China, People's Republic of : Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project

Sovereign Project | 51033-001

The proposed project uses the financial intermediation loan modality, which is the best fit to support geographically scattered investments while maximizing ADB's loan leveraging capacity through revolving the loan fund and mobilizing domestic funds. It aims to address emerging challenges in air quality improvement and GHG emission reduction in both the greater BTH and YRD regions through energy efficiency, cleaner transport systems development, renewable energy development, and cooling systems retrofit. It also stimulates post COVID-19 recovery investment with build-back-better principles by continuously scaling up clean energy technologies and systems applications in the targeted regions, which account for around 50% of the gross domestic product in the PRC.

Project Details

  • Project Officer
    Zhang, Lei
    Sectors Group
    Request for information
  • Country/Economy
    China, People's Republic of
  • Sector
    • Energy
Project Name
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project
Project Number
51033-001
Country / Economy
  • China, People's Republic of
Project Status
Active
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4023-PRC: Air Quality Improvement in the Greater Beijing"Tianjin"Hebei Region"Green Financing Scale up Project
Source Amount
Ordinary capital resources US$ 150.00 million
Operational Priorities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
Sector / Subsector
  • Energy / Energy efficiency and conservation - Renewable energy generation - biomass and waste

  • Finance / Finance sector development

Gender
Effective gender mainstreaming
Description
The proposed project uses the financial intermediation loan modality, which is the best fit to support geographically scattered investments while maximizing ADB's loan leveraging capacity through revolving the loan fund and mobilizing domestic funds. It aims to address emerging challenges in air quality improvement and GHG emission reduction in both the greater BTH and YRD regions through energy efficiency, cleaner transport systems development, renewable energy development, and cooling systems retrofit. It also stimulates post COVID-19 recovery investment with build-back-better principles by continuously scaling up clean energy technologies and systems applications in the targeted regions, which account for around 50% of the gross domestic product in the PRC. The project will support key strategic pillars of ADB's Strategy 2030: (i) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability by accelerating low greenhouse gas emissions development and ensuring environmental sustainability; (ii) strengthening governance and institutional capacity by providing inclusive financial services for clean energy investment; and (iii) accelerating progress in achieving gender equality through gender mainstreaming activities.
Project Rationale and Linkage to Country/Regional Strategy
Asian Development Bank (ADB) and the Government of the People's Republic of China (PRC) agreed in 2015 to establish a multiyear lending program (20152020), which aims at mutually reinforcing the government actions in air pollution reduction in the greater BeijingTianjinHebei (BTH) region. Since 2015, ADB has approved around $2,000 million in loans under the multiyear lending program that have been successfully implemented so far. In 2015, ADB approved the first policy-based loan in the PRC, which focused on policy reforms and regulatory capacity strengthening in Hebei Province. In 2016, the second loan was approved to scale up investment in air pollution reduction projects in the region by enabling better access to finance, especially for small- and medium-sized enterprises (SME). In 2017, the third loan was approved to support deploying high-level technologies in major polluting entities across key sectors in the region. In 2018, the fourth loan was approved to help Shandong Province adopt more efficient and advanced technologies for heat production and refrigeration by replacing coal with cleaner sources such as natural gas, renewable energy and waste heat recovery. In 2019, the fifth loan was approved to accelerate a switch to cleaner fuel, that is from coal to natural gas and biogas for residential, commercial, and industrial use to improve air quality in Henan Province. The proposed project will be the sixth and final loan under the program.
Impact

Air quality and public health in the greater BTH and YRD regions improved

Project Outcome

Description of Outcome

Air pollutants and greenhouse gas emissions reduced

Progress Toward Outcome
As of June 2023, two clean air bond guaranty subprojects and five entrusted loan subprojects have been implemented. After completion, they are estimated to reduce 6,664.01 tons of coal consumption yearly, contributing to annual emission reduction of CO2 by 126,548.02 tons, SO2 by 7.4 tons, NOx by 116.18 tons, PM by 3.71 tons and HFC 231.14 tons.

Implementation Progress

Description of Project Outputs

Green Financing Platform operation expanded

Credit enhancement scheme developed

Access to inclusive finance improved

Status of Implementation Progress (Outputs, Activities, and Issues)
AS of June 2023, seven subprojects implemented will leverage total investment of CNY2.02 billion; three chilled water storage construction subprojects have been implemented; gender training was delivered with more than 60 female managers or investors; CNY527 million of CAB issued; an online operating system for MSMEs has been developed and is operational; 54.16% of PMO staff are female investment managers; all GFP staff have participated in trainings on gender equality and financial inclusion.
Geographical Location
Nation-wide, Anhui, Beijing, Hebei, Henan, Inner Mongolia, Jiangsu, Liaoning, Shaanxi, Shandong, Shanghai, Tianjin, Zhejiang

Safeguard Categories

Environment
FI
Involuntary Resettlement
FI
Indigenous Peoples
FI

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Zhang, Lei
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
China National Investment and Guaranty Corporation

Timetable

Concept Clearance
24 Aug 2020
Fact Finding
07 Sep 2020 to 11 Sep 2020
MRM
14 Oct 2020
Approval
03 Dec 2020
Last Review Mission
-
Last PDS Update
28 Sep 2023

Funding

Loan 4023-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2020 18 Mar 2021 22 Jun 2021 30 Sep 2026 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 367.55
ADB 150.00
Counterpart 217.55
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 82.45 0.00 62%
Cumulative Disbursements 06 Jun 2024 82.45 0.00 62%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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.

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Title Document Type Document Date
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Audited Project Financial Statements (January-December 2023) Audited Project Financial Statements Jun 2024
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Updated Project Administration Manual Project/Program Administration Manual May 2024
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Audited Project Financial Statements (18 March 2021-31 December 2022) Audited Project Financial Statements Jun 2023
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Updated Project Administration Manual Project/Program Administration Manual Sep 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Project Administration Manual Project/Program Administration Manual Jun 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Project Administration Manual Project/Program Administration Manual Dec 2021
Project Agreement for Loan 4023-PRC: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region Green Financing Scale up Project Project/Program Agreements Mar 2021
Loan Agreement (Ordinary Operations) for Loan 4023-PRC: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region Green Financing Scale up Project Loan Agreement (Ordinary Resources) Mar 2021
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region Green Financing Scale up Project: Gender Action Plan Gender Action Plans Nov 2020
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region Green Financing Scale up Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2020
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region Green Financing Scale up Project: Project Administration Manual Project/Program Administration Manual Oct 2020
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region Green Financing Scale up Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Aug 2020

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.

Title Document Type Document Date
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region–Green Financing Scale up Project: Environmental Monitoring Report (January-December 2023) Environmental Monitoring Reports Jan 2024
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Environmental and Social Management System Implementation Report (January-December 2023) ESMS Performance/Implementation Reports Jan 2024
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region–Green Financing Scale up Project: Environmental Monitoring Report (January-December 2022) Environmental Monitoring Reports Jan 2023
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Environmental and Social Management System Implementation Report (January-December 2022) Environmental and Social Monitoring Reports Jan 2023
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project: Anji County Solid Waste Treatment Subproject Social Safeguards Due Diligence Report Safeguards Due Diligence Reports May 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region–Green Financing Scale up Project: Environmental and Social Management System Implementation Report (June-December 2021) Environmental and Social Monitoring Reports Jan 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region–Green Financing Scale up Project: Environmental Monitoring Report (June-December 2021) Environmental Monitoring Reports Jan 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region–Green Financing Scale up Project: Environmental and Social Management System Arrangement Environment and Social Management System Arrangements Oct 2020

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

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Contracts Awarded

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Procurement Plan

None currently available.