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 23 Jun 2006
PDS Updated as of 10 Jun 2008

Project Name Gansu Clean Energy Development Project
Country China, People's Republic of
Project/Program Number 34476-013
Status Approved
Geographical Location Gansu Province (Zhangye)
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 Energy
Subsector Energy Efficiency and Conservation
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2032-0
TOTAL US$ 0

Safeguard Categories

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

Environment A

Summary of Environmental and Social Issues

The environmental impact assessment (EIA) were prepared and approved by ADB and State Environment Protection Agency (SEPA). The Project will improve the efficiency and reliability of the electricity supply and will have significant positive environmental impacts in terms of avoided air pollution from alternative energy sources. The avoided emissions were estimated at a yearly average of 240 tons, 1,910 tons, 1,500 tons, and 366,000 tons of particulate matter, sulfur dioxide, nitrogen oxides, and carbon dioxide, respectively. The negative environmental impacts are minimal and can be mitigated. The improved reliability of electricity in the project area, ecosystem rehabilitation and expansion, and economic and social improvements will enhance the net environmental benefits from the Project. Semi-annual environmental monitoring reports are being submitted to ADB on time. The Project construction will have minor and very localized impacts on two villages in Xishui township. The Project will permanently occupy 28 hectares (ha) of land, most of which is wasteland and about 10 ha is grassland. Only two households (17 people) will be affected by permanent loss of grassland rights, animal sheds, or trees, for which compensation has already been paid. The Project will also temporarily occupy 26.7 ha (mostly wasteland and some grassland) for construction camps, borrow areas, spoil areas, and temporary work areas. Four households (12 people) will be compensated for temporary losses. A short resettlement plan has been prepared by XHC. The resettlement monitoring reports are being submitted to ADB. A Community Development Strategy and Plan (CDSP) was formulated and is under implementation.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

Stakeholder consultations were conducted with local government officials, selected households, schools, local enterprises, and electricity distribution companies.

During Project Design
During Project Implementation

Description

The main objective of the Project is the improved environment in the Zhangye city. The Project targets the Hexi grid in terms of electricity provision, and the townships of Xishui, Huazhai, and Anyang for rural electrification. The Project also aims to provide support for institutional strengthening in implementing agency. The Project consists mainly of (i) a 102 MW run-of-river Xiaogushan Hydropower Plant; (ii) two 35 kV line to improve rural electrification; and (iii) institutional strengthening.

Project Rationale and Linkage to Country/Regional Strategy

Coal-fired thermal power plants are the main source of energy. Gansu province is developing several clean energy development initiatives, covering the full spectrum of renewable energy technologies. However, clean energy production remains unevenly distributed in the Province. Zhangye city, which is about 600 km from the provincial capital of Lanzhou, experiences frequent interruptions and shortages in electricity supply. The Zhangye city electric network is part of the Hexi corridor network which in turn is a part of the Gansu and North-west power network. The installed capacity in Zhangye city and in the Hexi grid is too small to meet the current peak load demand and most of the power stations are small in size. In 2001, the Zhangye network had load-shedding for 1,975 gigawatt-hour (equivalent to 3,198 megawatt hours of unserved energy). The current installed capacity in Zhangye is 94.5MW whereas peak demand is almost 200MW. The Hexi corridor grid has installed capacity of 475MW against its peak demand of 850MW. Zhangye city is importing more than 80% of its electricity demand of about 900 million kilowatt hours from the Hexi corridor network. The power situation in Zhangye city is expected to become worse as projected electricity demand is increasing but no new generating plants are expected to become operational. Power shortage is a key inhibiting factor for economic development of the area. Zhangye city's 2000 total population was 1,257,600 of which 983,206 are classified as rural. Of the rural population, 269,452 or 27.4% fell under the provincial rural poverty line of CNY 1,100. The Project has been designed to address these issues. Hydropower development and rural electrification can increase power generation, improve the efficiency and reliability of supply of electric power, and improve environmental quality. These will reduce poverty directly and indirectly and accelerate economic growth. To maximize the poverty reduction impacts of the resulting increase in generation and improvement in energy efficiency and reliability, the improvement of social services will be included to achieve an integrated approach to poverty reduction. The Project is consistent with the 10th Five-Year Plan which calls for clean energy in energy sector restructuring, and the Government's plan to accelerate economic development of Zhangye city by providing reliable electricity supply to local agriculture and cottage industry sectors, and to reinforce the power availability and reliability in the electricity grid.

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Jun 23
Consulting Services
International and domestic consultants financed under the loan will be recruited in accordance with ADB's Guidelines on the Use of Consultants. The Project will provide 37 person-months of international consultants of which 10 are for supervision of civil works, 6 person-months for supervision of installation, 4 person-months for socio-economic and poverty reduction impact monitoring and evaluation, 6 person-months for environmental monitoring, 3 person-months for financial management, and 8 person-months for institutional strengthening. Additional domestic consultants will be financed by domestic financing, following either ADB recruitment procedures or government procedures acceptable to ADB. It is estimated that about 1,250 person-months of domestic consultants will be required. XHC will establish about five resident supervision engineer offices for construction supervision, environmental monitoring, socio-economic and poverty monitoring, project performance monitoring and evaluation.
Procurement
Equipment, materials, and services financed from the proceeds of the ADB loan will be procured in accordance with ADB's Guidelines for Procurement. Items financed with local funds will be procured following local competitive bidding acceptable to ADB. Advance procurement action has been requested by the EA.
Procurement and Consulting Notices
http://www.adb.org/projects/34476-013/business-opportunities

Timetable

Concept Clearance 13 Jul 2000
Fact-finding 15 Jan 2003 to 24 Jan 2003
Management Review Meeting 13 May 2003
Approval 05 Dec 2003
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 2032 05 Dec 2003 27 Apr 2004 04 Aug 2004 30 Apr 2008 02 Sep 2008

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
21 Oct 2014 Loan 2032 30,818 0 91.00%
Cumulative Disbursements
21 Oct 2014 Loan 2032 34,036 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 2032

Contacts and Update Details

Responsible ADB Officer Xinjian Liu (xinjianliu@adb.org)
Responsible ADB Department East Asia Department
Responsible ADB Divisions Energy Division, EARD
Executing Agencies Gansu Provincial Government
Mme. Zhang Xiaoping

Links

Project Website http://www.adb.org/projects/34476-013/main
List of Project Documents http://www.adb.org/projects/34476-013/documents