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MTI Environment project

June 16, 2014



Project number : 33670 Region : East Asia and the Pacific Country : China Company name : MTI Environment Sector: C-BA - Water and Wastewater Utilities Date SPI disclosed: June 11, 2014 Project Description: IFC is proposing an US$4 million investment in Series A preferred shares in MTI Environment Group Ltd ( the Company or MTI ), a Cayman Island-based company, which is a holding company for a group of US and Chinese operating companies. MTI is a leading wastewater treatment, sludge treatment and odor control design and Engineering, Procurement and Construction (EPC) company in China. MTI has been in the wastewater treatment sector for more than 10 years with a solid record of quality projects and, after acquiring BacTee, an experienced US sludge treatment and odor control company, and is moving towards being a full-service sludge and odor technical solution provider. China s wastewater treatment ( WWT ) market continues to grow strongly as China develops and urbanizes, and sludge volume has increased alongside WWT capacity. As landfill space has filled up and regulatory policy has changed to favor treating sludge as a resource, sludge treatment market is going to take off and witness accelerated growth. Project Sponsor and Major Shareholders of Project Company MTI is a private company founded by Mr. Feng Liu, and Mr. Donald Wang. The Company s primary shareholders include Mr. Feng Liu, Mr. Donald Wang, and Mr. Di Gao, who are acting as sponsors for the Company, with the rest of shares held by a few individuals as minority shareholders. Total Project Cost and Amount and Nature of IFC%s Investment IFC plans to invest up to $4.0 million in Series A preferred shares out of an up to $15.0 million investment round. A strategic investor is considering a co-investment up to $7.0 million. The management team is also considering a co-investment of up to US$4.0 million. The invested proceeds will be used for capital expenditures related to expansion, marketing and sales, continued R&D, as well as strategic partnerships, which will help MTI further improve and optimize its composting and odor control technology. Expected Development Impact : - MTI will provide sludge treatment and odor control technology to wastewater treatment plants in China which currently are struggling to deal with their own waste products and the environmental problems they create. - MTI will transfer technology into China and adapt it for local conditions so it address local problems at a reasonable market price. The technology uses waste as a resource consistent with Chinese government guidance. - MTI will continue to provide EPC services for the growing wastewater treatment market in China. - MTI will recycle sludge into construction fill allowing for reduced use of soil IFC%s Expected Role and Additionality : - IFC will provide needed equity capital which the company has not been successfully raised to date. - IFC will provide access to technical e

Project completion date : 2015-06-11 12:00:00

Major organization : MTI ENVIRONMENT GROUP LIMITED

Address : 1st Floor, Building C Danlong Mansion No.3 Changwa Road, Haidian District Beijing, 100089



Country :China

Financier : International Finance Corporation (IFC),

Financier address : International Finance Corporation (IFC) 2121 Pennsylvania Avenue, NW Washington, DC 20433 USA Tel: (202) 473-3800 Fax: (202) 974-4384


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Source: TendersInfo (India)


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