New CWI Landfill Gas

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IFC is considering providing a Green Loan to New China Water (Nanjing) Renewable Resources Investment Co., Ltd. (New CWI, NCWI or the “Company”), a private Landfill-gas-to-energy (LFGE) project developer and operator in China that is majority owned by China Water Industry Group Limited (CWI Group, or the Group). Each LFGE project site is managed under a specific subsidiary of NCWI. The subsidiaries are either directly under NCWI, or under one of NCWI’s wholly owned subsidiaries, Shenzhen New CWI Environmental Protection Technology Co. Ltd. (“SZ-NCWI”). The company has 29 operating LFGE projects. IFC funds will be used to finance 24 identified LFGE projects (the “Project”) which include ten sites that are currently under operation (Gaizhou, Lianyuan, Liling, Zhijiang, Nanning, Shanghang, Changting, Wuping, Dingnan, and Yangxin), three sites where construction has started or will commence soon (Wafangdian, Ankang, Shaowu), and one site where the development agreement with the landfills was recently signed (Jingchuan). NCWI is in discussion with landfill operators at multiple other locations to sign project development agreements. IFC funds will also be used for projects at ten of the sites were NCWI is currently in discussions for project development A typical LFGE project site occupies about 4000 m2 or less land and is located within or adjoining existing landfills. The land is provided by the landfill operators and none of the landfills identified for the project is operated by the company or by CWI Group. The company installs landfill gas (LFG) recovery wells, LFG collection and transmission piping to extract and transport the LFG to a pre-treatment and power generation facility installed in the project site. The power is then evacuated and sold to the local electricity grid. NCWI is also, as part of the concession, required to cover the landfill waste areas with high density polyethylene (HDPE) membrane. The operating life of NCWI’s LFGE projects is 8-10 years after which NCWI dismantles and removes all of the equipment and piping to another new site for reuse. The landfills are themselves not associated facilities to the LFGE projects and power transmission/distribution lines (low voltage, 10 kV lines) are part of each LFGE project. For five existing projects which IFC reviewed at the time of the appraisal, the length of transmission lines (T-lines) range from 400 m to 9 km. At two locations the entire T-line is within the existing landfill, in one case an existing T-line has been used, in one case the T-line is within an industrial park and in one case it passes through forest land. Typically, from land leveling to equipment testing, it takes 4-8 months for a project site to be set up.