China, People's Republic of: Strengthening Capacity for Promoting Distributed Renewable Energy Utilization in Hebei Province

Sovereign Project | 47054-001

Summary

The proposed TA supports the PRC government's strategy for delinking the economic growth and increased greenhouse gas emissions and increasing the utilization of renewable energy. The proposed TA is also a timely response to address the urban air pollution in Northern PRC which is partly attributed to coal fired heating plants located in urban areas and supports the recently issued regulations by National Energy Administration to increase non-polluting energy sources for heat supply. ADB's PRC: Country Partnership Strategy 2011 2015 also prioritized ADB support for innovative technologies and institutional arrangements to mitigate climate change, urban environment and private sector participation in delivery of public services. The proposed TA will enhance the capacity of provincial government agencies to utilize distributed renewable energy sources for heat supply in urban areas by assessing the feasibility of geothermal energy and wind power as a potential heat source in the context of Hebei Province.

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Project Name Strengthening Capacity for Promoting Distributed Renewable Energy Utilization in Hebei Province
Project Number 47054-001
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8582-PRC: Strengthening Capacity for Promoting Distributed Renewable Energy Utilization in Hebei Province
Technical Assistance Special Fund US$ 300,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Energy - Energy efficiency and conservation - Energy sector development and institutional reform - Energy utility services - Renewable energy generation - solar

Gender Equity and Mainstreaming
Description The proposed TA supports the PRC government's strategy for delinking the economic growth and increased greenhouse gas emissions and increasing the utilization of renewable energy. The proposed TA is also a timely response to address the urban air pollution in Northern PRC which is partly attributed to coal fired heating plants located in urban areas and supports the recently issued regulations by National Energy Administration to increase non-polluting energy sources for heat supply. ADB's PRC: Country Partnership Strategy 2011 2015 also prioritized ADB support for innovative technologies and institutional arrangements to mitigate climate change, urban environment and private sector participation in delivery of public services. The proposed TA will enhance the capacity of provincial government agencies to utilize distributed renewable energy sources for heat supply in urban areas by assessing the feasibility of geothermal energy and wind power as a potential heat source in the context of Hebei Province. In addition, the proposed TA will provide capacity building to provincial agencies to structure public private partnerships (PPP) to attract private sector investments to these distributed renewable energy projects.
Project Rationale and Linkage to Country/Regional Strategy
Impact Increased utilization of distributed renewable energy in Hebei Province
Project Outcome
Description of Outcome Enhanced capacity to utilize distributed renewable energy is adopted in Hebei Province and demonstration projects and implementation arrangements are identified.
Progress Toward Outcome The master plan for utilizing geothermal energy and bio mass for heat supply in Hebei Province is being prepared under the TA.
Implementation Progress
Description of Project Outputs

Assess the geothermal resource availability in secondary cities in Hebei Province and feasibility of using geothermal energy for heat supply.

Assess the technical and financial feasibility of using excess wind energy for heat supply in Hebei Province

Enhance the capacity of provincial government agencies to implement identify, structure and implement several distributed renewable energy projects as public private partnerships (PPP).

Status of Implementation Progress (Outputs, Activities, and Issues)

The consultant recruitment has been completed and the consultants have been mobilized. It has been agreed with the government, the TA will focus on preparing a master plan for utilizing geothermal and bio mass for heat supply in Heat supply. The feasibility study for using wind power for heat supply will not be undertaken due to inadequate TA resources.

The interim report was submitted on August 2014.

Participants from the consulting team, Finance Bureau, Hebei DRC, ADB and experts from stakeholders attended the midterm workshop in November 2014 in Hebei.

During the workshop, the government requested for the need for an additional renewable energy utilization planning expert. The renewable energy utilization planning expert will be recruited for 2 months to prepare a geothermal energy utilization plan. A contract variation has been submitted and was approved in January 2015 by OSFMD.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Provincial government agencies and private sector companies engaged in geothermal based heating has been consulted.
During Project Implementation Extensive consultatations with stakeholders engaged in promoting renewable energy utilization in non-electricity applications in Hebei Province will be undertaken.
Business Opportunities
Consulting Services

The CDTA will be carried out by a team of national consultants with extensive knowledge and expertise in (i) geothermal resource assessment and use of geothermal energy for heating, (ii) distributed renewable energy technologies and implementation models for distributed renewable energy projects, (iii) structuring of PPP projects for renewable energy, (iv) institutional and financial regulations pertaining to wind power and heat supply in PRC.

ADB will select and engage consultants through a national consulting firm in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time) using the quality- and cost-based selection method. Because of the importance of the technical aspects of the consulting services, a quality cost ratio of 80:20 is proposed. The consulting firms will be required to submit a simplified technical proposal covering work plan, team composition, task assignments, work and personnel schedules, and curriculum vitae of the proposed consultants. The national consultancy firms in the PRC have adequate expertise to undertake this assignment and the relatively small scale of TA budget and the requirement for extensive field work do not warrant the inclusion of international consultancy firms in the short list.

Procurement All procurement will be carried out in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). All equipment purchased under the TA will be turned over to the implementing agency after TA completion. TA funds will be disbursed in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time).
Responsible ADB Officer Pradeep Perera
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Hebei Development Reform CommissionMr. Xiaolin Qiao, Chiefqiaoxiaolin@126.comNo. 55 Ziqiang Road, Shijiazhuang Hebei 050000 People's Republic of China
Timetable
Concept Clearance 04 Nov 2013
Fact Finding 19 Nov 2013 to 19 Nov 2013
MRM -
Approval 16 Dec 2013
Last Review Mission -
Last PDS Update 30 Mar 2015

TA 8582-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Dec 2013 07 Jan 2014 07 Jan 2014 31 Dec 2014 30 Sep 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
300,000.00 0.00 100,000.00 0.00 0.00 0.00 400,000.00 16 Dec 2013 135,426.40

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