China, People's Republic of: Promoting Energy Conservation in Tianjin

Sovereign Project | 43052-012

Summary

The TA will assist the Tianjin Municipal Government (TMG) achieve its goal of having in place a sustainable mechanism for promoting energy conservation technologies and providing suitable financing and rationalize the various energy conservation technologies available and customize them for energy-intensive industrial sectors. TMG needs support in the following areas: (i) acquiring knowledge on international and national best-practice technologies for energy conservation in these industries and their processes; (ii) performing energy audits and establishing an energy conservation platform (ECP) that will develop a database integrating both supply and demand data, and provide guidance on the technologies best suited to these industries; (iii) identifying and designing suitable financing instruments for required investments; (iv) promoting energy conservation awareness among industrial enterprises; and (v) developing capacity.

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Project Name Promoting Energy Conservation in Tianjin
Project Number 43052-012
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7640-PRC: Promoting Energy Conservation in Tianjin
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Energy efficiency and conservation
Gender Equity and Mainstreaming No gender elements
Description The TA will assist the Tianjin Municipal Government (TMG) achieve its goal of having in place a sustainable mechanism for promoting energy conservation technologies and providing suitable financing and rationalize the various energy conservation technologies available and customize them for energy-intensive industrial sectors. TMG needs support in the following areas: (i) acquiring knowledge on international and national best-practice technologies for energy conservation in these industries and their processes; (ii) performing energy audits and establishing an energy conservation platform (ECP) that will develop a database integrating both supply and demand data, and provide guidance on the technologies best suited to these industries; (iii) identifying and designing suitable financing instruments for required investments; (iv) promoting energy conservation awareness among industrial enterprises; and (v) developing capacity. TMG has sought ADB assistance to analyze these issues, and develop a systematic energy conservation mechanism and comprehensive ECP that can serve the growing needs of the municipality and its neighboring areas in the Bohai Rim region. The TA can provide a potent tool for TMG and the industry participants to determine and realize the large potential for energy conservation by selecting the most suitable technologies, matching them with innovative financing tools and financing sources, and monitoring and verifying them through a best-practice regulatory regime.
Project Rationale and Linkage to Country/Regional Strategy

ADB's Long-Term Strategic Framework 2008 2020 (Strategy 2020) identified achieving environmental sustainability as a priority, with energy as a core operational sector. New initiatives (e.g. Clean Energy Financing Partnership Facility) have been introduced to augment its assistance to developing member countries for acquiring low-carbon technologies and implementing energy efficiency projects. ADB's country partnership strategy for the PRC also emphasized balanced and sustainable growth with more efficient uses of resources and more stringent protection of the environment. One of the key priorities of the 11th Five-Year Plan (FYP) of the PRC is to improve energy efficiency by 20%, which is a flagship program of the PRC to address climate change and environmental challenges due to rapid economic growth. The TA has a close fit with both ADB's and PRC's priorities.

During the CPM in late 2009, the PRC delegation requested ADB to provide this technical assistance (TA) for Tianjin to support its energy conservation development. A reconnaissance mission (the Mission) from ADB visited Tianjin during 15-16 April 2010 to discuss with TMG officials the relevant details of the proposed TA. The EC Platform that will be developed as a main output will focus on the six key energy intensive industries. The Mission and the municipal government agencies agreed on the components of the EC Platform, and reached a common understanding on the impact, outcome, scope of work and outputs, key activities and implementation arrangements of the TA.

Tianjin's economic development has been energy intensive. Total energy consumption in 2008 was 53.6 million tons of coal equivalent (tce) up 8.5% from 49.4 million tce in 2007. But energy intensity has dropped gradually as Tianjin adjusted its industry structure and phased out old production facilities. In 2008, Tianjin's energy intensity was 0.95 tce per CNY10,000 GDP, down 6.8% from 1.02 tce in 2007. This is about 13.8% lower than the national average (1.102 tce in 2008). Tianjin ranked 8th among 30 provinces and municipalities. Sulfur dioxide (SO2) emission was also reduced, from 244,700 tons in 2007 to 240,100 tons in 2008, and chemical oxygen demand (COD) fell from 137,300 tons to 133,100 tons. In 2009, energy intensity was down 6% from 2008, while SO2 and COD dropped 1% each. Expected energy intensity reduction in 2010 is 4%.

Major industries operating in Tianjin are petrochemicals, machinery, car manufacturing, electronics, mechanical industries, and textile. Tianjin's rapid industrial development and urbanization, if left unmanaged, could result in energy supply problems, severe air and water pollution, and environmental degradation that could badly affect its 11.8 million population. TMG recognizes that the municipality's present growth trajectory for energy and related emissions is unsustainable and has initiated plans toward energy conservation. Tianjin's target is aligned with the national target, which is to achieve energy intensity reduction of 20% per unit of GDP by 2010, and emission intensity reduction of 40-45% per unit of GDP by 2020, taking 2005 as the baseline. Considering Tianjin's heavy-industry-based economic structure, these are huge challenges for TMG.

To overcome these challenges, TMG has developed an overall action plan that includes conserving energy, optimizing the industry structure, phasing out old production lines, and diversifying the energy mix.

Impact Greater energy conservation and emission reduction in Tianjin municipality
Project Outcome
Description of Outcome Stronger capacity to plan and implement energy conservation and emission reduction projects in Tianjin's industrial sector
Progress Toward Outcome The energy conservation platform consisting of energy consumption data will enhance the capacity of Tianjin government to implement and monitor energy conservation and emission reduction projects. The platfrom also contains information and relevant details of energy conservation technologies that are relevant to energy intensive industries in Tianjin. The demonstration energy conservation projects identified under the TA will also facilitate technology transfer.
Implementation Progress
Description of Project Outputs

Review and analysis of international and national proven energy conservation technologies and their possible applications in the selected industries

Development of strategy and action plan for implementation of energy conservation through the Energy Conservation Platform

Establishment and implementation of an Energy Conservation Platform

Selection of priority pilot projects

Capacity development and information dissemination

Status of Implementation Progress (Outputs, Activities, and Issues) The energy conservation platform consisting of energy consumption data will enhance the capacity of Tianjin government to implement and monitor energy conservation and emission reduction projects. The platfrom also contains information and relevant details of energy conservation technologies that are relevant to energy-intensive industries in Tianjin. The demonstration energy conservation projects identified under the TA will also facilitate technology transfer.
Geographical Location Tianjin Municipality
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Various aspects of the TA design and implementation were discussed with the EA. The TA impact, outcome, scope and outputs and implementation arrangements were also agreed. The name of the TA was changed to Promoting Energy Conservation in Tianjin from the earlier title of Promoting Energy Conservation in the Binhai District of Tianjin.
During Project Implementation The TA's impact, outcome, outputs and deliverables together with the schedules, were presented and agreed to during the inception meeting. Availability of counterpart staff, working area and support facilities, existing database, and other input information for the ECP were confirmed by the EA. Clarifications on the required outputs and expectations, performance indicators, and the TOR for the TA and the experts were made.
Business Opportunities
Consulting Services The TA will require a total of 5 person-months of international and 14 person-months of national consulting services. The details of consultants' expertise and composition will be firmed up during the fact-finding mission. The international and national experts will be engaged by ADB through a consulting firm using simplified technical proposal procedures based on the quality- and cost-based selection method (with quality-cost ratio of 80:20) and in accordance with ADB's Guidelines on the Use of Consultants (February 2007, as amended from time to time). Survey and system development firms will be recruited and included as part of the consultant's contract. Procurement of equipment, supplies, and materials by consultants under the TA will follow ADB's Procurement Guidelines (2007, as amended from time to time). Equipment purchased under the TA will be turned over to the EA and IA after completion of the TA. Disbursements under the TA will be done in accordance with the ADB's Technical Assistance Disbursement Handbook (January 2008, as amended from time to time).
Procurement Procurement of equipment, supplies, and materials by consultants under the TA will follow ADB's Procurement Guidelines (April 2010, as amended from time to time). Equipment purchased under the TA will be turned over to the executing agency after completion of the TA.
Responsible ADB Officer Pradeep Perera
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Tianjin Science and Technology CommissionMunicipal People's Government Division
of Hi-Tech & Industrialization
287 Heping Road, Tianjin 300041, P.R.C.
Timetable
Concept Clearance 18 Jun 2010
Fact Finding 11 Aug 2010 to 13 Aug 2010
MRM -
Approval 10 Nov 2010
Last Review Mission -
PDS Creation Date 26 Jul 2010
Last PDS Update 30 Sep 2013

TA 7640-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Nov 2010 07 Dec 2010 07 Dec 2010 30 Jun 2012 30 Jun 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 200,000.00 0.00 0.00 0.00 600,000.00 10 Nov 2010 397,087.50

Safeguard Documents

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Evaluation Documents

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