East Asia & the Pacific

Sustainable Water in China

About two-thirds of China’s more than 600 cities suffer from water shortages and over 100 cities are seriously affected. China’s fast-growing economy, large population, and rapid urbanization have worsened the degradation of its water resources.

These problems threaten China’s economic growth and the well being of its people. Responding to this challenge, IFC invested in projects that reduce water pollution and consumption while creating jobs. 

In June 2012, IFC provided a $16 million loan to United Water Corporation to help improve the delivery of clean water in China’s less-developed regions by financing the construction of a transmission system for the company’s plant in Jiangsu. This will supply tap water to 100,000 residents in a township that has limited water service and depleted underground water resources.

IFC also extended a $30 million loan to SNF (China) Flocculant Co., also based in Jiangsu, to expand and upgrade a plant that manufactures a chemical that effectively cleans wastewater, helping various industries recycle wastewater, reduce fresh water use and save money. The company is now looking to expand its partnership with IFC to provide wastewater treatment solutions in other emerging markets.

“Improving water quality and efficiency are key strategic priorities for IFC in China,” said Hyun-Chan Cho, IFC’s Country Manager for China and Mongolia. “Together with private and public partners, IFC is keen to find cost-effective and practical solutions to water scarcity in China.” 

The Chinese government has been working on increasing water infrastructure and enhancing wastewater treatment to improve water supply. The 12th Five-Year Plan's Comprehensive Work Plan for Energy Saving and Emission Reduction outlines a series of measures to deal with the water degradation issue. These include requiring industries with high water consumption to implement water-saving technologies, increasing industrial wastewater recycling rates, and reducing major water pollutants.

IFC’s water investments complement these efforts to ensure sustainable water for the future in China.

For more information on IFC in China, contact our communications officer Yu Jing at jyu1@ifc.org 

For more information on World Water Week, visit www.worldwaterweek.org