China, People's Republic of: Low-Carbon District Heating Project in Hohhot in Inner Mongolia Autonomous Region

Sovereign Project | 47052-002 Status: Active

Summary

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 Low-Carbon District Heating Project in Hohhot in Inner Mongolia Autonomous Region
Project Number 47052-002
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3218-PRC: Low-Carbon District Heating Project in Hohhot in Inner Mongolia Autonomous Region
Ordinary capital resources US$ 150.00 million
Loan: Low-Carbon District Heating Project in Hohhot in Inner Mongolia Autonomous Region
Shanghai Pudong Development Bank US$ 142.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Knowledge solutions
Partnerships
Sector / Subsector

Energy - Energy utility services

Gender Equity and Mainstreaming No gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome The first NCB package on heat pipelines valued at $5.1 million was awarded in December 2015.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

not yet due

not yet due

not yet due

not yet due

not yet due

not yet due

not yet due

Geographical Location

Safeguard Categories

Environment A
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

The project is classified as category A for environment. A project environmental impact assessment was drafted and disclosed on Asian Development Bank website on 12 May 2014. A revised draft of the environmental impact assessment was disclosed on 10 July 2014 and a reformatted version of the revised draft was disclosed on 15 October 2014. The environmental impact assessment complies with Asian Development Bank's policies and requirements including Asian Development Bank's Safeguard Policy Statement (2009). The project will avoid 848,500 tons of standard coal, and will emit 60% less carbon dioxide, 82% less nitrogen oxides, negligible particulate matters, and 98% less sulfur dioxide compared with the existing heating supply.

The project identifies potential environmental adverse impacts. During construction, these would include (i) soil erosion; (ii) noise, vibration, and dust; (iii) solid waste, (iv) community disturbance and public safety; and (v) occupational health and safety. During operation, potential adverse impacts would be (i) pollutants emission from the heat sources, (ii) noise from the heat sources and the heat exchange stations, (iii) waste water, and (iv) occupational health and safety. The environmental impact assessment concludes that the construction and operation impacts can be mitigated through the implementation of an environmental management plan, which defines mitigation measures, monitoring requirements, and institutional responsibilities to ensure proper environmental management throughout the project construction and operation.

Involuntary Resettlement The project is classified category C for involuntary resettlement. The project does not entail permanent land acquisition. Installing the underground heating pipelines will temporarily occupy the publicly owned land (road and sidewalks) for a maximum of 6 months, which will not cause involuntary resettlement of people. The project will not entail demolition of any structure.
Indigenous Peoples The project is classified category C for indigenous peoples. The project beneficiaries include ethnic minorities. Thus, the project does not have any adverse impact on ethnic minority people.
Stakeholder Communication, Participation, and Consultation
During Project Design

Project information was communicated through public consultation, information disclosure mechanism in Asian Development Bank''s and government''s website, meetings, interviews, focus group discussions, and community consultation meetings, in accordance with Asian Development Bank''s requirements of information disclosure policy.

Two meaningful consultations with stakeholders have been conducted during feasibility study and environmental impact assessment in accordance with the People's Republic of China Interim Guideline on Public Consultation in Environmental Impact Assessment (2006) and Asian Development Bank''s Safeguard Policy Statement (2009). Representatives of 16 communities, 7 community clinics, 14 local government agencies and social institutions, 210 households, and 12 small boiler houses in the project area were consulted through meetings, focus group discussions, and household surveys. Generally, there is a high level of public support for heating service improvements, so the beneficiary communities were very supportive.

The project environmental impact assessment was disclosed at www.adb.org and on the website of the Hohhot City Development, Investment and Operation Company.

During Project Implementation A review mission was fielded in Hohhot from 25 to 29 January 2016. The signing of onlending agreements and opening of imprest account are expected by April 2016. A minor change in scope is currently being undertaken and is expected to be approved in the first week of April 2016. One NCB package valued at $5.1 million was awarded in December 2015.

Business Opportunities

Consulting Services The project will engage 3 individual consultants (District Heating Specialist, international for 9.5 person-months, intermittent; Environment Monitoring Specialist, national for 15 person-months, intermittent; Social Specialist, national for 2 person-months, intermittent) to support the Governemnt of Inner Mongolia Autonomous Region, Hohhot City Development, Investment and Operation Company, and Hohhot Chengfa Heating Company in the project implementation and capacity development. The consultants will be recruited in accordance with Asian Development Bank''s Guidelines on the Use of Consultants (2013, as amended from time to time). The Hohhot City Development, Investment and Operation Company, and the Hohhot Chengfa Heating Company will be responsible for engaging consultants through individual consultant selection method.
Procurement Taking into consideration the maturity of district heating market in the People's Republic of China and experiences from past district heating projects, Asian Development Bank-financed goods contracts that cost $10 million or more will be procured through international competitive bidding and less than $10 million will be procured through national competitive bidding, using Asian Development Bank's standard bidding documents. Yet, the project will install low nitrogen oxides natural gas and electrode boilers, which are new to the People's Republic of China's district heating market. Therefore, international competitive bidding will still be used for goods packages relevant to new types of heating boilers, which include boilers, heat exchange units, and electric and control system packages even though they are less than $10 million.

Responsible Staff

Responsible ADB Officer Na Won Kim
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Government of Inner Mongolia Autonomous Region
BAO7777@126.COM
No. 19 Chilechuan Street, Hohhot, Inner Mongolia Autonomous Region, The People's Republic of China 010098

Timetable

Concept Clearance 15 Jul 2013
Fact Finding 19 May 2014 to 30 May 2014
MRM 11 Jul 2014
Approval -
Last Review Mission -
Last PDS Update 31 Mar 2016

Loan 3218-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2014 19 Mar 2015 17 Jun 2015 31 Oct 2020 31 Oct 2021 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 372.70 Cumulative Contract Awards
ADB 150.00 09 Dec 2014 5.22 0.00 3%
Counterpart 80.30 Cumulative Disbursements
Cofinancing 142.40 09 Dec 2014 0.00 0.00 0%

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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