The project is owned by Zhongda Yanjin Power Generation Co. Ltd. (or the company) and being developed by Zhongda Sanchuan Hydro Development Co., Ltd. (“Zhongda Hydro”), a Zhejiang-based holding company that develops, owns and operates small hydro assets in China and is a 70% shareholder of the company.

Project cost is approximately $69 million, to be financed 60% by debt and 40% by equity. The proposed IFC investment is a debt financing of up to $21 million in the form of an A Loan to Zhongda Yanjin.

22.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	22.0
Equity

* These investment figures are indicative

The White Water project is located in Yanjin County of Zhaotong Municipality in the north-eastern region of Yunnan Province, China. The project site is approximately 470 km north-east of the Yunnan’s capital city Kunming, 150 km north-east of Zhaotong city and 7 km from Yanjin County’s town.

The project will have a substantial development impact. IFC’s investment will support the development of clean energy resources in China, and the project will substitute building of new coal-fired plants in China, resulting in the avoidance of SO2, NOx and particulate emissions as well as the avoidance of an estimated 8 million tons of GHG emissions over the first 30 years of operation of the plant.

IFC will help mobilize long term financing for a local private power developer in China, for which appropriate long term financing would not be available locally. IFC has also been facilitating the Project’s application for carbon credits which will improve the Project’s financial viability. IFC’s involvement will help the company to improve its environment, social, technical and corporate governance practices.

Environmental Impact Assessments (EIAs) for the project were prepared by staff at the Institute of Ecology and Geobotany at Kunming University, and were approved in August 2004 by relevant Chinese authorities. Project land acquisition impacts directly affected villagers in nine villages of two townships in Yanjin county. As the EIAs do not include a formal Resettlement Action Plan (RAP), which is not required for project approval in China, a RAP has been developed by the company and its consultant with IFC assistance and has been publicly disclosed.

Environmental impacts are typical of hydro projects. The project is located in a relatively remote mountainous area with relatively luxuriant vegetation coverage, and good water quality. There are no natural conservation zones, cultural relics, or historic resorts in the project vicinity. There are also no rare or endangered or special species of animals and plants. None of the families directly affected by the project are of designated minority groups. The riverine aquatic environment for a river segment of about 35 km long will be replaced by a lacustrine environment. A positive impact from the project will be the avoidance of greenhouse gas emission through hydropower electricity generation. Because the project region is mountainous, run-of-river projects have relatively high dams but small reservoirs. IFC’s Independent Engineer has evaluated dam safety as part of its work scope. The project is on the Bai-Shui-Jiang, a sub-tributary to the Yangtze River, which flows entirely within China.
Location of environmental documents In locally affected community
The following complete set of Category A documentation regarding the Baishuijiang/ White Waters River Hydropower Development Project has been released locally and to the World Bank InfoShop:

1. Non-Technical Summary on Environmental Impact Assessment, The White Waters River Hydropower Development Project, June 2005

2. Environmental Impact Assessment Review, For Baishuijiang Hydropower Station, In Yanjin County, Zhaotong City, Yuannan Province, prepared by Yunnan University, April 2004 (three EIAs - one each for Stages I, II, and II)

3. Resettlement Action Plan, For White Water River Hydropower Project, In Yanjin County, Zhaotong City, Yunnan Province, prepared by Shanghai Academy of Social Sciences, December 2005.

The complete set of Category A documentation is available from the World Bank InfoShop:

World Bank InfoShop
1818 H Street, N.W., Room J1-060
Washington, DC 20433
USA

Telephone: (202) 458-4500 (USA)
Fax: (202) 522-1500 (USA)
E-mail: pic@worldbank.org

Hours of Operation: 9:00am to 5:00pm (Monday through Friday)

The complete set of Category A documentation is also available locally at the following locations:

Zhejiang Zhongda Sanchuan Hydropower Development Co., Ltd.
28F, Zhongda Plaza, North Zhongsan Road 366, Hangzhou, China.
Telephone: +86-571-8577-8210
Fax: +86-571-8577-7855
Email: lh@zdeg.com

Yunnan Zhongda Yanjin Power Generation Co., Ltd.
8F, Multifunctional Plaza of Yanjin County Government, Yanjin, Yunnan, China.
Telephone: +86-870-6631-881
Fax: +86-870-6631-922
Email: ynzd922@126.com