Beijing, February 12, 2007—IFC,
the private sector arm of the World Bank Group, today approved the first
loan under the IFC China Utility-Based Energy Efficiency Program. Industrial
Bank, the CHUEE program’s initial banking partner, will disburse its first
energy efficiency loan to Shandong Dongying Shengdong Machinery Company
Limited, which will use the 16 million RMB ($2.1 million) financing to
install power generation facilities on behalf of its client, Shanxi Haizi
Coking Group Company Limited, located in Shanxi Province. The generators
will use waste coking gas from Shanxi Haizi’s facilities, supporting the
use of clean production techniques and reducing carbon emissions.
The generators’ use of waste coking
gas from Shanxi Haizi’s facilities will reduce carbon emissions and the
environmental impact on one of China’s most polluted provinces. The
estimated total reduction of carbon dioxide will be 22,000 tons per year,
or 220,000 tons over the project’s 10-year span.
“As a national commercial bank, we
have a responsibility to provide suitable and competitive financial products
that support and promote development of the energy-saving and environmental
protection industries in China,” said Chen Dekang, Vice President of the
Industrial Bank. “We will speed up the marketing promotion of this innovative
energy efficiency financing product.”
Unlike conventional loans provided by
commercial banks in China, Industrial Bank’s energy efficiency loan uses
a unique security structure which includes recognizing cash-flow from energy
savings in the security package.
“As a sustainable investor in
the private sector, we are pleased to work with Industrial Bank to
address China’s pressing energy consumption challenges,” said Richard
Ranken, Director of IFC’s East Asia and Pacific Department. “I hope this
first loan encourages other Chinese commercial banks to look into the energy
efficiency market and work with private companies who have traditionally
had limited access to finance.”
IFC, the private sector arm of the World
Bank Group, promotes open and competitive markets in developing countries.
IFC supports sustainable private sector companies and other partners
in generating productive jobs and delivering basic services, so that people
have opportunities to escape poverty and improve their lives. Through FY06,
IFC Financial Products has committed more than $56 billion in funding for
private sector investments and mobilized an additional $25 billion in syndications
for 3,531 companies in 140 developing countries. IFC Advisory Services
and donor partners have provided more than $1 billion in program support
to build small enterprises, to accelerate private participation in infrastructure,
to improve the business enabling environment, to increase access to finance,
and to strengthen environmental and social sustainability. For more information,
please visit www.ifc.org.
About the IFC China Utility-Based
Energy Efficiency Program
The China Utility-Based Energy Efficiency
Program is a new energy efficiency financing program designed by IFC at
the request of China’s Ministry of Finance, to stimulate investment in
energy efficiency and clean energy projects. The goal is to reduce emissions
of greenhouse gases by creating a sustainable financing mechanism for small
and medium enterprises to invest in energy efficiency projects. IFC cooperates
with Chinese commercial banks and offers them a facility whereby IFC shares
part of the loss for all loans within the energy efficiency portfolio.
The program also provides advisory services on marketing, engineering,
project development, and equipment financing services to banks, project
developers, and suppliers of energy efficiency products and services. The
program operates under the IFC Private Enterprise Partnership for China.
For more information visit www.ifc.org/ifcext/chuee.nsf.