SONGHUA RIVER BASIN WATER POLLUTION CONTROL AND MANAGEMENT PROJECT PRIVATE SECTOR FACILITY (PHASE 2)

The project is the second phase of the Songhua River Basin Water Pollution Control and Management Project Private Sector Facility,1 which is part of a broader multiproject initiative under the East Asia Department and the Private Sector Operations Department of the Asian Development Bank (ADB) to address acute water stress in the Songhua River basin (SRB) of northeastern PRC. Phase 2 expands LJEPs' operations into sludge treatment and improves the technical parameters of its existing WWTP projects. Specifically, it will finance investments to (i) install sludge handling units and the treatment and disposal of approximately 1,200 t/d of sludge, and (ii) the upgrade of approximately 300,000 t/d of WWTP capacity to meet higher effluent standards.Similar to the Phase 1 project, Phase 2 will use the proceeds from ADB financing to finance subprojects, which are held either directly by the firm or through wholly-owned subproject company subsidiaries. Both Phase 1 and 2 are envisaged to (i) expedite the delivery of urban water supply, sanitation, and wastewater services in the PRC; (ii) arrest increasing pollution of water resources and reduce threats to public health; and (iii) promote private sector participation in urban water supply, sanitation, and wastewater management in the PRC, among other goals.