Canvest is a regional WtE player with main presence in Guangdong Province of China. As of November 30, 2015, Canvest operates in China and has secured 7 projects with total installed capacity of 12,400 tpd, including operating capacity of 5,400tpd under both BOO and BOT contracts. These include projects in the Guangdong province – 4 in Dongguan city, 1 in Zhanjiang city and 1 in Qingyuan city as well as one project in the Laibin city of Guangxi Zhuang Autonomous Region.

The major shareholders of Canvest include Best Approach (BVI) with 65.1% shareholding and AEP Green Power with 5.2% shareholding. Best Approach (BVI) is indirectly owned by Mr. Lai Kin Man and Ms. Lee Wing Yee, Loretta, the Deputy Chairman and Chairlady of Canvest respectively. AEP Green Power is a Pre-IPO investor in Canvest and is an investment subsidiary of Asia Environmental Partners, L.P. and its parallel fund (“AEP”). AEP is a private equity fund with an investment focus on the renewable energy and environmental services industries in Asia. It was launched in 2008 by Olympus Capital Holdings Asia, a private equity firm.

Canvest has raised HK$1,068.5mn from its IPO in December 2014. As at 30 June 2015, the company has cash and cash equivalent of HK$1,030.1mn. On top of this, the company will apply for IFC’s convertible loan investments of up to HK$465,012,000 (approximately equivalent to US$60 million) and other bank loans to finance its capital expenditure.

103.99 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	103.99
Equity

* These investment figures are indicative

The company’s projects are located in the following places:
Dongguan, Guangdong Province, China
Zhanjiang, Guandong Province, China
Qingyuan, Guangdong Province, China
Laibin, Guangxi Zhuang Autonomous Region, China

(a) Supporting Leading Private Player: IFC''s partnership with Canvest, a private leading WtE player, will help promote the competition and hence the growth of the waste treatment sector, which is currently dominated by state-owned enterprises (SOEs).
(b) Significant Positive E&S Impact: Utilization of municipal waste to generate renewable energy minimizes the waste sector''s negative externalities, including significant environmental and health issues. Such utilization also reduces waste volume by 80-90 percent.
(c) Avoidance of Emissions and Promotion of Renewable Energy: WtE by incineration, compared to traditional landfilling of waste, avoids methane gas emissions and reduces pollution to ground water caused by landfill, while producing a reliable and renewable source of electric power. Methane is a greenhouse gas that is at least 21 times more potent than CO2 in its impact on atmospheric pollution. Additionally, the benefits achieved from upgrading an existing plant to a more environmentally friendly plant will also reduce other harmful emissions, such as SOx and NOx.
(d) Supporting Frontier Region Development: One of the projects that IFC will support through the Project, is located in Guangxi Zhuang Autonomous Region, a frontier region. This is the first time Canvest invests in a project outside Guangdong province. IFC''s involvement will help create more job opportunities and provide local economic benefits in the area.

(a) Positive signal to the market: IFC''s engagement is expected to provide Canvest the market credibility to access new groups of lenders and investors to support its growing business in the future. In particular, IFC''s lending is expected to help attracting further international capital (debt and equity) investments.
(b) Long-term and Strategic Partnership: IFC will continue to add value to the partnership by providing a combination of additional capital, potential future resource mobilization and on-going expertise in the WtE sector.
(c) Improvement of Performance Standards on E&S: IFC''s involvement is expected to contribute to the further development of the Company''s environmental, health and safety practices.

This is a Category B project in accordance with IFC’s Policy on Social and Environmental Sustainability because it will create a limited number of specific environmental and social impacts that can be minimized, avoided or mitigated by adhering to generally recognized performance standards, guidelines, or design criteria. The WtE facilities currently in operation and under development by Canvest have a limited footprint, by using contemporary technology that meets emission standards established by the European Union (Directive 2000/76/EC and relevant Annexes/Amendments), PRC regulations (GB18485-2014), and applicable WBG guidelines for incineration of MSW, to significantly improve on emissions performance of existing WtE facilities that are being upgraded. Key E&S issues associated with this investment include: the company’s environmental and social management capacity; monitoring and performance of environmental, health and safety and social management systems; specifications and operating procedures for WtE facilities, including emission control equipment, performance and operational standards, and alignment with internationally recognized practices for the sector.



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 procedures. Project specific environmental and social impact assessments (ESIA) approved by PRC regulatory authorities have also been disclosed on the World Bank Infoshop.

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.