China’s industrial sludge to be reused in $250 million project

ADB will loan $250 million loan to treat harmful industrial wastewater and sludge generated by SMEs in China...

Mar 30th, 2016
Content Dam Ww Online Articles 2016 03 Adb Sludge

BEIJING, China - The Asian Development Bank (ADB) has awarded a $250 million loan to support the People’s Republic of China’s (PRC) drive to treat harmful industrial wastewater and sludge generated by small and medium-sized enterprises (SMEs).

The loan funds will be used by engineering company CT Environmental Group to build, own, and operate a series of specialised industrial wastewater and sludge treatment plants in designated areas, which will be determined by local governments.

Treated wastewater, which meets national environmental standards, will either be discharged, or supplied back to industrial customers for reuse.

The goal is to build the capacity to treat 450,000 tons ofwastewater and 4,200 tons of sludge per day by 2019.

SMEs account for significant water pollution through water intensive industries such as paper, food processing, chemical and textile. Sludge in particular has a serious impact on soil and groundwater quality given its high level of toxicity, the ADB said.

While larger companies typically have their own treatment facilities, smaller enterprises need solutions that go beyond traditional municipal wastewater treatment.

ADB’s assistance includes a $100 million equivalent ordinary loan and a $150 million equivalent complementary loan in US dollars and yuan, funded by commercial banks, with ADB acting as lender of record.

“This assistance will help a new public-private partnership (PPP) model in handling wastewater and sludge from SMEs, with beneficial effects for both waterways and public health,” said Hisaka Kimura, East Asia unit head of ADB’s Private Sector Operations Department.

“The project is timely, corresponding to the PRC’s goal to dramatically reduce water pollution, including through PPPs, as emphasized by the recent State Council-issued Water Pollution Prevention and Control Action Plan.”

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