China, People's Republic of: Integrated Renewable Biomass Energy Development Sector Project (formerly Rural Energy and Ecosystem Rehabilitation (Phase II))

Sovereign Project | 40682-013 Status: Active

Summary

ADB is supporting the People's Republic of China's drive to expand the use of biogas energy. The project will help construct biogas plants in poor rural areas of Heilongjiang, Henan, Jiangxi, and Shandong provinces. It will introduce high-temperature flare technology to minimize methane gas emissions from the plants and support effective use of biogas sludge in eco-farming.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Integrated Renewable Biomass Energy Development Sector Project (formerly Rural Energy and Ecosystem Rehabilitation (Phase II))
Project Number 40682-013
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0202-PRC: Integrated Renewable Biomass Energy Development Project
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 3.00 million
Grant 0203-PRC: Integrated Renewable Biomass Energy Development Project
Global Environment Facility US$ 9.20 million
Loan 2632-PRC: Integrated Renewable Biomass Energy Development Sector Project (formerly Rural Energy and Ecosystem Rehabilitation (Phase II))
Ordinary capital resources US$ 66.08 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector

Agriculture, natural resources and rural development - Agro-industry, marketing, and trade

Energy - Renewable energy generation - biomass and waste

Gender Equity and Mainstreaming Some gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome -- Construction of 62 MLBGPs have started. Up to now, the construction of 42 MLBGPs has practically been completed . Among which, 5 out of 7 (planned total) centralized biogas plants supported by GEF have started construction. 2 MLBGPs have achieved grid connections and started electricity generation. It is noted that there has been additional 30 projects that have been dropped out since the loan review mission in 2014, and the total number has been reduced from 99 to 62 sub-projects.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues) Has been reduced to 62 MLBGPs. Up to now, the construction of 42 MLBGPs has practically been completed. Among which, 5 out of 7 (planned total) centralized biogas plants have started construction. The volume of digesters in total reached 60,525 m3, the volume of biogas holders reached 16,227 m3 in total and the capacity of generators reached 4,605Kw. By the end of 2015, there are about 29 tons of biogas sludge being used, reducing the chemical fertilizer usage by farmers in JX. SD has finished 241.2 Mu of the eco-farming construction. HN has started 700 Mu of the eco-farming construction. It is expected that about 85% of biogas plants supply sludge to nearby farms as organic fertilizer and reduce the use of chemical fertilizer by 50% by the end of 2016.
Geographical Location The project provinces include Heilongjiang, Henan, Jiangxi, and Shandong

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

The Project is expected to produce a number of environmental benefits. Each year, the Project will reduce about 7.44 million tons of livestock and agroprocessing waste; and produce about 77 million m3 of biogas, which can be used for electricity, cooking, and heating; and replace fossil fuel or fuelwood. The subprojects will also produce about 5.09 million tons of organic fertilizers for eco-farming each year, which will help sequestrate carbon in the soil humus and improve soil fertility. The Project is estimated to result in an annual GHG reduction of 1 million tons of CO2 equivalent because of the reduction of methane emissions from livestock farms and replacement of fossil fuel by methane gas. Subprojects that qualify for CDM financing will avail of CER revenues.

Only minor construction and operational impacts are expected, which can be mitigated or prevented to acceptable levels by applying adequate construction and maintenance practices. Possible adverse environmental impacts during construction and operation of the subproject facilities including soil erosion, surface runoff and foul odor from application of biogas residues, noise, and fire hazards may arise, but they are expected to be localized and temporary. Mitigation measures, institutional arrangements, environmental monitoring and management mechanisms, capacity development, and public consultations have been proposed. The adverse environmental impacts are assessed to be insignificant.

Involuntary Resettlement All subprojects will take place within the existing land owned by the agro-enterprises. Hence, no land acquisition and resettlement is required.
Indigenous Peoples No subproject is located in a minority autonomous area, and no ethnic minorities were identified in the subproject sites. Therefore, no risks are envisaged to indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design The project will help about 118 livestock farms and agro-enterprises improve their waste treatment to meet national standards. In addition, about 65,200 households, of which about 4,500 are poor households, will benefit from improved environmental and health conditions. About 7.0 million tons of waste will be treated, and about 92 million kilowatt-hours of electricity and an equivalent amount of heat energy will be produced and used each year, which will save about 76,000 tons of coal. About 1,500 poor households will have access to cheaper electricity. The project will also contribute to the reduction of methane gas, a GHG, by about 1 million tons of carbon dioxide equivalent each year. About 4,900 temporary jobs will be created during construction, increasing people's income by CNY4,000 on average; and over 1,400 new jobs will be generated during biogas plant operation, with a per capita income of about CNY13,000. About 9,000 poor households will use the organic fertilizers from the biogas plants and benefit from savings on chemical fertilizers and incremental revenue from the sales of organic products from eco-farming. The agro-enterprises' production capacity is also expected to expand after the completion of the biogas plants and will benefit over 27,000 new contract farmers from the sales of livestock to these enterprises. Each contract farmer's annual household income could be as high as CNY44,200, compared with breeding farmers' average household income of CNY16,500. The project will also provide clean energy to about 41,000 households and improve their energy consumption by replacing straw, wood, or coal, which will protect the environment and reduce women's workload and health hazards. Some enterprises plan to supply low-priced electricity and gas to neighboring villagers, which will improve farmers' access to energy.
During Project Implementation Public consultation and participation, which have been key elements of the project design, will continue during the project implementation, monitoring, and evaluation. Through continued consultation and participation, the project aims to (i) meet the evolving needs and expectations of the beneficiaries, (ii) increase the awareness of the public about the benefits of the project, (iii) encourage the active involvement of local communities to maximize their support for the project, and (iv) raise the social acceptance of the project.

Business Opportunities

Consulting Services The consultants will be recruited in line with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time).
Procurement All procurement of goods and works will be carried out following ADB's Procurement Guidelines (2007, as amended from time to time). Each subborrower will engage the services of a qualified tendering agency to carry out the procurement under the supervision and guidance of the respective PIO.

Responsible Staff

Responsible ADB Officer Lanlan Lu
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Ministry of Agriculture
11 Nong Zhan Guan
Nan Li, Beijing
People's Republic of China
Department of Agriculture-Heilongjiang Province
Liu Changjun
HLJXGK@126.COM
No. 204, Rd. ZhongShan, Harbin City,
Heilongjiang Province, PRC
Dept of Agriculture-Shandong Provincial Department
Li Yiguo
ZHANGDEXIN@SDNY.GOV.CN
No. 07 Main Street East, Shi Mu Yuan
Lixia District, Jinan City, Shandong
Province, PRC
Department of Agriculture-Henan Provincial Environ
Luo Shifeng
LUOSF0109@163.COM
No. 27 Nongye Road, Zhengzhou City,
Henan Province, PRC
Dept of Agriculture-Foreign Office of Jiangxi Prov
Cai Xunzhi
GUINHUAKE@YAHOO.COM.CN
No. 02 Provincial Government Dayuan Rd.
East, Beijing Rd. West Nanchang, Jiangxi
Province, PRC

Timetable

Concept Clearance 06 Mar 2009
Fact Finding 02 Mar 2009 to 06 Mar 2009
MRM 04 Jun 2009
Approval -
Last Review Mission -
PDS Creation Date 02 Apr 2009
Last PDS Update 30 Mar 2016

Grant 0202-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Apr 2010 30 Jun 2010 27 Oct 2010 30 Jun 2016 31 Dec 2017 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.00 Cumulative Contract Awards
ADB 0.00 16 Apr 2010 0.00 2.06 69%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.00 16 Apr 2010 0.00 0.91 30%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Grant 0203-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Apr 2010 30 Jun 2010 27 Oct 2010 30 Jun 2016 31 Dec 2017 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 9.20 Cumulative Contract Awards
ADB 0.00 16 Apr 2010 0.00 4.19 46%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 9.20 16 Apr 2010 0.00 1.89 20%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan 2632-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Apr 2010 17 Jun 2010 15 Oct 2010 30 Jun 2016 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 135.74 Cumulative Contract Awards
ADB 66.08 16 Apr 2010 43.03 0.00 65%
Counterpart 69.66 Cumulative Disbursements
Cofinancing 0.00 16 Apr 2010 29.20 0.00 44%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

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
IRBEDP - Jiangxi Province Noncore Subproject - Xiangxin Animal Husbandry Co., Ltd (Yujiang County): Summary Initial Environmental Examination Summary Initial Environmental Examination Nov 2014
Integrated Renewable Biomass Energy Development Sector Project: Summary Initial Environmental Examination Summary Initial Environmental Examination Sep 2014
IRBEDP - Jiangxi Province Noncore Subproject -Taihua Livestock Industry Company: Summary Initial Environmental Examination Summary Initial Environmental Examination Aug 2014
IRBEDP - Jiangxi Province Noncore Subproject - Xinglong Livestock Industry Development Co., Ltd: Summary Initial Environmental Examination Summary Initial Environmental Examination Aug 2014
IRBEDP - Jiangxi Province Noncore Subproject - Jiangxi Huanxin Eco-farming Tech. Shareholding Co., Ltd: Summary Initial Environmental Examination Summary Initial Environmental Examination Oct 2013
Integrated Renewable Biomass Energy Development Project: Non-core Subprojects of Jiangxi Province Summary Initial Environmental Examination Jul 2012
IRBEDP - Henan Province Non-core Subproject: Beixu Group Co.,Ltd (Linying County) Summary Initial Environmental Examination Summary Initial Environmental Examination Apr 2009
Integrated Renewable Biomass Energy Development Project: Non-core Subprojects of Henan Province Summary Initial Environmental Examination Mar 2009
Integrated Renewable Biomass Energy Development Project: Non-core Subprojects of Heilongjiang Province Summary Initial Environmental Examination Mar 2009
Integrated Renewable Biomass Energy Development Project: Non-core Subprojects of Shandong Province Summary Initial Environmental Examination Mar 2009
Integrated Renewable Biomass Energy Development Project Summary Initial Environmental Examination Dec 2008

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications


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