NDB will provide the loan to HUIFL, which will be used to finance environmental protection and energy efficiency sub-projects. HUIFL will use the loan proceeds to acquire and lease equipment to lessees for implementation of sub-projects related to wastewater treatment, solid waste treatment and waste metallurgical gas utilization for power generation. The eligible locations for Sub-Projects will exclude four tier I cities to support investments flow into less developed regions.

The Project will contribute to pollution reduction and decrease of greenhouse gas (“GHG”) emissions in the country by increasing lease financing available for environmental protection and energy efficiency solutions in waste, water sectors as well as metallurgy industry.

NDB funds will be used to procure and lease equipment. HUIFL will be responsible for financing these lease equipment to lessees to implement the environmental protection sub-projects. The Project will be implemented over a period of 18 months.

The project has been categorized as Category FI-A in line with NDB’s Environment and Social Framework. Under this project, HUIFL’s existing Environmental, Social and Corporate Governance risk management practices will be enhanced, to establish a robust Environmental and Social Management System (“ESMS”), capable of effectively managing the Environmental and Social (“E&S”) risks associated with the subprojects funded by NDB. E&S screening, due diligence and monitoring of these subprojects will be carried out by HUIFL. The potential adverse E&S impacts and risks of subprojects will be managed and mitigated through the application of HUIFL’s ESMS, as well as the implementation of an Environmental and Social Impact Management Plan, agreed upon with NDB.