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
    East Asia Department
    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
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 By the end of June 2022, an entrusted loan subproject and a guaranty subproject were implemented under the Green Financing Scale up Project, with a total investment of CNY1.44 billion. After completion, they are estimated to reduce 1,414.6 tons of coal consumption yearly, contributing to annual emission reduction of CO2 by 107,558.00 tons, SO2 by 7.4 tons, NOx by 72.1 tons, and PM by 3.44 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) Three subprojects have been financed by the project. To date, disbursement is estimated at 58%.
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 Loan signing was on 18 March 2021 and the loan was declared effective on 22 June 2021.
Responsible ADB Officer Zhang, Lei
Responsible ADB Department East Asia Department
Responsible ADB Division EASI
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 23 Sep 2022

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 Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 367.55 Cumulative Contract Awards
ADB 150.00 17 Jan 2023 75.94 0.00 58%
Counterpart 217.55 Cumulative Disbursements
Cofinancing 0.00 17 Jan 2023 75.94 0.00 58%
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.

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
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
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
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
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.


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

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.