A private sector credit committee meeting is to be held by ADB to review the funding proposal submitted to the bank, and it is anticipated that a board decision would be made in late October.
The borrowing entity would be Sanchuan Clean Energy Development Co, which is being established by ZDSC, said ADB. The bank added that the funding would be used to support the expansion and capital expenditure plan to build, rehabilitate, expand, upgrade, privatise and/or operate small hydro plants.
Through five subsidiaries, ZDSC owns 17 plants with combined installed capacity of 133MW in three provinces. The plants and development rights to other projects are to be transferred to the new company, which aims to add about 300MW of capacity to the portfolio over the next three to four years. It will be mostly active in central and western China.
ADB lists the funding aspects under the submitted proposal as US$58.3M of private sector loan, a B-loan of US$120M and equity investment of US$25M.
