ADB is helping the People's Republic of China promote energy efficiency and environmental protection in Gungdong province. The second tranche of a multitranche financing facility will help fund projects to retrofit existing equipment with proven energy-efficiency technologies. The program is expected to result in energy savings and reduce coal consumption.
tCO2 equivalent per year in greenhouse gas emission reduction
TWh equivalent per year in energy saved
The results data reported above are limited to ADB's core sectors, as defined under Strategy 2020 and tracked through indicators in the ADB Results Framework. For definitions of results indicators, please see the ADB Results Framework Indicators Definition.
|Project Name||Guangdong Energy Efficiency and Environment Improvement Investment Program - Project 2|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Energy sector development and institutional reform
|Gender Equity and Mainstreaming|
The Project is to promote energy efficiency and environmental protection in Gungdong Province using advanced technologies, and is justified in technical, economic, and financial terms. The energy savings will result from retrofitting existing equipment with more efficient equipment, which in aggregate will reduce the need to construct and operate a conventional coal-fired power plant.
The Project will consider only retrofits of proven energy efficiency technologies in the following areas: (i) motors and motor-drive systems; (ii) transformers and reactive power compensators; (iii) lighting; (iv) heating, ventilation, and air conditioning; (v) air compressors and pumping systems; (vi) recovery of waste energy from industry; (vii) coal-fired industrial boilers and industrial cogeneration; and (viii) other related energy efficiency improvement projects.
The Project will have multiple benefits: (i) energy security improves as lesser new power supply capacity will be needed to meet future demand, and less coal will be used for power generation; and (ii) the local and subregional environment improves, and the contribution to global climate change is lower because of avoided coal use.
|Project Rationale and Linkage to Country/Regional Strategy||
Currently, PRC is one of the largest energy consumers in the world. Within its energy mix, approximately 70% of the primary energy demand is met by coal, and about 80% of electricity is generated from coal. The large share of coal-fired power generation results in serious environmental issues and accounts for about 50% of the PRC's sulfur dioxide emissions and 80% of nitrogen oxide emissions both pollutants result in acid rain that falls on one third of the country. Rapid implementation of energy conservation measures, including implementation of EPPs, will lower the burden for later addressing the consequence of carbon emissions and climate change.
Guangdong has the largest and fastest-growing economy among all the PRC provinces. Its gross domestic product (GDP) has grown at 14% per annum since 1995. Electricity consumption is dominated by energy-intensive heavy industries, with the industry and manufacturing sectors combined representing about 73% of total electricity use. The province has relatively low natural resource endowments. It imports 100% of coal requirements and 80% of oil needs; approximately 20% of electricity is imported from other provinces. The demand for power has outpaced supply and power shortages have been experienced during the summer peak periods. About 75% of the generation capacity is from coal-fired power plants, which have caused serious air pollution. Therefore, improving energy efficiency is a high priority for GPG to help address both energy security and environmental issues. Guangdong also provides a good setting to pilot the EPP model because of its vibrant economy and the large impact that energy savings will have in comparison with less industrialized provinces.
|Impact||Improved overall energy intensity and reduced emissions in Guangdong Province.|
|Description of Outcome||Improved energy efficiency in selected industrial and commercial sectors in Guangdong province.|
|Progress Toward Outcome||The Project is rated "satisfactory" in terms of implementation progress and also compliances with covenants. There is no delay in terms of loan utilization.|
|Description of Project Outputs||
Energy efficiency projects of Tranche 2 implemented
ESCO sector developed in Guangdong
Capacity developed for promotion and assessment of energy efficiency
|Status of Implementation Progress (Outputs, Activities, and Issues)||
100% of the total amount loan was withdrawn. All six sub-borrowers have fully utilized their sub-loans.
Tranche 2 has developed approximately an EPP equivalent to 40.4 MW, and provided energy savings of about 202,013 MWh/year and emissions reduction of total suspended particulates (TSP) of 676 tons/year (t/y), sulfur oxide of 1,818 t/y, nitrogen oxide of 404 t/y, and carbon dioxide of 157,500 t/y, which have already achieved more than the designed energy efficiency and emission reduction results.
Three workshops have been held, and public education program has been conducted at the Guangzhou Energy Conservation Exhibition yearly.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The Project is classified as environmental category financial intermediary (FI), as all subprojects will only have insignificant environmental impacts, in accordance with the ADB's Environment Policy (2002) and Environmental Assessment Guidelines (2003). All six subprojects can meet the environmental criteria for subproject selection and will have only insignificant impacts. All subprojects can meet relevant national environmental laws and regulations. Implementation of the Project will improve energy security and environmental quality in Guangdong. Moreover, it will reduce coal consumption, free up resources, and lower the risks associated with coal mining and transportation.|
|Involuntary Resettlement||The Project will not involve any land acquisition or resettlement.|
|Indigenous Peoples||Since all subprojects are retrofit projects, the Project will not have any adverse social impacts, including on ethnic minorities.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||In case that consulting services are needed, subborrowers will be required to follow the relevant procurement rules in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). A summary of procurement plan for the Project is in Attachment 4 of Appendix 1 of the approved project report. In case of noncompliance, GFTC will exercise the right to recall the subloan.|
|Procurement||The procurement mode for works and goods is consistent with the procurement threshold agreed in the FFA. Subborrowers will be required to follow the relevant procurement rules in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). A summary of procurement plan for the Project is in Attachment 4 of Appendix 1 of the approved project report. In case of noncompliance, GFTC will exercise the right to recall the subloan.|
|Responsible ADB Officer||Liu, Xinjian|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Government of Guangdong Province (GGP)
Ms. Cao Yuying
Floor 11, No. 26 Cangbian Rd., Guangzhou, PRC
|Concept Clearance||31 Aug 2006|
|Fact Finding||14 Oct 2009 to 19 Oct 2009|
|MRM||16 Nov 2009|
|Approval||16 Dec 2009|
|Last Review Mission||-|
|PDS Creation Date||18 Apr 2008|
|Last PDS Update||22 Jan 2013|
|Approval||Signing Date||Effectivity Date||Closing|
|16 Dec 2009||30 Mar 2010||28 May 2010||31 Dec 2012||-||08 Oct 2012|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||66.14||Cumulative Contract Awards|
|ADB||22.06||16 Dec 2009||22.06||0.00||100%|
|Cofinancing||0.00||16 Dec 2009||22.06||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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Guangdong Energy Efficiency and Environment Improvement Investment Program - Tranche 2||Project/Program Completion Reports||Jun 2014|
|Loan Agreement for Guangdong Energy Efficiency and Environment Improvement Investment Program - Project 2 between People's Republic of China and Asian Development Bank dated 30 March 2010||Loan Agreement (Ordinary Resources)||Mar 2010|
|Project Agreement for the Guangdong Energy Efficiency and Environment Improvement Investment Program - Project 2 between Asian Development Bank and Guangdong Provincial Government dated 30 March 2010||Project/Program Agreements||Mar 2010|
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
|Title||Document Type||Document Date|
|People’s Republic of China: Guangdong Energy Efficiency and Environment Improvement Investment Program, Tranche 2||Validations of Project Completion Reports||Dec 2014|
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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People's Republic of China: Clean and Efficient Energy in Guandong ProvinceGuangdong province in the south of the People's Republic of China is proving to be a fertile testing ground for efficient and environmentally friendly power alternatives to fossil fuels.
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