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Raising Development Impact through Evaluation

People’s Republic of China: Guangdong Energy Efficiency and Environment Improvement Investment Program, Tranche 2

Evaluation Document | 29 December 2014

About 75% of generation capacity in Guangdong was coal-fired, which caused serious air pollution and acid rain, with ambient air quality increasingly failing to meet national air quality standards. The energy intensity of Guangdong’s economy was also relatively high by international standards at 3.4 times the average of member countries of the Organization for Economic Cooperation and Development (OECD). Improvements in energy efficiency in Guangdong were expected to lower energy consumption and the need for additional power generation capacity, thereby saving energy, reducing adverse environmental impacts, relieving energy shortages, and improving energy security.

The Government of the People’s Republic of China prioritized energy efficiency and environmental protection in the Eleventh Five-Year National Plan (2006–2010), including targets for improving energy intensity by 20% and reducing major pollutants by 10%. Under this plan, Guangdong targets to improve its energy efficiency by 16% and reduce its sulphur dioxide emissions by 15% by 2010. Subsequently, the provincial Government of Guangdong approved strategies to support the energy efficiency and pollutant reduction targets. A policy framework was also established for energy efficiency improvement and pollution reduction in key sectors. The proposed investment program was consistent with the Asian Development Bank (ADB) Medium-Term Strategy II for 2006–2008 and with the strategic development objectives of the country strategy and program. It was also aligned with ADB energy sector policies.

This report validates the completion report’s assessment of the project. IED overall assessment: Highly successful.