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 Name | Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Green Financing Scale up Project | ||||
| Project Number | 51033-001 | ||||
| Country | China, People's Republic of |
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| Project Status | Approved | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector |
Energy / Energy efficiency and conservation - Renewable energy generation - biomass and waste Finance / Finance sector development |
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| Gender Equity and Mainstreaming | 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 (2015 2020), which aims at mutually reinforcing the government actions in air pollution reduction in the greater Beijing Tianjin Hebei (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 | |
| 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) | |
| 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. |
| Responsible ADB Officer | Zhang Lei |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | EASI |
| Executing Agencies |
China National Investment and Guaranty Corporation 9 Floor, Office Bldg, No. 100 Xisanhuan Beilu, Huadian District, Beijing, PRC 100048 |
| 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 | 30 Mar 2021 |
Loan 4023-PRC
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 03 Dec 2020 | 18 Mar 2021 | - | 30 Sep 2026 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 650.78 | Cumulative Contract Awards | |||
| ADB | 150.00 | 03 Dec 2020 | 0.00 | 0.00 | 0% |
| Counterpart | 500.78 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 03 Dec 2020 | 0.00 | 0.00 | 0% |
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.
| Title | Document Type | Document Date |
|---|---|---|
| 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
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Related Publications
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