Projects

Project Information

Wind Power Development Project

Country and Location

People's Republic of China - Dabancheng, Xinjiang Uygur Autonomous Region; Fujin; Heilongjiang Province; and Xiwaizi, Liaoning Province

Borrower

People's Republic of China

Date of Approval

20 December 2000

Project Description

The Project will help develop the PRC's renewable energy resources by financing the construction of three grid-connected wind farms with a total power generation capacity of 78 megawatts (MW). These include one wind farm at Dabancheng in the Xinjiang Uygur Autonomous Region (30 MW); one wind farm at Fujin in Heilongjiang Province (24 MW); and one wind farm at Xiwaizi in Liaoning Province (24 MW). The project will also provide assistance for barrier removal and institutional strengthening to promote wind-based power generation in the autonomous region and the two provinces.

Total Project Cost

The estimated total cost of the Project is US$98 million equivalent comprising US$69 million (70 percent) in foreign exchange cost and US$29 million equivalent (30 percent) in local currency.

Loan Amount

ADB will provide a loan of US$58 million and the Global Environment Facility (GEF) a zero-interest loan of US$6 million to finance the foreign exchange cost of the construction of the wind farms. The GEF loan will be provided under a joint cofinancing arrangements with ADB. GEF will also provide a grant of US$6 million to finance consulting services for project implementation, barrier removal, and institutional strengthening. Both the GEF loan and the grant will be administered by ADB.

Executing Agency

The respective provincial power companies will be the Executing Agencies for the Project: the Xinjiang Electric Power Company Ltd for the wind farm at Fujin, and the Liaoning Electric Power Company Ltd for the wind farm at Xiwaizi. The Executing Agency for the assistance for barrier removal and institutional strengthening will be the State Development and Planning Commission in cooperation with the Ministry of Finance and the State Power Corporation.

Procurement

The equipment, materials, and services financed from the proceeds of the ADB loan and the GEF loan will be procured in accordance with ADB's Guidelines for Procurement. It is envisaged that the wind turbines and towers will be procured on the basis of a separate engineering, procurement and construction (EPC) contract for each wind farm following international competitive bidding among pre-qualified bidders.

Auxiliary goods estimated to cost the equivalent of US$500,000 or less will be awarded on the basis of international shopping. Items financed with local currency funds by the Executing Agencies will be procured following local competitive bidding acceptable to ADB.

Consultants

International consulting services for 30 person-months will be provided to assist (i) the Executing Agencies in preparing tender documents for procurement and supply of wind turbines and towers through EPC contracts, and the wind farm companies with supervising construction and commissioning of their wind farms. Domestic consulting services of about 190 person-months and international consulting services of about 70 person-months will be engaged for the assistance for barrier removal and institutional strengthening. All consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants on other arrangements for the selection and engagement of domestic consultants.

Estimated Project Completion Date

31 December 2003