July 2023
CIC has not carried out any audit mission for nor commissioned any consultancy services with AJA Joint Venture and there is no established relationship (financial or others) between CIC and AJA Joint Venture.
The opinion provided herein is an independent opinion on the sustainability credentials and management of the financial instrument, based on the information made available to CIC. CIC has neither interviewed any of the AJA Joint Venture’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by AJA Joint Venture. The accuracy, comprehensiveness and trustworthiness of the information collected rests with AJA Joint Venture. CIC, in providing this opinion, has not certified the effectiveness, the quality or the irreversibility of the assets to be financed by the sustainable financing instrument. AJA Joint Venture is fully responsible for attesting the compliance with its commitments defined in its policies, for their implementation and monitoring. The opinion delivered by CIC neither focuses on the financial performance of AJA Joint Venture, nor on the effective allocation of its proceeds. CIC is not liable for the consequences arising if third parties use this opinion either to make investment decisions or to make any kind of business transaction.
The opinion provided by CIC on AJA Joint Venture can only be used by AJA Joint Venture and the Financial Institution. The distribution and publication are at the discretion of AJA Joint Venture, subject to CIC’s approval.
| Application no. | SFCS-APPLY-2023-003 |
|---|---|
| Certificate no. | SFCS-2023-003 |
| Date of application | 2023.06.05 |
| Company name | AJA Joint Venture |
| Business registration no. | 56583448 |
| Company profile | AJA Joint Venture is in conjunction with Alchmex International Construction Limited, Jardine Engineering Corporation Limited and Agrivert Limited. AJAJV constructed O．PARK2 which is a representative green project implemented under the Design, Build and Operate (DBO) contract. The project construction started in 2019 and is expected to commission in 2024, followed by 15 years of operation. |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
AJA Joint Venture has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Green Building |
| Eligibility Criteria | Achieve green building assessmnet tool with Provisional Platinum rating under BEAM Plus |
AJA Joint Venture has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
AJA Joint Venture has also confirmed the following purposes of the proceeds:
Purpose of financing
AJA Joint Venture has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | Organic Waste Treatment Facilities Phase 2(EP/SP/86/15) |
| Location | Kong Nga Po Road, Sha Ling, Sheung Shui, Hong Kong |
| Project description | The project of Organic Waste Treatment Facilities Phase 2 (O·PARK2) is an upcoming public work situated in Sha Ling. The waste treatment facilities cover an area of 2.5 hectares. O·PARK2 converts food waste into electricity and fertilizer using anaerobic digestion technology with daily treatment capacity at 300 tons. |
| Highlights of green elements and estimated environmental impact | Green Construction Site: 1. Use of certified green products (CIC Green Product Certification, CIC Green Product Certification etc.) for construction 2. Site Electrification 3. Resue MiC site office 4. Use B5 biodiesel for powered mechanical equipment 5. Adopt CIC CAT to evaluate the carbon emission performance Project Design: 1. Reduce 67,000 tonnes of CO2e per year 2. Offset carbon emissions by purchasing carbon credits 3. 24 million kWh of electricity generated annually |
AJA Joint Venture proposes to raise Green Loan for the Project of Organic Waste Treatment Facilities Phase 2 that falls into green building category under the Green Loan Principle. Project BEAM Plus Certificate is submitted to demonstrate that the project has achieved Provisional Platinum rating.
Besides, AJA Joint Venture has stated the highlights of green elements and estimated environmental impacts in two aspects, green construction site and project design. For example, generating electricity with biogas as a source of renewable energy. A page of design submission in project specification is provided to demonstrate its commitment in adopting green housekeeping, green building labeling and green building performance framework approval.
Based on the above information, we concluded that the project would bring some environmnetal benefits. O·PARK2 will generate electricity with biogas, providing renewable energy and reducing electricity generation by fossil fuels. It reduces greenhouse gas emissions from power generation.
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, AJA Joint Venture has established an evaluation and selection process with the following key elements:
Evaluation and selection
Supported by the submitted "AJAJV Governance Body", AJA Joint Venture has confirmed that a JV Board and Management Team to oversee the green project evaluation according to the standard and technical requirements of CIC Sustainable Finance Certification Scheme.
AJA Joint Venture has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. AJA Joint Venture will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, AJA Joint Venture intends to hold and/or invest the balance of proceeds not yet allocated in accordance with Green Finance Framework
AJA Joint Venture has confirmed that all loan proceeds, project receipts and payments will be made through a designated account for the eligible green project. As specified in the submitted "AJAJV Governance Body", the JV Board and Management Team will also be responsible for the internal governance on proceeds management under the guidance of the bank.
AJA Joint Venture has also confirmed to adopt in the attached fund register template with the above information clearly stated.
AJA Joint Venture is committed to transparent reporting and will publish Sustainability / Environmental, Social and Governance Report, within one year from the date of issuance of each sustainable financing instrument and Annually thereafter until the full allocation of the proceeds. The report will consist of information on the allocation of the proceeds and the environmental impacts of the projects.
Allocation Report
In terms of impact reporting, AJA Joint Venture will report on relevant environmental metrics of the projects to which the proceeds have been allocated in line with the technical requirements.
| Project Categories | Green Building |
| Metrics | Total carbon emissions (permanent works) |
| Methodologies | CIC Carbon Assessment Tool (CAT) |
| Project Categories | Green Building |
| Metrics | Percentage of low carbon materials |
| Methodologies | BEAM PLus |
| Project Categories | Green Building |
| Metrics | Percentage of clean energy |
| Methodologies | BEAM Plus |
| Project Categories | Green Building |
| Metrics | Waste Recycling Rate |
| Methodologies | BEAM Plus |
| Project Categories | Green Building |
| Metrics | Percentage of energy consumption reduction |
| Methodologies | BEAM Plus |
| Project Categories | Green Building |
| Metrics | Percentage of water consumption reduction |
| Methodologies | BEAM Plus |
AJA Joint Venture has committed to perform allocation and impact reporting at project level annually as part of the Sustainability / Environmental, Social and Governance Report.
AJA Joint Venture has also clearly defined the key perfomance indicators applicable for the impact reporting with the underlying methodology.
| Use of proceeds | Compliant |
|---|---|
| Project evaluation and selection | Compliant |
| Management of proceeds | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2023-003, Certificate no.: SFCS-2023-003) of the CIC Sustainable Finance Certification Scheme with validity from 18-07-2023 to 17-07-2025 .