MAEH is a private company registered in Mauritius with operating subsidiaries in Thailand and Indonesia. Its shareholders include: - Global Environment Emerging Markets Fund II, LP (GEEMF II), a private equity fund, with a 72% equity share. GEEMF II was launched in 1997 with $120 million in funding, including a loan from the Overseas Private Investment Corporation (OPIC). - Thai Recovery Fund (TRF), which holds 18.5% of MAEH’s equity. TRF is a $50 million equity fund set up by Asian Development Bank, Kreditanstalt für Wiederaufbau (KfW), Japan Bank for International Cooperation (JBIC) and State Street Corporation in 2001 to invest in Thai companies that are undergoing expansion or restructuring. - Modern Asia Environmental Company Ltd., represented by Mr. Edward Corcoran, a waste management industry veteran, holds 9.5% of MAEH.

The total expansion program for the years 2004-2007 is estimated at $34.7 million in 2004 dollars. IFC would provide an A loan of up to $15 million for its own account, including $5 million on a standby basis. MAEH would finance the balance from internal cash flow and cash resources from a 2003 equity round.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

Proceeds of IFC’s corporate loan would be invested by MAEH in existing subsidiaries, acquisitions and greenfield investments in the ASEAN region. MAEH’s existing operational facilities include the Eastern Seaboard Environmental Complex (ESBEC), which is a non-hazardous industrial waste processing facility in Chonburi Industrial Estate, Thailand, and Prasadha Pamunah Limbah Industri (PPLi), a hazardous waste processing facility south of Jakarta, Indonesia. Both facilities would be upgraded/expanded as part of the project. In addition, MAEH would invest in additional transfer stations in both Thailand and Indonesia to increase volume flows to ESBEC and PPLi and expand the Company’s geographic reach. New ventures to be financed as part of the project may include a greenfield solid waste management complex at a site to be determined in the Philippines and a waste-to-steam pilot project inside the Bangpoo Industrial Estate, Thailand. The Bangpoo project is being conducted under the auspices of the Industrial Estates Authority of Thailand with support from NEDO (the National Energy Development Organization of Japan).

MAEH’s operations make a direct contribution to the long-term sustainability of economic growth and improvement of human living conditions in the region. Specific impacts include: - Reduction of air, soil and water pollution in a region where these problems are already acute and on an accelerating trend. MAEH offers an environmentally compliant alternative to open dumps, which service the majority of the industrial waste market at low prices and are detrimental to the local communities. - Reduction of disease. - Recycling and recovery of valuable resources. This includes a recycling line at ESBEC, which recaptures materials that can be used in manufacturing processes; the waste blending activities at PPLi, which create synthetic fuels that can be used in certain industrial processes, such as cement production, thereby reducing the need for coal or oil fuels; and the proposed waste-to-energy pilot at Bangpoo. - Community links. MAEH invests in health and education programs in the communities near its facilities. - Pressure on regulatory bodies and waste generators to improve local practices. As part of its competitive strategy, MAEH actively lobbies local regulators to enforce standards. It also builds an educational aspect into its marketing to local managers of multinationals, by reinforcing the value of adhering to standards set by their corporate headquarters. - Local Employment. MAEH promotes sustainable employment and commercial growth, creating a significant number of local jobs in much needed infrastructure. IFC Role: Despite MAEH’s strong operational and financial performance, it has difficulty attracting financing from commercial banks because of their unfamiliarity with the commercial waste management industry and, in the case of Thailand, its short operating history. (The Thai operations reached full commercial mode in early 2002.) MAEH is almost completely equity-financed. Its growth is being constrained by the lack of debt capital, which prevents MAEH from making major investments, from entering into negotiations for major acquisitions and from bidding in large competitive tenders due to the need for large bid and/or performance bonds. The IFC debt would, thus, - help MAEH establish a credit history and - put the company on a faster growth trajectory.

MAEH designs, constructs, and operates its facilities and performs related waste management activities to meet best international practice. As the first company in the rapidly growing East Asia region to provide industrial waste generators with integrated, responsible waste management and recycling services, it offers assurances to its customers, government, and the population at large that wastes are properly handled, treated, and disposed from “cradle-to-grave”. MAEH has presented plans to address the environmental and social issues associated with its operations, including: facility siting and licensing; waste collection and transport; waste receiving, storage and materials recovery; chemical stabilization; fuels blending and thermal destruction emissions; landfill disposal and groundwater quality; stormwater runoff and control, wastewater/leachate treatment, and surface water quality; air quality controls, including dust, odor and gas generation; closure and post-closure care; emergency preparedness and response; environmental management systems; employee health and safety; and community development and impacts. Upon implementation of specific measures, MAEH will comply with applicable host country regulatory requirements, international environmental standards, World Bank environmental and social policies, and IFC Environmental, Health and Safety Guidelines for Waste Management Facilities.
Location of environmental documents in locally affected community
Waste Management Siam 22nd Floor, UBC II Building, 591 Sukhumvit Soi 33, Kwang Klongton Nua, Khet Wattana, Bangkok 10110 THAILAND Eastern Seaboard Environmental Complex 88 Moo 8 Tambon Bowin, Ampher Sri Racha Chonburi, 20230 THAILAND Prasadha Pamunah Limbah Industri Jl. Raya Narogong-Desa Nambo P.O. Box 18-Cileungsi, Bogor 16820-INDONESIA