Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 10 Mar 2006
PDS Updated as of 21 Oct 2013

Project Name Coal Mine Methane Development Project
Country China, People's Republic of
Project/Program Number 30403-013
Status Approved
Geographical Location Shanxi Province
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Energy
/ Conventional Energy
Strategic Agendas
Drivers of Change
Gender Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2146Ordinary capital resources117,400
Counterpart 119,600
TOTAL US$ 237,000

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment B
Involuntary Resettlement B

Summary of Environmental and Social Issues

The construction of the CMM development project will affect 262 households or 999 persons, according to the resettlement plans. In total, 29.49 hectares (ha) will be permanently acquired of which 9.07% or 20.37 ha is a farmland. The CMM development project will also require a temporary acquisition of 308.69 ha of land and lease of 9.36 ha. About 6,135 sq. m. of houses will be demolished. The total cost for land acquisition and resettlement is estimated at $9.49 million in 2004 prices.

Environmental Aspects
SPG and the Project Implementing Agencies shall ensure that the design construction, and operation of all Project facilities comply with the environmental laws and regulations of the Borrower (whether enacted at national, provincial or municipal level), and with ADB's Environment Policy (2002).
Involuntary Resettlement
SPG and JMC shall ensure that all resettlement, including compensation and entitlements for affected persons, will be implemented in a proper and timely manner in accordance witht the relevant resetllement plan and agreed upon with ADB. Resettlement under the Project shall comply with all applicable laws and regulations and accord with ADB's Involuntary Resettlement Policy (1995). SPG and JMC , through the PMO shall submit semiannual progress reports to ADB on implementation of the resettelment plan
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation

Description

The main objective of the Project is to establish a CMM demonstration project that covers all aspects of effective and efficient CMM and CBM production, capture, and utilization by applying the latest technologies, i.e., improved CBM production from vertical surface wells and directionally drilled wells from the surface, improved CMM drainage through the use of underground directional drilling and other modern equipment and materials, CMM-based power generation using gas engines, and transmission and distribution of CMM for residential, commercial, and industrial use. In this manner the Project will also contribute to improving mine safety, reduce GHG emissions, and improvement of the environment. Part A of the Project is to demonstrate the more efficient production of CBM, drainage and capture of CMM, and their use for power generation as a least-cost alternative using new technologies; Part B of the Project is to demonstrate the efficient use of CMM on a commercial basis for transmission and distribution to consumers; and Part C of the Project is to provide institutional strengthening to the concerned companies involved in the Project and promote the establishment of similar projects in the PRC.

Project Rationale and Linkage to Country/Regional Strategy

The PRC accounts for about 40 percent of global methane emissions which are, among others, the result of methane gas emissions associated with coal mining activities in the PRC. Methane is a potent greenhouse gas and more efficient drainage of CMM and its use for power generation will help reduce the build-up of greenhouse gases in the atmosphere.

Development Impact

Reduced green house gas emissions in Shanxi Province

Project Outcome

Description of Outcome
Increased supply and use of CMM and CBM for power generation and residential, commercial and industrial consumers
Progress Towards Outcome
--

Outputs and Implementation Progress

Description of Project Outputs
Increased CMM and CBM production (JMC) New electric power generating capacity and connection to electricity transmission grid (JMC) Expanded CMM transmission network (SECC) Expanded CMM distribution network (JCCUC) Improved conditions for development of projects for CMM and CBM production and use
Status of Implementation Progress (Outputs, Activities, and Issues)
Part A- Construction activities and installation of all the equipment and accessories associated with the power plant have been completed. The power plant was connected to the Shanxi power grid on 28 Mar 08 and on 3 Oct 08 passed the trial run tests requirements of the Shanxi Power Company. The Shanxi Provincial Development Reform Commission granted its final approval for completing the project requirements for operations on 9 February 2009 and on 5 July 2009 the power plant was put into commercial operations. JMC had turned over the project facilities to the new company established for the operation of the power plant. Part B- All civil works and equipment installation have been completed for the Zhanglin gas transmission station as of end September 08. Construction work at the 4 gas collection stations (Gaozhuang [main station], Pingshang, Duanshi and Chengzhuang). In Yangcheng Industrial Zone station, all works have been completed. For Yangcheng station however, no material progress has been reported as construction work has to coincide with the construction schedule of Yangcheng Minsheng Gas Company since the station will be at the latter's premises. Equipment for the station was purchased through the ADB loan. Installation cost will be financed from counterpart funds. All pipelaying activities have been completed. Distribution component for the Jincheng city has progressed well. Construction of the 50,000 m3 and the 80,000 m3 storage tanks and distribution stations, including the laying of medium pressure pipelines were completed and accepted in September 08 and on 18 Oct 08, the project was put in operation and began supplying gas to the city. The components for the 3 counties (Gaoping, Yangcheng, and Qinshui) have also progressed and in the final stages of completion. Lingchuan had dropped out of construction and ADB loan utilization due to funding problems, but has since completed its project scope with support from private investors. The Project won the 2009 China Habitat Environment Prize awarded by the Ministry of Housing and Construction and was nominated for the Dubai International Award for best practices to improve the living environment. Part C- Institutional Strengthening: Completed.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Mar 10
Consulting Services
ADB-financed consulting services will assist the project implementing agencies with (i) supervision of CMM drainage and CBM production, (ii) management and implementation of CMM transmission and distribution pipeline system component, (iii) institutional strengthening and capacity building, and (iv) promoting the development of additional CBM and CMM projects in Shanxi Province and will be carried out in accordance with ADB's Guidelines on the Use of Consultants.
Procurement
Procurement of ADB-financed goods including (i) internal combustion gas engines and auxiliary equipment, (ii) gas transmission and distribution pipelines, (iii) operation and maintenance equipment for gas pipelines, (iv) pressure regulating equipment, (v) transformers, and (vi) gas storage tanks will be carried out in accordance with ADB Guidelines for Procurement.
Procurement and Consulting Notices
http://www.adb.org/projects/30403-013/business-opportunities

Timetable

Concept Clearance
Fact-finding 08 Sep 2003 to 26 Sep 2003
Management Review Meeting 23 Feb 2004
Approval 20 Dec 2004
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 2146 20 Dec 2004 24 Mar 2005 04 Oct 2005 30 Jun 2009 31 Dec 2010 28 Jan 2011

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
31 Jul 2014 Loan 2146 105,443 0 92.00%
Cumulative Disbursements
31 Jul 2014 Loan 2146 114,636 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 2146 Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory

Contacts and Update Details

Responsible ADB Officer Edu H. Hassing ( @adb.org)
Responsible ADB Department East Asia Department
Responsible ADB Divisions Energy Division, EARD
Executing Agencies Shanxi Provincial Government
Ms. Wang Hongya

Links

Project Website http://www.adb.org/projects/30403-013/main
List of Project Documents http://www.adb.org/projects/30403-013/documents