ADB is helping the People’s Republic of China provide energy-efficient centralized heating in Heilongjiang, an underdeveloped northeastern border province regularly buffeted by frigid Siberian winds. The project will expand district heating systems in eight cities and install energy-efficient heating sources and heat exchangers, insulated pipelines, and computerized monitoring and control systems.
|Project Name||Heilongjiang Energy Efficient District Heating Project|
|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||Gender Equity and Mainstreaming
Private sector development
|Sector / Subsector||
Energy / Energy utility services
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed project will expand and upgrade district heating systems (DHSs) in eight cities of Heilongjiang province to make the systems energy efficient, thereby reducing emission of greenhouse gases and air pollutants. The project will install energy efficient heating sources and heat exchangers, insulated pipelines, and computerized monitoring and control systems.|
|Project Rationale and Linkage to Country/Regional Strategy||
The PRC has experienced a rapid increase in energy consumption in tandem with sustained economic growth, especially since 2000. By the end of 2010, the primary energy demand in the PRC had increased to more than 3.00 billion tons of standard coal equivalent (btce), compared to 1.39 btce in 2000. The PRC relies heavily on carbon-intensive coal, which provided about 70% of its primary energy in 2010. Electricity generation and heat supplies account for about half of the total coal consumption in the PRC. The Government of the PRC has recognized the challenges posed by the rapid rise in energy consumption and associated emissions. It has committed to achieve 40% 45% carbon intensity reduction by 2020 compared with 2005, primarily by targeting energy intensity reductions. During the Eleventh Five-Year Plan, 2006 2010 the energy intensity was reduced by 19.06% compared with a target of 20.00%. During the Twelfth Five-Year Plan, 2011 2015 the PRC has set a further energy intensity reduction target of 16%, an 8% reduction of sulfur dioxide (SO2), and a 10% reduction of nitrogen oxide (NOx). Heilongjiang province has set corresponding targets of reducing energy intensity by 16.0%, SO2 emission by 2.0% (10,000 tons [t]), and NOx emission by 3.1% (23,000 t) by 2015 compared to 2010.
The PRC is the second-largest district heating market in the world, the Russian Federation being the largest. Because of the large demand, 13 provinces, 3 autonomous regions, and two cities have adopted centralized heating. The DHS coverage area is continuously expanding to keep pace with the rapid economic growth and urbanization. Between 2003 and 2010, centralized heating coverage in the PRC increased from 1.9 billion square meters (m2) to 4.4 billion m2. However, DHS still covers only 30% of the total floor area compared to coverage of about 60% in European countries. Coverage is particularly low in low-income urban areas.
Heilongjiang is an underdeveloped inland province in the northeastern region of the PRC. Heating service in Heilongjiang, where temperatures fall below 40 C and the heating season lasts for up to 6 months, meets one of the basic human needs and provides essential support to socioeconomic activities. Northeastern provinces, including Heilongjiang, are a source of transboundary air pollution such as acid rain. The centralized heating area in Heilongjiang has increased from 199 million m2 in 2003 to 384 million m2 in 2010. By 2015, the province plans to increase the district heating coverage area by another 200 million m2, which will cover up to 70% of the cities and counties in the province. Many existing heating systems in the province are old and inefficient, and lack modern emission control equipment. Combustion efficiency of existing small heat-only boilers of 55% in many cities is far below the 87% that can be achieved in modern combined heat and power (CHP) plants or large heat-only boilers.
The existing inadequate coverage of district heating in low-income urban areas in Heilongjiang compels households to use coal stoves for heating, and these are a major cause of indoor air pollution and respiratory diseases. The poor indoor air quality in households has a disproportionately high effect on women and children, who spend most of their time indoors. There were 18 cases of carbon monoxide (CO) poisoning and 10 fire accidents caused by household stoves from 2008 to 2010 in the project areas. Emissions from existing small and inefficient neighborhood boilers, most of which lack emission control equipment, also worsen outdoor air quality and cause significant cumulative harm to public health. Providing cleaner and reliable district heating services to households and other community areas will (i) reduce cases of respiratory diseases through improved indoor and outdoor air quality, reduce CO poisoning by providing safer district heating services, and improve the medical environment; (ii) improve living conditions; (iii) reduce heating expenditure by switching from individual household stoves and decentralized heating systems to centralized energy efficient heating systems; (iv) provide a better schooling environment during the winter; and (v) increase incomes through job opportunities created during construction and operation. Women and vulnerable people connected to the modern district heating networks will enjoy a cleaner, safer living environment.
The project will target selected cities where the poverty ratio is as high as 8.7% (compared to the national average of 7.7%) and district heating coverage is particularly low. The project will demonstrate that significant expansion of energy efficient DHSs to an additional 27 million m2 (270,000 households) can be introduced without increasing net emissions. The project will remove small, inefficient, and polluting neighborhood coal-fired boilers and coal-fired household stoves; and construct centralized district heating networks where heat is supplied by highly energy efficient CHP plants and large boilers, thereby reducing the overall carbon and air pollution footprints of district heating.
The project is closely aligned with Strategy 2020, where moving developing member countries onto low-carbon growth paths by improving energy efficiency has been identified as one of the key means of achieving environmentally sustainable growth. The Asian Development Bank (ADB) Energy Policy prioritizes projects on energy efficiency and access to energy for all, including district heating, for energy efficiency improvement and access to modern cleaner heating services for all. The country partnership strategy, 2011 2015 for the PRC identifies environmental sustainability as one of the three pillars of ADB assistance to the PRC.
|Impact||Improved energy efficiency and a cleaner environment in Heilongjiang province|
|Description of Outcome||Improved air quality and reduced greenhouse gas emissions in eight urban areas in Heilongjiang province|
|Progress Toward Outcome||
By the end of December 2016, five original subprojects (Harbin Taiping, Jiamusi, Qitaihe, Tongjiang, and Yichun Tangwanghe) are under construction. There are pending changes of project scope and implementation arrangements. Four subprojects (Jiagedaqi, Jidong, Yichun Xinqing and Raohe) are to be cancelled from ADB financing, and Hailin District Heating subproject is proposed to be added to utilize the loan savings.
|Description of Project Outputs||
Coverage of the district heating system in eight project cities without net increase in emissions expanded
Energy efficient heat generation capacity in three project cities improved
Private sector participation in district heating in two project cities promoted
|Status of Implementation Progress (Outputs, Activities, and Issues)||
As of 14 September 2017, cumulative contract awards totalled $93.8 million (62.5% of the total loan amount); cumulative disbursement totalled $83.6 million (55.7% of the total loan amount).
By September 2017, five original subprojects (Harbin Taiping, Jiamusi, Qitaihe, Tongjiang, and Yichun Tangwanghe) are under construction. Qitaihe and Jiamusi subprojects have been under construction started from May 2015 and construction activities continue in 2017. Tongjiang heat source plant, Harbin Taiping heat source plant and Yichun Tangwanghe subprojects are essentially completed.
|Geographical Location||Harbin, Jiagedaqi, Jiamusi, Jidong Xian, Jixi, Qitaihe Shi, Raohe, Tangwanghe Qu, Tongjiang, Xinqing Qu, Yichun|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||HPG and the implementing agencies shall ensure that the project is designed, constructed, and operated in accordance with the national and local government environmental laws, regulations, procedures, and guidelines: ADB's Safeguard Policy Statement (2009), Environmental Assessment Guidelines (2003), and the project initial environmental examination. HPG will ensure the boilers constructed under the project comply with gas emissions standards stipulated in the World Bank Pollution Prevention and Abatement Handbook. Environmental monitoring reports will be submitted to ADB two times per year during construction and annually for 2 years during operation. The environment management plan (EMP) with mitigation measures, monitoring plan, and institutional arrangements, will be updated during engineering design and incorporated in the bidding documents and civil works contracts.|
|Involuntary Resettlement||There will only be temporary occupation of existing roads and sidewalks when laying heating pipelines. Three subprojects will upgrade district heating plants within the existing premises of the implementing agencies.|
|Indigenous Peoples||The project has no adverse or significant impact on ethnic minorities.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||A total of 15 communities, 16 community clinics, 58 local government agencies and social institutions, and 390 households in the subproject areas were consulted through 11 consultation meetings, focused group discussions, and household surveys.|
|During Project Implementation||The public disclosure of all project documents has been done at the project management office and on the Asian Development Bank website, including the project information document; and consolidated environmental impact assessment. Continuous consultation will be conducted with relevant stakeholders during detailed design and construction stages by the executing and implementing agencies.|
|Consulting Services||To expedite project implementation, HPG has requested advance contracting and retroactive financing. This will include the procurement of goods, civil works, and the recruitment of consulting services. All advance contracting and retroactive financing will be undertaken in conformity with ADB's Procurement Guidelines (2010, as amended from time to time) and ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The amount to be retroactively financed will not exceed $30 million (equivalent to 20% of the ADB loan) and may finance costs incurred before loan effectiveness but not more than 12 months before the signing of the loan agreement. The issuance of invitations to bid, under advance contracting and retroactive financing, will be subject to ADB approval. The borrower, executing and implementing agencies have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project.|
All procurement of goods and works shall be carried out in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). ADB-financed civil works contracts, costing $10 million or more, and goods contracts costing $1 million or more, will be procured through international competitive bidding procedures using ADB's standard bidding documents. Goods contract packages costing more than $100,000 and less than $1 million will be procured using national competitive bidding, as will civil works contracts costing more than $100,000 and less than $10 million. Civil works and goods contract packages costing less than $100,000 will be procured using shopping procedures. The relevant sections of ADB's Anticorruption Policy (1998, as amended to date) will be included in all documents and contracts.
An 18-months procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and NCB guidelines are included as a linked document
|Responsible ADB Officer||Liu, Xinjian|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||PRC Resident Mission|
Heilongjiang Provincial Government
People's Republic of China
|Concept Clearance||15 Dec 2010|
|Fact Finding||22 Nov 2011 to 02 Dec 2011|
|MRM||28 Feb 2012|
|Approval||25 Sep 2012|
|Last Review Mission||-|
|Last PDS Update||14 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|25 Sep 2012||26 Feb 2013||24 Apr 2013||30 Jun 2018||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||353.00||Cumulative Contract Awards|
|ADB||150.00||25 Sep 2012||91.71||0.00||61%|
|Cofinancing||0.00||25 Sep 2012||84.91||0.00||57%|
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 Public Communications Policy (PCP) 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|
|Heilongjiang Energy Efficient District Heating Project: Procurement Plan||Procurement Plans||May 2015|
|Project Agreement for Heilongjiang Energy Efficient District Heating Project||Project/Program Agreements||Feb 2013|
|Loan Agreement for Heilongjiang Energy Efficient District Heating Project||Loan Agreement (Ordinary Resources)||Feb 2013|
|黑龙江省高能效区域集中供热项目: 项目数据表||Translated PDS||Oct 2012|
|Heilongjiang Energy Efficient District Heating Project||Reports and Recommendations of the President||Sep 2012|
|Heilongjiang Energy Efficient District Heating Project||Gender Action Plans||Sep 2012|
|Heilongjiang Energy Efficient District Heating Project||Project/Program Administration Manual||Sep 2012|
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
None currently available.
None currently available.
The Public Communications Policy (PCP) 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.
Requests for information may also be directed to the InfoUnit.
People's Republic of China Energy and HeatingA central heating project in nine cities in the northeastern province of Heilongjiang, People's Republic of China (PRC), will use private sector efficiency to warm homes and improve public health.
|Tender Title||Type||Status||Posting Date||Deadline|
|PRC: Heilongjiang Energy Efficiency and District Heating Project||Advance Notice||Archived||17 Aug 2012|
No contracts awarded for this project were found
|Title||Document Type||Document Date|
|Heilongjiang Energy Efficient District Heating Project: Procurement Plan||Procurement Plans||May 2015|