The current major shareholders of CWA are Mr. Duan Chuan Liang, Orix Corporation, JP Morgan Chase & Co., and Norges Bank.

IFC is considering the provision of debt financing of up to US$70 million (A loan and MCPP loan) and a minority equity investment of up to HKD230 million (approximately US$30 million equivalent).

69.68 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity	29.68

* These investment figures are indicative

CWA has operations being extended to over 30 cities in various provinces including Guangdong, Jiangxi, Henan, Jiangsu, Hunan, Hubei, Sichuan, etc.

The development impact of the Project is expected to include (i) improved water supply and sewage treatment access in the PRC, including higher efficiency, (ii) support of private sector participation in the water sector, (iii) support for Government of China''s development goal with regards to Urbanization as an economic development priority.

IFC''s expected role and additionality includes:
(i) Longer Tenors: IFC''s long-term loan will enable the Company to better match its funding with the payback period of its assets and maintain a solid financial structure while increasing the size and scope of its operations.
(ii) Financing Mobilization: The proposed long term financing involves a MCPP loan, which broadens its financier base to support its future growth.
(iii) Global Knowledge: through the provision of multi-country financing, IFC is sharing international best practices and providing global comparators and benchmarks to CWA, including advice on environmental and insurance matters.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. IFC’s proposed corporate investment will partially be used to finance the rehabilitation and expansion of tap water supply facilities, pipe networks, raw water infrastructure and sewage treatment facilities. Additionally, CWA owns a land bank of about 1,700 acres acquired through its water concessions, and five ready-mix concrete plants, which supply both CWA construction projects and third party customers.



IFC’s environmental and social due diligence of CWA''s operations and facilities being considered for IFC finance indicates that the investment will have impacts which must be managed in a manner consistent with the following performance standards:



- PS1: Social and Environmental Assessment and Management System;

- PS2: Labor and Working Conditions;

- PS3: Resource Efficiency and Pollution Prevention; and

- PS4: Community Health Safety and Security;



As such, all Performance Standards are applicable to this investment. CWA will adopt IFC E&S Performance Standards as part of applicable requirements in its management system and has committed to conduct its activities in accordance with good international industry standards for best practice in the sector.



Because the proposed investment will be used to support future, but as yet, undefined projects, a condition of IFC’s investment going forward will be that the Company shall consider all relevant social and environmental risks and impacts, including the issues identified in PS1 through PS8 while assessing any new business opportunities or service models, in China or elsewhere.



The Company is in compliance with national regulatory requirements and upon implementation of the management plan and specific additional measures described below, will comply with IFC Performance Standards on Environmental and Social Sustainability. A detailed review of E&S risks and mitigation measures are presented in the Environment Social Review Summary and associated action plan that is publically disclosed as part of the IFC’s disclosure / access to information policy.



Corrective action items for this proposed investment include that CWA: (a) adopt and operationalize IFC E&S Performance Standards as part of applicable requirements in its management system for existing as well as future projects and business activities, (b) review and update occupational health and safety policies, procedures and training programs, (c) review its scope of emergency response and update procedures as needed, including a community involvement component that addresses appropriate behavior and safety measures to be implemented in the event of an unplanned release, and (d) undertake a comprehensive review of its portfolio for compliance with IFC PS requirements, identify gaps and prioritize any corrective action that may be necessary in a timely manner.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.