The growth and business expansion of the Sound Group is driven by Wen Yibo, the group’s founder and Chairman. Mr. Wen and his family members are together the ‘sponsors’ of the company and hold the majority of its shares. Mr. Wen graduated from Tsinghua University in Beijing with a master degree in environmental engineering in 1989, and qualifies as a registered senior engineer. Mr. Wen worked as a senior engineer in the Planning and Design Institute of the Ministry of Chemical Engineering from 1991 to 1993, focusing on the research and development of wastewater treatment technology.

The proposed IFC investment consists of a preferred equity participation of up to $10 million, convertible into common shares.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

Beijing Sound is based in Beijing, China. However, the company’s projects are located in various provinces of China.

China is facing serious challenges in terms of water shortage and environmental pollution. By improving water quality, the project will result in public health improvements, including a reduction in water-borne diseases. Further, many of the company’s project sites are in the poorer regions of China such as Inner Mongolia, Yunnan and Jilin provinces, where investments in infrastructure, especially in the water sector, are urgently needed and encouraged by the Government. The project will also demonstrate the ability of the private sector to operate successfully in the water and sanitation sector, which is crucial to China’s sustainable development. IFC’s support of the project will help to address China’s water pollution problems by supporting a qualified private player in the wastewater sector. Further, IFC’s financing will help in the success and timeliness of the company’s expansion plans by raising the level of confidence of international investors, which in turn will allow the company to raise funds more efficiently. IFC’s participation will be fully supportive of the current liberalization policies of the Government for the sector, which has the potential to attract more and more private investment in the near term.

This is a Category B project. The following potential environment, health and safety impacts of the project were analyzed:

- Environmental assessment and management systems;
- Water treatment and finished water quality;
- Wastewater treatment and effluent quality;
- Sludge management;
- Hazardous materials management and emergency response;
- Employee health and safety; and
- Facilities site selection, land acquisition, and social impacts.

Beijing Sound has presented plans to address these impacts and to demonstrate that the project will:

- be consistent with the company’s corporate environmental, health and safety (EHS) policies and ISO-certified environmental (ISO 14001) and quality (ISO 9001) management systems; and
- comply with applicable Chinese laws and regulations and IFC environmental and social requirements.
Location of environmental documents in locally affected community
Beijing Sound Environmental Engineering Co. Ltd. Room 306 National Environmental Protection Industry Zone Ma Ju Qiao, Tongzhou District Beijing 101102 Phone: 010-6050 4710