fbpx 49211-001: China Everbright Renewable Energy Project | Asian Development Bank

China, People's Republic of: China Everbright Renewable Energy Project

Nonsovereign (Private) Project | 49211-001 Status: Approved

To address severe air, water, and land pollution across the PRC, the country''s 13th Five-Year Plan, (2016-2020) calls for more stringent environmental protection measures and a supportive regulatory framework for renewables. In response, the Asian Development Bank (ADB) has focused its business development efforts in the PRC on environmental infrastructure. Through ongoing discussions with stakeholders, the project team has identified emerging market demand for ADB to support the environmental infrastructure arms of state-owned enterprises (SOEs) in accessing international capital markets by strengthening corporate governance and environmental management systems. This facilitates SOE reform and enhances transparency.

Project Details

Project Officer
Abello, Eduardo P. Private Sector Operations Department Request for information
Country
  • China, People's Republic of
Sector
  • Energy
 
Project Name China Everbright Renewable Energy Project
Project Number 49211-001
Borrower/Company China Everbright Greentech Limited
Country China, People's Republic of
Location Nation-wide
Type or Modality of Assistance
7512 Equity USD 10.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Renewable energy generation - biomass and waste

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Abello, Eduardo P.
Project Sponsor(s) CHINA EVERBRIGHT INTERNATIONAL LIMITED
Description

To address severe air, water, and land pollution across the PRC, the country''s 13th Five-Year Plan, (2016-2020) calls for more stringent environmental protection measures and a supportive regulatory framework for renewables. In response, the Asian Development Bank (ADB) has focused its business development efforts in the PRC on environmental infrastructure. Through ongoing discussions with stakeholders, the project team has identified emerging market demand for ADB to support the environmental infrastructure arms of state-owned enterprises (SOEs) in accessing international capital markets by strengthening corporate governance and environmental management systems. This facilitates SOE reform and enhances transparency.

The project will facilitate the spin-off listing of China Everbright Greentech Limited (CEGL), a wholly-owned subsidiary of China Everbright International Limited (CEIL) to support agricultural waste-to-energy and management of hazardous waste across the PRC. 28% of shares of CEGL will be floated on the Hong Kong stock exchange, with CEIL remaining the largest indirect shareholder after the initial public offering. ADB will support this initial public offering as a cornerstone investor.

Objectives and Scope Proceeds from the initial public offering will be used to build and operate agricultural and household waste-to-energy projects and hazardous waste treatment projects, to establish an in-house research and development institute to improve operational efficiency, reduce emissions and residues, and acquire advanced technologies, and to fund working capital.
Linkage to Country/Regional Strategy

By supporting environmental sustainability, the project directly addresses key development goals of ADB's country partnership strategy for the PRC, and aligns with the strategy''s sector priority of pollution control. Environmental sustainability will continue to be a major strategic objective of ADB support to the PRC, as will the PRC's delivery of environmental, regional, and global public goods. The project strongly complements ADB's East Asia Department's on-going initiatives in pollution mitigation projects.

The project is consistent with ADB's Energy Policy. Under the policy, ADB's investments will focus on renewable energy projects, as well as expansion of energy access. The policy states that support for renewable energy projects will be prioritized and broadened, with an objective to create a framework that makes investing in renewable energy commercially viable. The policy envisages that, in the process of facilitating direct private sector investments in renewable energy, ADB will assume greater risks and act as a catalyst for investments that the private sector might not otherwise be willing to make.

Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is classified category B for environment.

As the proposed ADB investment is not earmarked for any specific subprojects, the requirement for general corporate finance projects will apply. The proceeds of ADB''s investment will be applied to non-category A projects only.

CEGL has an existing environmental and social management system (ESMS) that is compliant with ADB''s Safeguard Policy Statement (SPS) and will be further enhanced to include all business lines. For future subprojects, CEGL will apply ADB''s prohibited investment activities list and use the corresponding rapid environmental assessment screening checklist to (i) conduct an initial assessment of the impacts and risks; and (ii) ensure that investments using ADB funds abide by applicable national laws and regulations, and comply with ADB''s Safeguard Policy Statement and the ESMS requirements.

CEGL has also established an Environmental, Safety, Health and Safety (ESHS) department to manage environmental, health, and safety issues, and to provide assurance that risks are appropriately mitigated.

Involuntary Resettlement

The project is classified as category B for involuntary resettlement.

Land acquisition for subprojects has and will likely continue to involve variously involuntary displacement impacts of no, non-major and major significance. ADB funds will however not be used to fund category A projects that require the involuntary resettlement of more than 200 persons that experience major impacts of either physical displacement from housing or losing 10% or more of their productive (income generating) assets.

Resettlement is undertaken by government and the use right for required land is transferred to CEGL under the terms of the government's concession agreement for each project. All house demolition, relocation and compensation for assets of affected people are undertaken by the government in consultation with CEIL and CEGL. The ESMS includes adequate resettlement policy principles and screening procedures to ensure that subprojects that produce physical and economic displacement impacts will have resettlement plans prepared following national laws of the PRC and in accordance with ADB's SPS.

Indigenous Peoples The project is classified as category C for indigenous peoples. CEGL waste-to-energy and hazardous waste treatment subprojects are located in urban and peri-urban areas in or near industrial zones where no distinct or vulnerable ethnic minority groups have been found to be adversely or beneficially affected. Future subprojects are similarly not expected to have impacts on ethnic minorities. The ESMS includes adequate measures to identify, categorize, mitigate and manage any potential subproject impacts on ethnic minority groups in the PRC. Where impacts on ethnic minorities are found, Ethnic Minority Development Plans responsive to SPS requirements will be prepared.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 05 Oct 2016
Credit Committee Meeting 05 Apr 2017
Approval 06 Apr 2017
Last PDS Update 11 May 2017

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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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