The controlling shareholder of GDIH is Guangzhou Development Group Co., Ltd. (GDGC), a state-owned company under the leadership of the Guangzhou Municipal Government.

GDIH is planning an investment program in an amount of approximately $440 million equivalent in different industries, including power generation, shipping, fuel oil logistics, natural gas distribution, etc. The proposed IFC investment involves a 10-year RMB-denominated loan to GDIH in an amount of $50 million equivalent, in support of GDIH’s on-going capital expenditure program.

50.09 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.09
Equity

* These investment figures are indicative

GDIH is a holding company headquartered in Guangzhou City. Most of its investments are located in Guangdong Province, close to Guangzhou City. In addition, GDIH has an investment as a minority shareholder in a mine-mouth coal-fired power plant under construction in Pannan, Guizhou Province.

The project will contribute towards meeting the energy needs of Guangdong province in a cost effective and environmentally sound manner. Guangdong province is currently facing power shortages, which is forcing it to keep expensive diesel generators in operation. GDIH will be investing in new power generation capacity and environmental technology through a number of sub-projects. IFC participation would provide a “seal of approval” that would help GDIH to attract foreign investors when it is ready for a partial privatization; and environmental expertise, including technical assistance, which would help the company to improve efficiency and environmental control in its coal-fired power plants.

GDIH’s three main business sectors are electric power, energy logistics and infrastructure. GDIH is the largest electric power generating company in Guangzhou City. In order to continue to provide reliable supply of electricity, the company is expanding its power generation business by developing a new LNG-fired combined cycle power plant project and investing in several large-scale coal-fired power plant projects. Some of their power plants and power projects under development are within the Pearl River Delta region where improvement of ambient air quality has been a challenging task by Provincial and Municipal environmental regulators. GDIH is also promoting energy logistics (coal loading / unloading dock, coal storage yard, oil loading / unloading jetty, oil storage capacity) in Pearl River Delta. GDHI’s infrastructure business includes investment in highway network in the Pearl River Delta and development of natural gas distribution network in Guangzhou Nansha Development Zone.

The appraisal by IFC included:

- GDIH’s environmental and social management system
- Environmental and social performance of GDIH’s existing and new investments (both directly owned and through investment as a minor shareholder) in the electric power, energy logistics and infrastructure
- Environmental benefit of FGD installment
- Air quality issue of the Pearl River Delta region
- Greenhouse gas emissions and energy efficiency related to GDIH’s electric power business.
- Health and safety risks associated with coal mines
- Environmental and Social Action Plan (ESAP) by GDIH

In order to address issues for risk minimization and opportunities for enhancement of sustainable business operations, GDIH and IFC are working to agree on ESAP, which will be disclosed once finalized.
Location of environmental documents in locally affected community
Environmental documentation will be made available at the followinglocation: Financial Department, 29th Floor, Development Center, No. 3, Linjiang Road, Guangzhou, 510623, China