TLG is a publicly listed on Hong Kong Stock Exchange. The ultimate shareholders of the Company are the family of Mr. Zhang Yingcen, the founding sponsor and Chairman of the Company with majority stake of 62.6%, public shareholders with 35.2% and management with 2.2%

The total project cost is approximately US$353 million, to be financed by IFC/AMC equity investment, IFC A Loan, loans from several Taiwanese banks, as well as internally generated cash.

115.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity	75.0

* These investment figures are indicative

TLG has city gas concessions, CNG/LNG stations and LNG processing plants at various provinces in China. The location of the project is in China.

i) Access to Energy: The Project will help improve lives of a large population in third-tier cities and frontier regions in China by laying the infrastructure to provide access to affordable and clean energy.
ii) Environmental Benefits: The combustion of natural gas results in virtually no atmospheric emission of sulfur dioxide and particulates, and far lower emissions of nitrogen dioxide (which contributes to urban smog) and carbon dioxide (the main contributor to global warming). The Project will supply natural gas to residential, industrial and commercial users through pipelines to substitute coal and oil. The environmental benefit of this project is significant.
iii) Demonstration Effect: IFC''s investment will aid a private company in the rapid growing gas distribution sector to increase its scale and geographical presence. A successful expansion should have a demonstration effect within the gas sector in China.

i) Stamp of approval: The Company has expressed a desire to partner with IFC to increase the visibility of the Company and improve the access to the international banking market. IFC will help the company being viewed by the equity market as of high standard, thereby increasing shareholder value in the long-run.
ii) Access to long-term financing: IFC financing would not only support the capital expansion but also enable the company to have a committed financial partner who has a long term investment horizon and therefore would bring to the Company access to stable, longer term financing.
iii) Knowledge sharing: IFC would add value through sharing significant expertise and best practice in the gas sector and also provide a framework of guidance in corporate governance and environmental and social standards for a growing company.

None of the urban gas projects involve manufacturing processes. Air emissions and wastewater discharges are limited. All the gate stations are located on the outskirts of urban areas and distances to the nearest residential area meet local regulatory safety requirements. EIAs completed for the existing operations have not identified any natural reserves or protected species at or near any project sites. All infrastructures in the gas distribution networks is carefully selected to avoid residential communities and ecologically sensitive areas. Tian Lun’s historic company development was based on brownfield developments through merger and acquisition transactions. Development of greenfield projects only become necessary in recent years. Land acquired for recent developments has been limited and mostly in urban areas, their outskirts, or industrial zones with direct access to existing infrastructure to minimize the need to acquire land.



Among the proposed three LNG plants, two are brownfield which will be built within existing plant boundaries, and one is a greenfield LNG plant project located in an industrial park. Land acquisition for the greenfield LNG plant has been managed by local authorities with a compensation package and livelihood restoration measures to improve livelihoods of those directly affected.



A limited number of specific environmental and social impacts identified during the review can be avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria.



The key E&S issue related to this proposed investment is effectiveness of Tian Lun’s E&S management system at the corporate level and its implementation at the level of its subsidiaries which are geographically diverse, for a wide range of specific activities.



The key E&S risks and issues include the following:

- Operational hazards, fire prevention, and emergency response

- Occupational health and safety

- Community safety

- Road transportation safety

- Contractor labor management

- Land acquisition and resettlement

- Community engagement



Mitigation measures for the potential E&S impacts have been identified and are incorporated into an ESAP. The potential adverse E&S impacts of this project are therefore few in number and limited to project sites, and may be readily mitigated. This is therefore an E&S Category B project.



The resettlement described in the PS5 section is comparable with similar resettlement programs in other IFC Category B projects in China and the categorization is therefore considered consistent with past IFC practice. No protected areas or protected species have been identified at, or near, the project sites and thus Performance Standard (PS) 6: Biodiversity Conservation and Sustainable Management of Living Resources are not applicable. Indigenous Peoples were identified in the project area but limited by number and impact. No issue related to cultural heritage was identified in the pro
ject area; thus PS8: Cultural Heritage is not applicable.



For detailed Environment & Social risks and mitigation methods, please refer to the disclosed Environmental and Social Review Summary.

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.