Projects

Project Information

Xi'an-Xianyang Tongchuan Environment Improvement Project

Country and Location

People's Republic of China

Project Description

The Project will finance measures to improve environmental conditions in the Xian, Xianyang and Tongchuan cities of Shaanxi Province which have a combined population of about 4.2 million. The Project will support institutional reforms for sustainable environmental management and continued progress towards market-based energy pricing, while financing investments for improving air quality. Air pollution will be reduced by (i) the replacement of old, small, inefficient boilers and domestic stoves by modern efficient cogeneration plants and district heating systems fitted with pollution control devices; (ii) the substitution of natural gas for coal burning by end users; and (iii) the reduction of particulate emissions from a large cement plant.

Total Cost

The total Project cost is estimated at US$298 million equivalent, including a foreign exchange cost of US$156 million (52.3 percent) and a local currency cost of US$142 million equivalent (47.7 percent).

Bank Assistance

The Bank will provide a loan of US$156 million to finance the entire foreign exchange costs of the six subprojects. The local currency cost of US$142 million will be financed from equity contributions by the provincial and local governments and their associated agencies (US$57 million), issue of shares by one enterprise (US$10 million), consumer contributions (US$19 million) and domestic borrowing (US$56 million).

Date of Approval

24 September 1997

Borrower

People's Republic of China

Executing Agency

The Shaanxi Provincial Government (SPG) will be the Executing Agency providing overall supervision of subproject implementation and coordination of policy and institutional measures to support the Project. Each subproject enterprise will be the Implementing Agency for its respective component.

Procurement

The equipment, materials and services financed out of the proceeds of the Bank loan will be procured through international competitive bidding or international shopping in accordance with the Bank's Guidelines for Procurement. To simplify procurement, and to ensure that the equipment supplied is compatible, maximum use will be made of single responsibility semiturnkey contracts for each subproject. Items financed with local currency funds by the enterprises such as civil works will be procured following the Government's procurement procedures acceptable to the Bank.

Technical Assistance

Capacity building for improving environmental investment planning, monitoring and management will be supported by an advisory technical assistance (TA) in the amount of US$935,000. The objective of the TA is to strengthen the capability of the Shaanxi Provincial Planning Commission and the Shaanxi Environmental Protection Bureau to plan and implement environmental improvement programs. The TA will also help ensure that lessons learned from the Project are translated into further environmental improvement investments in Shaanxi Province. It is estimated that about 11 person- months of international and 60 person-months of domestic consulting services will be required. The consultants will be recruited in accordance with the Bank's Guidelines on the Use of Consultants.

Estimated Date of Completion

30 June 2001