China, People's Republic of: Shanxi Energy Efficiency and Environment Improvement Project

Sovereign Project | 44013-013 Status: Active

Summary

ADB is helping expand energy-efficient centralized heating to more than 270,000 residents in five highly polluted urban areas of Shanxi province in the People’s Republic of China. The project will replace small coal-fired boilers and coal-fired household stoves with highly energy-efficient combined heat and power plants and large heat boilers, and expand the coal-mine methane gas supply network.

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 Shanxi Energy Efficiency and Environment Improvement Project
Project Number 44013-013
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2885-PRC: Shanxi Energy Efficiency and Urban Environment Improvement Project
Ordinary capital resources US$ 100.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Energy - Energy utility services

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome Being achieved.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Project implementation is on track. Culmulative CA amounted to $92.5 million and disbursements reached $80.2 million as of 29 March 2015.

The PMO has managed to achieve significant progress in project implementation in the absence of loan financed consultant, by mobilizing other resources.

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The project results in substantial environmental benefits by improving energy efficiency and avoiding combustion of 85,390 tons of coal per year, resulting in emission reductions of 4,121 tons of SO2, 16,234 tons of total suspended particulates, 1,942 tons of NOx, and 254,379 tons of CO2. The potential adverse environmental impacts from the project include (i) during construction: noise, soil erosion, and safety risks to community members and workers, including fire and explosion risks posed by working with CMM; (ii) during operation: (a) inappropriate handling of waste when decommissioning small boilers; (b) untreated wastewater, solid and hazardous wastes; (c) noise and air pollution from boiler stacks and from coal handling, gas emissions and safety risks. The initial environmental examination (IEE) concludes that the potential adverse environmental impacts can be adequately mitigated by measures outlined in the IEE, and the project will result in environmental and socioeconomic benefits that significantly outweigh potential negative impacts. The project fully complies with ADB's information disclosure and consultation requirements.
Involuntary Resettlement

The gas storage site has been changed and the local goverment has allocated a government owned land which had not been used by the local people for past 10 yeaqrs. Hence, land acquisition will no longer be requiredin Luilin and the resettlement plan prepared during project appraisal is no longer relevant. A due diligence report on the new site will be prpared and uploaded to confirm that it does not entail any resettlement impacts. The other sub projects do not entail any resettlement impacts.

The other subprojects entail no land acquisition, restriction in land use, or structure demolition, as they will be implemented on government land or existing premises. Hence, the resettlement plan prepared for Luilin sub project will not be implemented and a due diligence report

Indigenous Peoples No indigenous peoples will be adversely affected by the project.
Stakeholder Communication, Participation, and Consultation
During Project Design A fact finding mission of the Asian Development Bank visited Shanxi province, the People's Republic of China, to discuss the project preparatory technical assistance (PPTA) for Shanxi Energy and Environment Improvement Project with the executing agency (EA), the Shanxi Provincial Government represented by the Shanxi Provincial Development and Reform Commission (SDRC) and the Shanxi Finance Bureau (SFB), and the project implementing agencies (PIAs). The mission reached a good understanding with the EA, PIAs and the Ministry of Finance on the objectives, scope, cost estimates, financing plan, and implementation arrangements of the TA. A loan fact finding mission was also subsequently fielded after the review conducted by the PPTA consultants and agreements were reached with the stakeholders on the final scope, project cost estimates and financing plan for the proposed loan.
During Project Implementation The project team is closely coordinating with the project management office (PMO), local government at county level and sub project implementing agencies on the implementation requirements.

Business Opportunities

Consulting Services International and national consultants may be hired by the PMO or the implementing agencies through a consulting firm and/or individual selection method in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The required positions and person-months are indicated in the Project Administration Manual (a linked document to the Report and Recommendation of the President). Disbursements will be made in accordance with ADB's Loan Disbursement Handbook (2010, as amended from time to time).
Procurement All ADB-financed procurement for the project will be conducted in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Indicative procurement packages and financing plan for all subprojects are indicated in the Project Administration Manual (a linked document to the Report and Recommendation of the President). Disbursements will be made in accordance with ADB's Loan Disbursement Handbook (2010, as amended from time to time).

Responsible Staff

Responsible ADB Officer Xinjian Liu
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Shanxi Provincial Government
SXWZC2007@163.COM
No. 21 Hou Xiaohe Street
Taiyuan City
Shanxi Province, PRC

Timetable

Concept Clearance 14 Dec 2010
Fact Finding 24 Oct 2011 to 04 Nov 2011
MRM -
Approval -
Last Review Mission -
Last PDS Update 29 Mar 2016

Loan 2885-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Aug 2012 27 Mar 2013 24 Apr 2013 31 Dec 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 166.10 Cumulative Contract Awards
ADB 100.00 31 Aug 2012 94.36 0.00 94%
Counterpart 66.10 Cumulative Disbursements
Cofinancing 0.00 31 Aug 2012 80.22 0.00 80%

Evaluation Documents See also: Independent Evaluation

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Related Publications

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