The project involves (i) a loan of up to US$200 million equivalent to Sinopec Green Energy Geothermal Development (SGE) to support the company's construction and operation of a series of geothermal-based district heating networks; (ii) a loan of up to US$50 million to Arctic Green Energy , a shareholder in SGE, to refinance certain existing debt which restricts AGE's ability to invest in SGE's expansion.
|Project Name||Geothermal District Heating Project|
|Borrower/Company||Arctic Green Energy Corporation Private Limited
Sinopec Green Energy Geothermal Development Company Limited
|Country||China, People's Republic of
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Energy / Energy utility services
|Gender Equity and Mainstreaming||No gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Infrastructure Finance Division 2|
|Responsible ADB Officer||Bhattacharya, Aditi|
|Project Sponsor(s)||Sinopec Green Energy Geothermal Development Company Limited
|Description||The project involves (i) a loan of up to US$200 million equivalent to Sinopec Green Energy Geothermal Development (SGE) to support the company's construction and operation of a series of geothermal-based district heating networks; (ii) a loan of up to US$50 million to Arctic Green Energy , a shareholder in SGE, to refinance certain existing debt which restricts AGE's ability to invest in SGE's expansion.|
|Objectives and Scope||The project will support the construction, acquisition, rehabilitation, and operation of a series of urban district heating systems based on geothermal energy. ADB will extend financing on a subproject-by-subproject basis, subject to defined environmental, social, development, and financial criteria. Subprojects will be identified during the project implementation stage. By facilitating the delivery of clean and reliable heating services, the project helps mitigate air pollution and climate change, which are key development challenges for the PRC.|
|Linkage to Country/Regional Strategy||The project addresses three of the five strategic priorities of ADB's country partnership strategy for the PRC, 2016 2020: (i) managing climate change and the environment (in the area of environmental sustainability and pollution control), (ii) supporting inclusive economic growth (in the area of inclusive and green cities development), and (iii) private sector development. With over 70% of SGE's investment pipeline targeting the greater Beijing-Tianjin-Hebei region, the project complements ADB's sovereign initiatives to address the region's severe air pollution. Finally, the project in in line with ADB's Energy Policy and its Urban Operational Plan, 2012-2020.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project is classified as category B for environment. Potential environmental impacts are generally site-specific, reversible, and mostly associated with drilling and construction activities. Impacts during operations impacts may arise in subprojects that do not attain high rates of reinjection of geothermal tail-water. Anticipated environmental impacts will be avoided by implementing generally recognized good practices as well as preventive and control measures, including tail-water management policies. A value addition of the project will be the establishment of a corporate-level Environmental and Social Management System (ESMS), designed in consultation with ADB, that will operate in parallel with the company's existing site-level policies and procedures.|
|Involuntary Resettlement||The project is categorized B for involuntary resettlement. Due diligence found no loss of shelter or residential land due to land acquisition on past subprojects, and none is expected on future subprojects. Temporary non-major economic displacement during well drilling and pipe laying, as well as permanent non-major economic displacement in case of heat central construction in rural villages, may arise. SGE will enhance its current land access and acquisition procedures, developed in accordance with national requirements, to enable compliance of future ADB-funded subprojects with SPS requirements.|
|Indigenous Peoples||The project is categorized C for indigenous peoples, since no distinct and vulnerable ethnic minority communities were found present in SGE's existing sites. Ethnic minority screening procedures are anticipated to be developed in the ESMS to identify, mitigate, and manage any potential adverse or beneficial impacts of ADB-funded subprojects.|
|Stakeholder Communication, Participation, and Consultation||Due diligence found that people affected by construction impacts are consulted in the environmental impact assessment and land acquisition processes as required by law. SGE will prepare a procedure for grievance resolution and ongoing consultation as part of the impact assessment action plan requirements for each subproject. End users' needs are captured in building designs, which the project will incorporate. The project ensures adequate participation of civil society organizations through the local governments master planning activity for the cities in which the heating system concessions will operate.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||09 Jun 2017|
|Credit Committee Meeting||14 Nov 2017|
|Approval||14 Dec 2017|
|Last PDS Update||07 Jul 2020|
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|
|Geothermal District Heating Project: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2017|
|Geothermal District Heating Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Jun 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.
|Title||Document Type||Document Date|
|Geothermal District Heating Projects: Environmental and Social Compliance Audit Report||Environment and Social Compliance Audit Reports||Dec 2018|
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
ADB Signs Landmark Project with Icelandic, Chinese Venture to Promote Zero-Emissions HeatingADB today signed facilities of a total of $250 million in loans to Arctic Green Energy Corporation and Sinopec Green Energy Geothermal Company Limited to expand environmentally sustainable district heating services in the PRC.