The Asian Development Bank (ADB) has signed a facility totaling equivalent to US$250 million to support the People’s Republic of China’s (PRC) to develop projects to treat harmful industrial wastewater and sludge generated by small and medium-sized enterprises (SMEs).

The assistance is going to CT Environmental Group, which is a pioneer in wastewater and sludge treatment for SMEs in various industrial sectors in the PRC.

Hisaka Kimura, East Asia Unit Head of ADB’s Private Sector Operations Department, stated:

“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. 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.”

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

The loan funds will be used by CT Environmental Group to build, own, and operate a series of specialized 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 of wastewater and 4,200 tons of sludge per day by 2019.

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.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members—48 from the region.