the MENA and Asia regions. Furthermore, an additional 4,500 m3 per day of water supply is currently under commissioning. MUL is seeking financing from IFC in the form of preferred equity of up to USD $20 million in MUL to support its expected growth in the concessions business in MENA, China and other geographic locations.