The International Finance Corporation, a member of the World Bank Group, is providing a $70 million loan to China Everbright International Limited, an investor and operator in environmental friendly businesses, to build three water plants in China. The project will further develop China's water sector and promote water efficiency in the country.

China is facing a severe water shortage caused by its fast-growing economy, large population, and rapid urbanization. The Chinese government has adopted a multifaceted approach that combines economic and environmental regulations at the national and provincial levels to reduce water pollution and improve efficiency over the years. These measures have resulted in improved wastewater treatment and led to the emergence of several internationally competitive Chinese water companies that have started expanding overseas.   Everbright International will use IFC's financing to expand environmental water business by building a wastewater treatment plant, a pioneering wastewater reuse plant and a ground water plant. Upon completion, the first plant can treat 150,000 cubic meter of wastewater every day, while the second plant can recycle 20,000 cubic meter of water a day.

"IFC's financing and global network in the water industry will help us better integrate our businesses across the supply chain," said Everbright International Chief Executive Officer Chen Xiaoping. "With IFC's help, we will adopt global best practices that are important for making our company more international."

Listed on the Hong Kong stock exchange, Everbright International invests, builds and operates 24 water-related projects, 22 waste-to-energy plants, six hazardous solid waste landfill projects, and 18 alternative energy projects in China.  

"In a world where almost 800 million people don't have access to clean water, IFC is helping China and other countries improve water security," said IFC Executive Vice President and CEO Jin-Yong Cai. "This investment will support the establishment of state-of-the-art water facilities, help make the China's water sector more efficient, and promote global best practices

In China, IFC has financed four water projects, with two on wastewater treatment, one on water supply, and the remaining one on seawater desalination.