NDB’s loan to the BOH will be on-lent to private sector borrowers for financing sustainable infrastructure projects in the following sectors: (a) clean energy and energy efficiency; (b) transportation and logistics; and (c) water and sanitation.

The proposed Loan will enable the Borrower to expand its financing for sustainable infrastructure development. This is expected to contribute towards (i) increasing the installed sources of renewable energy (i.e. rooftop solar panels to cater to local renewable energy needs), (ii) rehabilitation of surface water bodies and comprehensive improvement of water environment, and (iii) construction of transport infrastructure (i.e. smart parking with charging facilities for electrical vehicles).

BOH will be responsible for identifying and selecting Sub-Projects for NDB financing based on pre-agreed eligibility criteria. Bank of Huzhou will also be responsible for appraising, financing, and monitoring Sub-Projects.

The Project has been categorized as Category FI-B in line with NDB’s Environmental and Social Framework. Environmental and social (E&S) impacts and risks of the Project will vary depending on the Sub-Projects. NDB financing will not include Sub-Projects with significant adverse E&S impacts, i.e. Sub-Projects assigned Category A. The impacts will be managed and mitigated through application of the BOH’s E&S Management System and ensuring Sub-Project compliance with the country system requirements, as well as the implementation of an Environmental and Social Impact Management Plan agreed with NDB.