NINGXIANG — The Asian Development Bank (ADB) and China Water Affairs Group Limited (CWA) have signed a $150 million (in Chinese yuan equivalent) financing package to address land-based pollution stemming from the challenges of Ningxiang City’s wastewater management system and to improve water supply in lower-tier urban areas in the People’s Republic of China (PRC).
ADB provided a local currency offshore loan amounting to $100 million from ADB’s ordinary capital resources. As the Mandated Lead Arranger and Bookrunner, ADB also mobilized $50 million through New Development Bank to complement CWA’s long-term financing requirement.
The financing package will support the construction of a new 100,000-cubic-meters-per-day smart wastewater treatment plant, including the related network infrastructure, and the rehabilitation of an existing 50,000-cubic-meters-per-day wastewater treatment plant in Ningxiang City. It will also fund the rehabilitation of aging water supply pipelines to improve services across tier 3–5 cities within CWA’s existing concession areas in the PRC.
“ADB plays a key role in bridging the market gap for offshore local currency funding by providing a long-term financing package that is limited in the market yet critical for strengthening funding structures,” said ADB Country Director for the PRC Asif S. Cheema. “This project will also support the country in addressing industry challenges caused by aging infrastructure amid rapid urbanization.”
The project will help the Ningxiang public-private partnership initiative, a high-priority project of the Hunan provincial government to protect Dongting Lake—the PRC’s second-largest freshwater lake and a Ramsar-designated wetland critical for flood regulation and biodiversity conservation. It complements other flagship ADB initiatives in the PRC focused on wetland protection and restoration of fragile ecosystems, such as the Action Plan for Healthy Oceans and Sustainable Blue Economies, the Yangtze River Economic Belt Program, and the Regional Flyway Initiative.
“This deal aims to show the feasibility of creating a ‘one-city’ integrated water ecosystem by connecting tap water, sewage, and drainage systems,” said CWA Chairman Duan Chuan Liang. “Coupled with the use of enhanced biological treatment processes and technology, it will improve operational efficiencies across the water value chain, reduce carbon emissions, and showcase the benefits of integrated solutions in providing clean and sustainable water supply in the areas we serve.”
CWA is one of the largest privately owned water supply operators in the PRC and is listed on the Hong Kong Stock Exchange. It specializes in urban-rural water supply, pipeline direct drinking water, sewage treatment, drainage, water environmental renovation, and related services. It serves 25 provincial-level administrative regions in the country with an estimated population of more than 30 million.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
