ADB is helping the People's Republic of China provide clean and reliable energy in Gansu province. The project will help finance the construction of a medium-sized hydropower plant in Dagushan with installed capacity of 65 megawatts in Zhangye City, as part of the Heihe river hydropower development scheme.
kilometers of transmission lines installed or upgraded
tCO2 equivalent per year in greenhouse gas emission reduction
MW installed energy generation capacity using conventional and renewable energy sources
The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.
|Project Name||MFF-Gansu Heihe Rural Hydropower Development Investment Program - Project 2: Dagushan Hydropower Project|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Private sector development
|Sector / Subsector||
Energy / Large hydropower generation
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The Investment Program will finance the construction of 2 medium-sized hydropower plants (HPPs) in the Heihe river cascade hydropwoer development scheme. The Investment Program's main impact will be to provide environmentally clean power supply in rural areas of Gansu Province.|
|Project Rationale and Linkage to Country/Regional Strategy||
PRC's sustained economic growth and low per capita energy consumption are increasing the demand for electricity, which has outpaced economic growth in the last 3 years. The result is power shortages in many parts of PRC. The power shortages have affected the rural population disproportionately. With coal-fired power plants supplying about 81% of the country's electricity, the electricity sector is a major air polluter. More than 60% of the cities do not meet air quality standards. Acid rain falls on one third of the country. The Government is committed to minimize emissions and improve air quality. In 2006, it enacted the Renewable Energy Law, which is expected to lead to about 120 gigawatts (GW) of additional clean and renewable energy in the country by 2020. Small and medium hydropower development is an integral part of the renewable energy program and is expected to provide 80 GW of the additional capacity by 2020.
In Gansu, about 81% of the electricity was produced by coal-fired power plants in 2005. Thirteen of Gansu's 14 cities do not meet air quality standards; its capital, Lanzhou, has the worst air pollution index of 47 major cities. Some parts of Gansu, such as the Hexi corridor, have faced chronic power shortages due to limited local generation capacity and large distances from nearby power plants. Heihe river, flowing in the remote mountainous areas of Zhangye, a predominantly rural area located in the middle of the Hexi corridor, presents an excellent source of clean and renewable energy closer to the power-deficient area in Gansu. ZCG and GPG are committed to utilize this clean energy source to provide benefits to Zhangye and the Hexi corridor in an environmentally sustainable manner.
ADB has an ongoing successful engagement with one of the seven HPPs of the scheme. ADB has approved a project loan in 2003 to support construction of the 102 MW Xiaogushan HPP, which was completed in July 2006, 1 year ahead of schedule. Project implementation is rated as highly satisfactory _and has complied with all loan covenants. The Project Implementing Agency, Zhangye City Government, and Gansu Provincial Government are fully familiar with ADB's requirements and have the required institutional capacity to implement the Investment Program. ADB is also supporting the development of clean and renewable energy in Gansu since 2001. The enactment of the Renewable Energy Law, and Gansu Provincial Government and Zhangye City Government's commitment to utilize clean and renewable energy in Zhangye have created the enabling conditions for accelerated hydropower development on Heihe river. ADB's previous engagement in the scheme has strengthened the rationale for the Investment Program. Considering the discrete components of the scheme, sequential construction, and staggered financing needs, the MFF is the most appropriate financing tool for the Investment Program.
|Impact||Environmentally clean power supply supporting economic growth in the rural areas of Gansu Province.|
|Description of Outcome||Reliable, clean and afforadable hydropower generation supplied to the rural consumers in Zhangye City of Gansu Province.|
|Progress Toward Outcome||Domestic physical completion acceptance was obtained in Sep 2011. Outcome being achieved towards the project completion of Dec 2012.|
|Description of Project Outputs||1. Hydropower developed - Tranche 2 (Project 2): Dagushan Hydropower Project|
|Status of Implementation Progress (Outputs, Activities, and Issues)||Acheived. Dagushan Hydropower Project was put into operation in July 2009 with 65 MW installed capacity and 259 GWh power production was achieved in 2010 which is 129% of the planned annual power generation.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The Project prvoides significant environment benefits in terms of avoided air pollution. External environmental montoring reports have been submitted on time.|
|Involuntary Resettlement||The resettlment impact is insignificant. Only a few households were affected. Lanzhou University was recruited as the external agency to monitor resettlement impact. Monitoring reports have been submitted on time.|
|Indigenous Peoples||Not applicable.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations with stakeholders, including various levels governments, implementing agencies, and beneficiaries were undertaken.|
|During Project Implementation||Consultations with stakeholders, including various levels governments, implementing agencies, and beneficiaries were undertaken.|
Procurement Method to be used when the value ($) is
QCBS Larger than 200,000
CQS Below 200,000
LCS Below 100,000
|Procurement||The PIA submitted a draft Procurement Plan consistent with the procurement threshold level agreed in the FFA. It was reviewed by ADB in June 2007 and endorsed. The advance contracting and 20% retroactive financing for both tranches in the MFF were approved by ADB.|
|Responsible ADB Officer||Liu, Xinjian|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Gansu Provincial Government
Mr. Zhu Xingjie
Qingnian East Street, Zhangye City, 734000, Gansu Province, P. R. China
|Concept Clearance||28 Apr 2006|
|MRM||06 Mar 2007|
|Approval||28 Jan 2008|
|Last Review Mission||-|
|PDS Creation Date||10 Jun 2008|
|Last PDS Update||23 Feb 2012|
|Approval||Signing Date||Effectivity Date||Closing|
|28 Jan 2008||04 Mar 2008||27 Jun 2008||31 Dec 2012||-||13 Mar 2012|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||60.88||Cumulative Contract Awards|
|ADB||28.00||28 Jan 2008||28.00||0.00||100%|
|Cofinancing||0.00||28 Jan 2008||28.00||0.00||100%|
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.
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|Title||Document Type||Document Date|
|Gansu Heihe Rural Hydropower Development Investment Program - Project 2: Dagushan Hydropower Project||Project/Program Completion Reports||Apr 2013|
|Loan Agreement for Gansu Heihe Rural Hydropower Development Investment Program - Dagushan Hydropower Project between People's Republic of China and Asian Development Bank dated 4 March 2008||Loan Agreement (Ordinary Resources)||Jan 2008|
|Project Agreement for Gansu Heihe Rural Hydropower Development Investment Program||Project/Program Agreements||Jan 2008|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
|Title||Document Type||Document Date|
|Gansu Heihe Rural Hydropower Development Investment Program - Dagushan Hydropower Program (Chinese Translation)||Environmental Monitoring Reports||Dec 2011|
|Gansu Heihe Rural Hydropower Development Investment Program - Dagushan Hydropower Project||Environmental Monitoring Reports||Mar 2011|
|Gansu Heihe Rural Hydropower Development Investment Program: Dagushan Hydropower Project||Social Monitoring Reports||Dec 2010|
|Gansu Heihe Rural Hydropower Development Investment Program - Project 2: Dagushan Hydropower Project||Resettlement Plans||Oct 2007|
|Gansu Heihe Rural Hydropower Development Investment Program - Project 1: Erlongshan Hydropower Project and Project 2: Dagushan Hydropower Project (Revised)||Resettlement Plans||Nov 2006|
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|People’s Republic of China: Gansu Heihe Rural Hydropower Development Investment Program – Dagushan Hydropower Project||Validations of Project Completion Reports||Jun 2014|
None currently available.
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