The main objective of the Project is to improve efficiency of energy generation and reduce emissions in meeting the peaking power requirements of the HSPG. Other objectives are to upgrade and expand the electricity supply in relatively poor rural areas, to expand irrigation system in Jingxing County, to close old, inefficient power plants, and to introduce competitive markets and use market forces to improve efficiency of power utilities. In addition, the policy dialogue aims to reduce rural tariffs to make electricity more affordable to the poor and to enable them to take advantage of the rural electrification.
|Project Name||Hebei Zhanghewan Pumped Storage Project|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Energy / Large hydropower generation
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The main objective of the Project is to improve efficiency of energy generation and reduce emissions in meeting the peaking power requirements of the HSPG. Other objectives are to upgrade and expand the electricity supply in relatively poor rural areas, to expand irrigation system in Jingxing County, to close old, inefficient power plants, and to introduce competitive markets and use market forces to improve efficiency of power utilities. In addition, the policy dialogue aims to reduce rural tariffs to make electricity more affordable to the poor and to enable them to take advantage of the rural electrification. The Project consists mainly of (i) establishing a 1,000 MW pumped storage power plant and a 63 kilometer (km) of 500 kV transmission line connecting the power plant to the grid, (ii) improving rural electricity supply to 23 counties including 15 poverty counties, (iii) closing down 20 old, inefficient and polluting coal-fired power units with a total capacity of 505 MW, (iv) supporting institutional reforms and introduction of competitive power market in HSPG, (v) expanding irrigation capacity by 6,700 ha, and (vi) planting of 16,330 ha of trees in Jinxing County.|
|Project Rationale and Linkage to Country/Regional Strategy||The Hebei power system is dominated by coal-fired plants with negligible contribution from other sources such as hydropower for peaking because Hebei lacks these natural resources. Small, old, and polluting coal-fired plants are used to meet the peak load. As a result, system operation is inefficient and costly, and suffers from frequent power interruptions. Consumers covered by the existing rural electrification network suffer from poor power supply because of its inadequate capacity. The Zhanghewan Pumped Storage Project will pump water up to an artificial reservoir on the Laoyemiao Mountain during the night when the system load is low (thus allowing coal-fired plants to operate more efficiently at continuous power for the whole day), and generate peaking power when needed with the same water during the day and evening.|
|Impact||Achieved sustainable pro-poor economic growth in Hebei Province|
|Description of Outcome||Improved clean energy supply, pro-poor rural development and institutional reforms in the project area|
|Progress Toward Outcome||The recent review mission visited the Project site and reviewed its environmental and social safeguards and has found it to be satisfactory. On involuntary resettlement, there is no complaint received from the affected people and nongovernmental organizations. Although the resettlement progress for Nahaoting is slow, the remaining resettlement works are being conducted satisfactorily. Roads are under construction and house construction thereafter. It is expected that relocation activities for Nanhaoting village will be completed by March 2013.|
|Description of Project Outputs||
Pumped storage capacity addition;
Rehabilitation of rural electrification network
Closure of old, coal-fired power plants
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The power plant has been fully operational since February 2009. Partial loan cancellation was made on 4 September 2012 on the request of the Borrower. The loan closing date had to be extended to 30 June 2013 to complete the relocation of the affected households.
To prepare for the closing of the Loan account, EAEN review mission will be fielded to review the project's compliance with loan covenants on environmental and resettlement issues.
|Geographical Location||Hebei, Jingxing Xian|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The environmental performance of the project against the environmental management plan is satisfactory.|
|Involuntary Resettlement||No complaint received from the affected people and nongovernmental organizations. Although the resettlement progress for Nanhaoting is slow, the remaining resettlement works have been conducted satisfactorily.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||International consultants will be engaged to assist Hebei Electric Power Company (HEP) in detailed design, preparation of bid documents, bid evaluation, implementation supervision, monitoring and evaluation of environmental mitigation measures, the resettlement program, and social and poverty impact, and the training of HEP/ZPSC staff. Advance recruitment action to expedite project implementation was approved on 28 May 2002.|
|Procurement||All procurement under the Project will be in accordance with ADB's Guidelines for Procurement. Procurement of materials and equipment with a contract value of more than $500,000 equivalent will be undertaken under international competitive bidding procedures, while procurement with a contract value of $500,000 equivalent or less will be done under international shopping procedures. Advance action for procurement was approved on 28 May 2002.|
|Responsible ADB Officer||Perera, Pradeep|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Energy Division, EARD|
Hebei Electric Power Company
Mr. Zhao Guiyuan
Ceyu, Jingxing County, Hebei Province, PRC
|Concept Clearance||13 Mar 1998|
|Fact Finding||25 Feb 2002 to 12 Mar 2002|
|MRM||28 May 2002|
|Approval||18 Oct 2002|
|Last Review Mission||-|
|PDS Creation Date||29 Nov 2006|
|Last PDS Update||25 Mar 2013|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Oct 2002||28 Aug 2003||16 Jan 2004||31 Dec 2009||30 Jun 2013||11 Jul 2013|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||381.80||Cumulative Contract Awards|
|ADB||144.00||18 Oct 2002||119.83||0.00||88%|
|Cofinancing||0.00||18 Oct 2002||135.95||0.00||100%|
|Status of Covenants|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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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
|Title||Document Type||Document Date|
|People’s Republic of China: Hebei Zhanghewan Pumped Storage Project||Validations of Project Completion Reports||Aug 2015|
None currently available.
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