China Construction Bank contributes to $400 million NZD syndicated loan for the Moa Point Sludge Minimisation Facility Project

Project narrative

On August 10, 2023, the Wellington City Council published the Infrastructure Funding and Financing (Wellington Sludge Minimalisation Facility Levy) Order 2023 in the New Zealand Gazette, which authorized the creation of Sludge Finance LP — a special purpose vehicle wholly-owned by state-owned Crown Investment Partners — to provide up to $400 million NZD of funding towards the construction costs of Wellington City Council's Moa Point Sludge Minimisation Facility (SMF) Project. To provide the funding, Sludge Finance LP agreed to a syndicated lending facility with five banks: Accident Compensation Corporation (ACC), China Construction Bank (CCB), ANZ Bank New Zealand, Commonwealth Bank of Australia, and the Industrial and Commercial Bank of China (ICBC). The levy used by the Council to finance the debt had a 30 year term, though lending details of the financing were unclear. The debt would be held off of the balance sheet of Wellington City Council, instead it will be held on the balance sheet of Sludge Finance LP. Record ID#100072 captures CCB's contribution. Record ID#100073 captures ICBC's contribution. The proceeds were to be used by the borrower to finance the construction of Moa Point Sludge Minimisation Facility, a wastewater treatment facility at Moa Point in Wellington (alongside the city's preexisting wastewater treatment plant) seeking to reduce the amount of sewage sludge created though wastewater treatment and convert it into reusable material while reducing emissions and waste to landfill. The project included the construction of a wastewater treatment plant, a three-story processing building, and an anearobic digestion system. A joint venture of HEB and McConnell Dowell were contracted to implement the project. The project was expected to be completed in 2026. Construction began in November 2023.