China, People's Republic of : Green Transport Finance

Nonsovereign Project | 51056-001

A senior loan in USD with tenor of up to 8 years.

Project Details

  • Project Officer
    Doukidis, Doukas
    Private Sector Operations Department
    Request for information
  • Approval Date
    30 August 2017
  • Country/Economy
    China, People's Republic of
  • Modality
  • Sector
    • Finance
Project Name Green Transport Finance
Project Number 51056-001
Borrower / Company Minsheng Financial Leasing Co. Ltd.
Country / Economy China, People's Republic of
Location Nation-wide
Type or Modality of Assistance
3558 Loan Ordinary capital resources USD 200.00 million Approved
82 B-Loan Other USD 200.00 million Approved
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Finance sector development

Transport / Urban public transport

Gender No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Financial Institutions Division
Responsible ADB Officer Doukidis, Doukas
Project Sponsor(s)
Description A senior loan in USD with tenor of up to 8 years.
Objectives and Scope MFL will use the proceeds of the ADB loan to finance (i) green vehicles, which include green buses as well as other commercial vehicles and passenger cars; and (ii) batteries and charging stations for electric vehicles. The green vehicle eligible for ADB financing will need to meet Euro V-equivalent emission standards and fall within at least one of these categories: (i) energy-efficient and new-energy vehicles as defined by the Government of the PRC; and (ii) vehicles running on cleaner fuel such as compressed or liquefied natural gas, or biomethane.
Status of Development Objectives Not on track. The cancellation of B-Loan and MFL's revised plans not to grow in the business segment for which the B-Loan was targeted has resulted to the underperformance of development results.
Status of Operation/Construction

A-Loan has been fully disbursed and repaying. Due to lack of green projects, B-Loan was not utilized and cancelled.

Linkage to Country/Regional Strategy The project supports three strategic priorities identified by the Midterm Review of Strategy 2020: (i) environment and climate change, (ii) middle-income countries, and (iii) private sector development and operations. The proposed project supports the country partnership strategy priorities of managing climate change and the environment and supporting inclusive economic growth. It will also support finance sector development, a private sector operational focus identified in the country partnership strategy.The project fully supports ADB's Sustainable Transport Initiative, which focuses on creating transport systems that are accessible, safe, affordable, and environment-friendly. The Sustainable Transport Initiative Operational Plan states that ADB should help developing member countries overcome sector obstacles through the wider adoption of sustainable transport, and identifies urban transport as an area in which ADB should scale-up support for sustainability.
Safeguard Categories
Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects MFL's operations under the ADB loan have minimal or no adverse environmental impacts. MFL's 2018 annual environmental and social monitoring report confirmed that A-loan was only used for bus leasing, and category C on environment. MFL adopted an E&S screening checklist for the battery stations to ensure that ADB's B-loan facility will only be utilized for Category C subprojects.
Involuntary Resettlement MFL's operations under the ADB loan are unlikely to entail impacts on involuntary resettlement.
Indigenous Peoples MFL's operations under the ADB loan are unlikely to entail impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation MFL works with bus companies to understand their requirements. These companies are typically owned by local governments that are implementing broader government policy for a modal shift from private to public transport as well as the large-scale deployment of green vehicles. Through its longer tenor leases and close relationships with electric bus manufactures, MFL helps these companies deliver improved services to their stakeholders.
Timetable for assistance design, processing and implementation
Concept Clearance 14 Feb 2017
Credit Committee Meeting 28 Jun 2017
Approval 30 Aug 2017
Last PDS Update 03 Oct 2023

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
Green Transport Finance: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Aug 2017
Green Transport Finance: Report and Recommendation of the President Reports and Recommendations of the President Aug 2017

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.



Related Publications

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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.

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