Project Name Coal Mine Methane Development Project
Project Number 30403-013
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2146-PRC: Coalmine Methane Demonstration Project
Ordinary capital resources US$ 117.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Energy - Conventional energy generation

Gender Equity and Mainstreaming Some gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

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

Part A- Construction activities and installation of all the equipment and accessories associated with the power plant have been completed. The power plant was connected to the Shanxi power grid on 28 Mar 08 and on 3 Oct 08 passed the trial run tests requirements of the Shanxi Power Company. The Shanxi Provincial Development Reform Commission granted its final approval for completing the project requirements for operations on 9 February 2009 and on 5 July 2009 the power plant was put into commercial operations. JMC had turned over the project facilities to the new company established for the operation of the power plant.

Part B- All civil works and equipment installation have been completed for the Zhanglin gas transmission station as of end September 08. Construction work at the 4 gas collection stations (Gaozhuang [main station], Pingshang, Duanshi and Chengzhuang). In Yangcheng Industrial Zone station, all works have been completed. For Yangcheng station however, no material progress has been reported as construction work has to coincide with the construction schedule of Yangcheng Minsheng Gas Company since the station will be at the latter's premises. Equipment for the station was purchased through the ADB loan. Installation cost will be financed from counterpart funds. All pipelaying activities have been completed.

Distribution component for the Jincheng city has progressed well. Construction of the 50,000 m3 and the 80,000 m3 storage tanks and distribution stations, including the laying of medium pressure pipelines were completed and accepted in September 08 and on 18 Oct 08, the project was put in operation and began supplying gas to the city. The components for the 3 counties (Gaoping, Yangcheng, and Qinshui) have also progressed and in the final stages of completion. Lingchuan had dropped out of construction and ADB loan utilization due to funding problems, but has since completed its project scope with support from private investors.

The Project won the 2009 China Habitat Environment Prize awarded by the Ministry of Housing and Construction and was nominated for the Dubai International Award for best practices to improve the living environment.

Part C- Institutional Strengthening: Completed.

Geographical Location Shanxi Province

Summary of Environmental and Social Aspects

Environmental Aspects There is no major issue on social and environment safeguard compliance for the Project. No complaint has been reported by the affected people and villages. Submission of more detailed social, land acquisition and environment related reports for Part B will be provided upon project completion. The three PIAs were also requested to provide the required inputs for the final project impact assessment.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services ADB-financed consulting services will assist the project implementing agencies with (i) supervision of CMM drainage and CBM production, (ii) management and implementation of CMM transmission and distribution pipeline system component, (iii) institutional strengthening and capacity building, and (iv) promoting the development of additional CBM and CMM projects in Shanxi Province and will be carried out in accordance with ADB's Guidelines on the Use of Consultants.
Procurement Procurement of ADB-financed goods including (i) internal combustion gas engines and auxiliary equipment, (ii) gas transmission and distribution pipelines, (iii) operation and maintenance equipment for gas pipelines, (iv) pressure regulating equipment, (v) transformers, and (vi) gas storage tanks will be carried out in accordance with ADB Guidelines for Procurement.

Responsible Staff

Responsible ADB Officer Pajarillo, Merlita
Responsible ADB Department East Asia Department
Responsible ADB Division Energy Division, EARD
Executing Agencies
Shanxi Provincial Government
Ms. Wang Hongya
[email protected]
No. 21 Donghouxiahe, Taiyuan City, Shanxi Province, PRC


Concept Clearance -
Fact Finding -
Approval -
Last Review Mission -
PDS Creation Date 10 Mar 2006
Last PDS Update 14 Feb 2011

LoanĀ 2146-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Dec 2004 24 Mar 2005 04 Oct 2005 30 Jun 2009 31 Dec 2010 28 Jan 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 237.00 Cumulative Contract Awards
ADB 117.40 20 Dec 2004 105.44 0.00 92%
Counterpart 119.60 Cumulative Disbursements
Cofinancing 0.00 20 Dec 2004 114.64 0.00 100%

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