Loan and Project Agreements for Zhejiang Green Urban Project – Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II) signed in Shengzhou, China

On 31 July 2019, Loan and Project Agreements for Zhejiang Green Urban Project – Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II) were signed in Shengzhou city of Zhejiang Province, China.

The Loan Agreement was signed by Mr. Xian Zhu, Vice President and Chief Operations Officer of New Development Bank (NDB) and Mr. Bin Han, Deputy Director General, Department of International Financial and Economic Cooperation, Ministry of Finance of China. The Project Agreement was signed by Mr. Xian Zhu and Mr. Jiaxue Peng, Deputy Governor of the People’s Government of Zhejiang Province.

According to the Agreements, The Bank will provide a RMB 825 million (approx. USD 123 million) project loan to the People’s Republic of China for Zhejiang Green Urban Project – Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II). The project aims at upgrading the urban and rural water supply and sewage facilities and enhancing the economic efficiency of water resources and effectiveness of water management system in Shengzhou city. The project has four components: (i) construction of water supply plants and pipelines; (ii) construction of sewage treatment plants and pipelines; (iii) smart digital center for water management; and (iv) capacity building and project management.

Mr. Xian Zhu said, “we are happy to support this strategically important project that will contribute to the holistic upgrade of water supply and sewage treatment system of Shengzhou. The project is coherent with the Bank’s focus on supporting green and sustainable development with innovative technologies in China.”

Mr. Bin Han said, “we believe that through efficient and effective implementation, this project will improve people’s livelihood by achieving optimal allocation of water resources. We also hope that this project could become a good example of developmental knowledge sharing and capacity building.”

Mr. Jiaxue Peng said, “the successful signing of this inaugural NDB project in Zhejiang Province will significantly contribute to the Province’s economic and social sustainable development goals. The Province looks forward to exploring more opportunities of cooperation with NDB in the future.”

Background Information

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. In August 2018, the Bank received AA+ long-term issuer credit ratings from S&P and Fitch.