fbpx 51004-002: Preparing Air Quality Improvement Program (2017-2019) in the Greater Beijing–Tianjin–Hebei Region | Asian Development Bank

China, People's Republic of: Preparing Air Quality Improvement Program (2017-2019) in the Greater Beijing–Tianjin–Hebei Region

Sovereign (Public) Project | 51004-002 Status: Active

The proposed transaction technical assistance (TA) facility will provide project preparation, capacity building, and policy advisory assistance for a multiyear lending program spanning 2017 -2019, which aims at improving air quality and facilitate low-carbon development in the greater BTH region. Central topics for the lending program are (i) enhancing policy and regulation for advancing the government's air quality and sustainable development objectives, (ii) strengthening and deepening green finance, and (iii) promoting innovative low-emission technologies to transform industrial production towards clean production. The projects to be prepared comprise the (i) Emission Control and Pollution Reduction Fund of the China Energy Conservation and Environment Protection Group (CECEP); (ii) policy reforms and results-based program in up to two key provinces in the greater BTH region; and (iii) an additional financing for the China National Investment and Guaranty Corporation's Green Financing Platform Project.

Project Details

Project Officer
Yamamura, Shigeru East Asia Department Request for information
Country
  • China, People's Republic of
Modality
  • Technical Assistance
Sector
  • Energy
 
Project Name Preparing Air Quality Improvement Program (2017-2019) in the Greater Beijing–Tianjin–Hebei Region
Project Number 51004-002
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9309-PRC: Preparing Air Quality Improvement Program (2017-2019) in the Greater Beijing Tianjin Hebei Region
Technical Assistance Special Fund US$ 1.50 million
Technical Assistance Special Fund US$ 1.50 million
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 400,000.00
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 400,000.00
TA 9309-PRC: Preparing Air Quality Improvement Program (2017-2019) in the Greater Beijing Tianjin Hebei Region (Supplementary)
Technical Assistance Special Fund US$ 300,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy efficiency and conservation - Renewable energy generation - biomass and waste - Renewable energy generation - solar

Finance / Infrastructure finance and investment funds - Small and medium enterprise finance and leasing

Transport / Multimodal logistics - Transport policies and institutional development - Urban public transport

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sewerage - Urban water supply

Gender Equity and Mainstreaming No gender elements
Description The proposed transaction technical assistance (TA) facility will provide project preparation, capacity building, and policy advisory assistance for a multiyear lending program spanning 2017 -2019, which aims at improving air quality and facilitate low-carbon development in the greater BTH region. Central topics for the lending program are (i) enhancing policy and regulation for advancing the government's air quality and sustainable development objectives, (ii) strengthening and deepening green finance, and (iii) promoting innovative low-emission technologies to transform industrial production towards clean production. The projects to be prepared comprise the (i) Emission Control and Pollution Reduction Fund of the China Energy Conservation and Environment Protection Group (CECEP); (ii) policy reforms and results-based program in up to two key provinces in the greater BTH region; and (iii) an additional financing for the China National Investment and Guaranty Corporation's Green Financing Platform Project. The loans to be prepared are likely to use the financial intermediation loan, policy-based, and results-based loan modalities and will all require similar policy analysis and technical, financial, economic, environment, poverty, social, governance, legal, and regulatory due diligence. ADB lending support each year will be mutually reinforcing and will be backed up by analytical, policy advisory, and capacity development nonlending work, many of which are already in progress.
Project Rationale and Linkage to Country/Regional Strategy

The greater Beijing- Tianjin - Hebei (BTH) region is one of the core industrial areas in the People's Republic of China (PRC). It generates nearly one-third of the PRC's gross domestic product and is home to 27% of the PRC's population. It consistently experiences poor air quality caused by the region's excessive reliance on coal in the energy mix, high concentration of energy and pollution-intensive industrial enterprises, large number of cars and vehicles, and weak environmental standards and governance. For the same reasons, the greater BTH region is also responsible for about 40% of the country's carbon dioxide (CO2) emissions, the most abundant greenhouse gas contributing to climate change. Air pollution emergencies are frequent occurrence in many cities of the region. Ambient air pollution poses severe health risks and contributes to about 1.2 to 2.0 million premature deaths annually in the PRC, of which a disproportionately large number of them in the greater BTH region. It also causes productivity losses for the national economy estimated to amount up to $300 billion per year.

The measures by the Government of the PRC detailed in its Comprehensive Action Plan for Air Pollution Prevention and Control (CAAP) 2013 2017, which when adopted in 2013 introduced stringent air quality measures. These measures were aimed at rolling back air pollution by setting specific emissions targets on sulfur dioxide, nitrogen oxide, particulate matter 2.5 micrometers (PM2.5) or less in diameter and volatile organic compounds nationally, and especially for the greater BTH region. To date, the government's actions have helped to improve air quality on average. The air quality in the region is still far below the national and the World Health Organization standards. Due to its important contribution to the country's CO2 emissions, the BTH region is a common top priority under both the air quality and climate change policy goals. The PRC's Thirteenth Five-Year Plan, 2016 2020 also reaffirmed the government's commitment to accelerate air quality improvement. It sets ambitious targets for air quality progress, requiring hundreds of cities to meet _good_ or _excellent_ standards 80% of the time and to reduce by 25% the number of polluted days, and to reduce by 18% the number of days when PM2.5 exceeds allowable limits. The plan includes, for the first time, a total energy consumption cap, set at 5 billion tons of carbon equivalent.

The CAAP and low-carbon development efforts are part of the government's wider goals. The 13th plan period marks the entry into the _new normal_ of transformative change in development strategy, which (i) shifts the drivers of growth from focusing on the quantity of inputs, including environmental inputs, to their efficiency; (ii) focuses on the transformation of industrial production methods, a fundamental restructuring of the energy sector; and (iii) cultivates new growth points and competitive advantages driven by advanced technologies. The government's goal is to attain an ecological civilization in line with the United Nations Sustainable Development Goals and the 2015 Paris Agreement. Key levers identified by the government to drive the PRC's green development are (i) advanced, innovative technologies, which will transform the industry to adopt clean production methods; (ii) green finance; and (iii) policy reforms. The PRC's high ambitions on advancing environmentally sustainable development will lead to an unprecedented demand for financing. The government's green financing task force estimated those needs to range between CNY14.5 trillion and CNY29.8 trillion up to 2020. The CAAP targets alone will require CNY1.8 trillion in investment, and CNY250 billion within the greater BTH region. In addition, about CNY6.6 trillion in investments will be required to meet low carbon and clean energy targets in the 13th plan, of which only 10% 15% can be realistically financed with public funds.

The speed of _greening_ of the economy has to overcome significant uncertainties, challenges, and barriers. The speed of this transformation will depend on the (i) policy framework the government sets, particularly in terms of regulations, their enforcement, and fiscal and financial support schemes for the private sector to invest in emission control and pollution-reduction projects; (ii) availability and scale of deployment of advanced technologies many emission reduction technologies have been pilot tested, but not demonstrated and deployed; and (iii) availability of adequate financing. In September 2016, the government established it's Guidelines for Establishing the Green Financial System, but major barriers persist. On the supply side, key challenges include (i) insufficient information flow on new technologies, (ii) lack of capacity on the side of financial intermediaries in appraising advanced technologies, and (iii) reluctance to invest in new project types. On the demand side, there is still a lack of sufficient, well-developed green projects.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Beijing, Hebei, Henan, Inner Mongolia, Liaoning, Shandong, Shanxi, Tianjin
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Communication and coordination with MOF, NDRC, and local governments in the Greater BTH Region.
During Project Implementation

The TA has supported the recruitment of a consulting firm and several other individual consultants to conduct due diligence and preparatory works for the three BTH projects (i) Air Quality Improvement in the Greater Beijing Tianjin Hebei Region China National Investment and Guaranty Corporation's Green Financing Platform Project (Loan 3504-PRC, approved on 12 December 2016 for Euro458 million; (ii) Air Quality Improvement in the Greater Beijing Tianjin Hebei Region Regional Emission-Reduction and Pollution-Control Facility (Loan 3629, approved on 14 December 2017 for Euro428 million; and (iii) Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region--Henan Cleaner Fuel Switch Investment Program (Loan 3879, approved on 5 Dec 2019 for Euro269 million).

ADB, the executing and implementing agencies, and other stakeholders of each project are working closely together to complete the activities and meet the targets for each project. Review missions are regularly undertaken to assess the progress of each project.

Policy dialogue with relevant agencies including MOF, NDRC, China National Investment and Guaranty Company, China Energy Conservation and Environmental Protection Group, Jinan and Shandong Government, Hebei Government, Xingtai Bank, and Henan provincial government in the Greater BTH Region.

A knowledge exchange workshop on air quality improvement was held on 6-7 November 2018 in Beijing which showcased the (i) lessons learned and good practices from projects and agencies, (ii) analytical research on the air quality related issues, (iii) technology and financial innovations for air quality improvement, and (iv) policy and regulatory development on air quality improvement. More than 200 participants attended the 2 days event with representatives from ADB's developing member countries, and various government and private entities in the greater Beijing-Tianjin-Hebei region.

Business Opportunities
Consulting Services Consultants will be engaged following ADB's Guidelines on the Use of Consultants (2013, as amended from time to time) for the preparation of the fourth and final multisector support program for air quality improvement in the greater Beijing-Tianjin-Hebei region. Individual consultants will be engaged through the TA, using the individual selection method. The expertise of the consultants will cover the entire range required to conduct necessary due diligence for the loan projects.
Responsible ADB Officer Yamamura, Shigeru
Responsible ADB Department East Asia Department
Responsible ADB Division EASI
Executing Agencies
Ministry of Finance
Sanlihe, Xicheng District
Beijing,100820
People's Republic of China
Timetable
Concept Clearance -
Fact Finding 05 Jan 2017 to 05 Jan 2017
MRM -
Approval 10 Apr 2017
Last Review Mission -
Last PDS Update 23 Mar 2020

TA 9309-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Apr 2017 16 May 2017 16 May 2017 30 Dec 2020 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
3,700,000.00 400,000.00 800,000.00 0.00 0.00 0.00 4,900,000.00 10 Apr 2017 1,024,154.95

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.

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

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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
National Social and Gender Expert Individual - Consulting Closed 13 Feb 2020 19 Feb 2020
Corporate Governance Specialist (International) Individual - Consulting Closed 14 Nov 2019 20 Nov 2019
Environment & Social Safeguard Management Specialist Individual - Consulting Closed 11 Sep 2019 17 Sep 2019
Preparing Air Quality Improvement Program (2017-2019) in the Greater Beijing–Tianjin–Hebei Region Individual - Consulting Closed 23 Jul 2019 29 Jul 2019
Financial and Economic Analysis Specialist Individual - Consulting Closed 23 Jul 2019 29 Jul 2019
National Procurement Expert Individual - Consulting Closed 20 Mar 2019 26 Mar 2019
National Environment Expert Individual - Consulting Closed 27 Jul 2018 02 Aug 2018
International Environment Expert Individual - Consulting Closed 27 Jul 2018 02 Aug 2018
National Legal Expert Individual - Consulting Closed 04 Jul 2018 10 Jul 2018
International Technical Expert Individual - Consulting Closed 19 Apr 2018 25 Apr 2018
National Procurement Expert Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
National Environment Expert Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
International Environment Expert Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
National Project Coordinator Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
National Technical Expert 3 (Deep Well Geothermal Expert) Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
National Technical Expert 1 (Energy Efficiency Expert) Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
International Economist & Financial Analyst Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
National Technical Expert 2 (Renewable Energy Expert) Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
National Financial Management Expert Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
National Social Safeguards Expert Individual - Consulting Closed 18 Nov 2017 24 Nov 2017
Consulting Firm Firm - Consulting Closed 13 Apr 2017 12 May 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Preparatory Technical Assistance 9309 31 Oct 2017 Ricardo-AEA Ltd(UNITED KINGDOM) The Gemini Building, Fermi Avenue, Harwell IBC Didcot, Oxfordshire OX11 0QJ United Kingdom Ministry of Finance Consulting Services 359,930.00

Procurement Plan

None currently available.