fbpx 51418-001: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project | Asian Development Bank

China, People's Republic of: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project

Sovereign (Public) Project | 51418-001 Status: Active

The proposed project will implement three clean heating and cooling subprojects to accelerate air pollution abatement in Shandong Province. The heating and cooling projects proposed are innovative, as they will combine renewable energy technologies and waste heat recovered from industry and power plants to reduce the energy and carbon intensity of heat production and refrigeration, and thereby reduce air pollution and greenhouse gas emissions, as well as the heat island effect in urban areas. An overview of each subproject is provided below.

Project Details

Project Officer
Lu, Lanlan East Asia Department Request for information
Country
  • China, People's Republic of
Sector
  • Energy
 
Project Name Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project
Project Number 51418-001
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3765-PRC: Air Quality Improvement in the Greater Beijing-Tianjin-Hebei for Shandong
Ordinary capital resources US$ 399.91 million
TA 9682-PRC: Air Quality Improvement in the Greater Beijing Tianjin Hebei Shandong Clean Heating and Cooling Project
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 750,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Energy / Conventional energy generation - Energy efficiency and conservation - Renewable energy generation - biomass and waste - Renewable energy generation - geothermal

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed project will implement three clean heating and cooling subprojects to accelerate air pollution abatement in Shandong Province. The heating and cooling projects proposed are innovative, as they will combine renewable energy technologies and waste heat recovered from industry and power plants to reduce the energy and carbon intensity of heat production and refrigeration, and thereby reduce air pollution and greenhouse gas emissions, as well as the heat island effect in urban areas. An overview of each subproject is provided below.

Subproject 1: West Jinan Waste Heat Utilization and Clean Energy Subproject.This subproject will provide heat to urban residents, industrial, and business customers. The technologies to be used on the project include: (i) Large temperature difference waste heat exchange technology is adopted for transporting waste heat from the nearby power plants to the city, which will increase the heat transport capacity by more than 50% than using the standard technology, and same time reduce electricity consumption for cycling pumps. The large temperature difference is achieved by lowering the temperature of return water to the primary pipeline. The waste heat will be used to supply heating to about 80 million m2 of buildings; (ii) Year-round heat supply needs to be provided to an industrial park with industrial and business customers located in west Jinan. A biomass-based combined heating and power plant using biomass briquette made of agriculture waste will supply heating to 1.54 million m2 buildings and will generate electricity of 133 GWh per year. A feedstock assessment showed that only 12% of the available agriculture waste will be consumed by the biomass plant; (iii) Jinan is endowed with geothermal resources. Deep-well geothermal offers an environmentally friendly alternative to the current practice of using coal-based space heating. Deep-well reinjection technology will be used to extract and exchange heat from the underground water, which will then be filtered and recharged back to the same aquifer; and (iv) For a few newly built resident communities not covered by the heating network and where geothermal resource is not available, distributed gas-fired boilers will be used. This subproject enables Jinan to fully utilize waste heat in the neighboring regions, to form a waste heat-dominated heating system, with distributed energy supply from biomass, geothermal and natural gas as supplementary.

Subproject 2: Shanghe Coal-Free Clean Heating Demonstration Subproject. This subproject covers the urban area of Shanghe County, the semi-urban area of 11 towns and 80,000 rural households where coal-fired stoves or coal-fired boilers are common for space heating. The subproject will use geothermal energy as the main heat source to replace coal-fired heating. Other clean options, such as air-source heat pump, are selected as distributed heating source where the pipeline network is not available. Gas-fired boilers will be an auxiliary heat source. This subproject also plans to retrofit total 660,400 m2 of urban buildings and 30,000 rural households to improve their energy efficiency. Based on the available resources, heavily polluting coal-fired stoves in 80,000 rural households will be replaced by air-to-air heat pumps, air-to-water heat pumps, heat-storage radiators, carbon crystal plate radiators and small household gas heaters. This subproject will play an important role in, and have demonstration effect to, other counties in the northern PRC who are also facing similar air quality issues caused by the winter heating.

Subproject 3: East Jinan Low-Emission Combined District Heating and Cooling Subproject. East Jinan is where the central business district located. The large amount of heating and cooling demands in this area requires a low-emission system supplying both heat and cooling. For heating supply, two options will be used: (i) Industrial waste heat through long-distance pipeline will be used to supply heat to 6.2 million m2 buildings; and (ii) Electrode boilers with heat storage will use off-peak electricity at night, and then deliver hot water to the households in the day time to heat up to 700,000 m2 area. For district cooling, two technologies will be adopted: (i) Ice storage, which uses off-peak electricity during the night and stores the cooling energy in the form of ice. During peak hours in the daytime, ice is melted to provide cooling; and (ii) When the cooling demand is large enough, lithium bromide absorption chiller driven by the waste heat from the power plant will be used to deliver cold water to the consumers through long-distance pipelines. The subproject aims to expand the area of waste heat supply, and at the same time use off-peak electricity to produce and store heating and cooling capacity to improve the waste heat utilization and shift peak load.

Project Rationale and Linkage to Country/Regional Strategy The proposed project responds directly to the urgent national, provincial, and municipal government priorities to reduce coal consumption and improve air quality by introducing more efficient methods and advanced technology for heat production, through coal substitution and utilizing cleaner sources of energy such as natural gas and renewable energy, and reducing raw coal burning among households. The proposed project is well aligned with the priorities on managing climate change and environment in ADB's Country Partnership Strategy (2016 2020) and will support the government's priorities in realizing an ecological civilization, articulated in its 13th plan and at the 19th Party Congress for the Central Committee of the Communist Party. It will also support key strategic priorities of tackling climate change, accelerating progress in gender equality and making cities more livable of ADB's Strategy 2030.
Impact Air pollution reduced and public health in the BTH region improved
Project Outcome
Description of Outcome Emissions of pollutants and carbon dioxide in Shandong Province reduced
Progress Toward Outcome GHGs emissions and pollutants reductions are being monitored regularly and are on track.
Implementation Progress
Description of Project Outputs

West Jinan Waste Heat Utilization and Clean Energy Subproject constructed

Shanghe Coal-Free Clean Heating Demonstration Subproject constructed

East Jinan Low-Emission Combined District Heating and Cooling Subproject constructed

Clean heating awareness and capacity to install and maintain clean heating and cooling systems strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) The construction of output 1 has startted. A biomass based combined heat and power plant installation and expansion and district heating network in west Jinan is underway. For output 2, the installation of a 42 meggawatt gas biolder and modular has boilder in Shangha has started. For output 3, the expansion of district heating network in east Jinan has started. Output 4 is to be implemented.
Geographical Location Shandong
Safeguard Categories
Environment A
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified category A for environment. The environmental management plans (EMPs) have been prepared in accordance with ADB's SPS (2009) and government regulations. The environmental impact assessment was disclosed on ADB website on 13 Aug 2018. The project is not expected to cause significant adverse environmental impacts as it will use natural gas, waste heat from thermal power plants, biomass and other renewable energy to replace coal fire based heating and cooling. The project will reduce CO2 and other air pollutions and help improve local air quality.
Involuntary Resettlement The project is classified category C for involuntary resettlement since it does entail permanent or temporary physical or economic displacement of land or properties on the land.
Indigenous Peoples The project is classfied category C for indigenous people and is not expected to have adverse impact on ethnic minorties as the project site is not close to any ethnic minority towns or villages.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with stakehoders was conducted in accordance with ADB's SPS (2009).
During Project Implementation Consultation with stakhoders will continue through pre-construction, construction and operation stages as needed.
Business Opportunities
Procurement Procurement (including consulting services) to be financed by the proposed project will follow ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Lu, Lanlan
Responsible ADB Department East Asia Department
Responsible ADB Division PRC Resident Mission
Executing Agencies
Guangdong Finance Trust Company Limited (GFTC)
14th Floor, No. 481, Dongfengzhong Road, Guangzhou., PRC 510045
Jinan Heating Group
No. 50, Chaoshan Street, Lixia District,
Jinan City, Shadong Province
Jinan Thermal Power Co., Ltd.
No. 36, Jingliu Road, Shizhong District, Jinan City, Shandong Province, PRC
Shandong Provincial Government
People's Republic of China
Timetable
Concept Clearance 06 Jun 2018
Fact Finding 21 Aug 2018 to 22 Aug 2018
MRM 27 Sep 2018
Approval 13 Dec 2018
Last Review Mission -
Last PDS Update 24 Mar 2020

Loan 3765-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2018 20 May 2019 26 Sep 2019 31 Oct 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 710.76 Cumulative Contract Awards
ADB 399.91 13 Dec 2018 84.12 0.00 21%
Counterpart 310.85 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2018 18.33 0.00 5%

TA 9682-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2018 04 Jan 2019 04 Jan 2019 31 Dec 2021 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 750,000.00 0.00 0.00 0.00 0.00 750,000.00 13 Dec 2018 35,940.00

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–Shandong Clean Heating and Cooling Project: Procurement Plan Procurement Plans May 2020
Loan Agreement (Ordinary Operations) for Loan 3765-PRC: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project Loan Agreement (Ordinary Resources) May 2019
Project Agreement for Loan 3765-PRC: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project Project/Program Agreements May 2019
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project: Technical Assistance Report Technical Assistance Reports Dec 2018
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project: Project Administration Manual Project/Program Administration Manual Nov 2018
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2018
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project: Gender Action Plan Gender Action Plans Nov 2018
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Shandong Clean Heating and Cooling Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Apr 2018

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-Shandong Clean Heating and Cooling Project: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Feb 2020
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-Shandong Clean Heating and Cooling Project: East Jinan Low-Emission Combined District Heating Component Updated Initial Environmental Examination Initial Environmental Examination Aug 2019
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-Shandong Clean Heating and Cooling Project: East Jinan Low-Emission Combined District Heating and Cooling Component Initial Environmental Examination (Update) Initial Environmental Examination Oct 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-Shandong Clean Heating and Cooling Project: West Jinan Waste Heat Utilization and Clean Energy Component Updated Initial Environmental Examination Initial Environmental Examination Oct 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-Shandong Clean Heating and Cooling Project: Shanghe Coal-Free Clean Heating Demonstration Component Initial Environmental Examination (Update) Initial Environmental Examination Oct 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-Shandong Clean Heating and Cooling Project: East Jinan Low-Emission Combined District Heating and Cooling Component Initial Environmental Examination Initial Environmental Examination Sep 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-Shandong Clean Heating and Cooling Project: Shanghe Coal-Free Clean Heating Demonstration Component Initial Environmental Examination Initial Environmental Examination Sep 2018
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei—Shandong Clean Heating and Cooling Project: Biomass Combined Heating and Power Generation Component Updated Environmental Impact Assessment Environmental Impact Assessments Sep 2018
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-Shandong Clean Heating and Cooling Project: West Jinan Waste Heat Utilization and Clean Energy Component Initial Environmental Examination Initial Environmental Examination Sep 2018
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei—Shandong Clean Heating and Cooling Project: Biomass Combined Heating and Power Generation Component Draft Environmental Impact Assessment Environmental Impact Assessments Aug 2018

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

Tender Title Type Status Posting Date Deadline
51418-001-PRC: Air Quality Improvement in the Greater Beijing-Tianjin- Hebei Region – Shandong Clean Heating and Cooling Project Invitation for Bids Closed 22 May 2019 04 Jul 2019
Consulting services for project implementation support Firm - Consulting Closed 09 May 2019 07 Jun 2019
Consulting Firm Firm - Consulting Closed 30 Jan 2019 21 Mar 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
JHG-CBDGWGC_CW01:CIVIL WORKS AND EQUIPMENT INSTALL ATION FOR 8.7 KM HEATING PIPES Loan 3765 26 May 2020 JINAN PULI WATER SUPPLY ENGINEERING CO., LTD. SHANDONG PROVINCE, P.R.C. CHINA,PEOPLE'SREP.OF Shandong Provincial Government CONSTRUCTION 4,242,941.40 4,238,221.31
SH_UA_ESRB_CW01:URBAN AREA - ENERGY-SAVING RECONST RUCTION OF BUILDINGS (323,104) Loan 3765 07 May 2020 SHANDONG QUNXIONG CONSTRUCTION ENGINEERING CO SHANGDONG, P.R.C. CHINA,PEOPLE'SREP.OF Shandong Provincial Government CONSTRUCTION 3,979,809.54 3,820,617.16
SH_T_CW01:GEOTHERMAL PUMPS AND ASSOCIATED PIPES IN 5 COMMUNITIES Loan 3765 07 May 2020 JV OF CHINA AEROSPACE CONSTRUCTION GROUP CO., DEVELOPMENT CO., LTD. BEIJING, P.R.C. CHINA,PEOPLE'SREP.OF Shandong Provincial Government CONSTRUCTION 6,986,791.34 6,707,319.68
SH_BOILER:NATURAL GAS HOT WATER BOILER (CAPACITY O F 42 MW) AND MODULAR GAS-FIRED HOT WATER BOILER FO R 1 COMMUNITY. Loan 3765 05 May 2020 JV OF JINAN CONSTRUCTION EQUIPMENT INSTALLATI JINAN,SHANDONG, P.R.C. CHINA,PEOPLE'SREP.OF Shandong Provincial Government SUPPLY OF GOODS 1,833,506.30 1,827,877.77
CONSULTING SERVICES FOR PROJECT IMPLEMENTATION SUP PORT Loan 3765 03 Mar 2020 ENERGY AND ENVIRONMENTAL DEVT RESEARCH CENTER RM 2504, BLDG T-2 DAZU PLAZA, YIZHUANG E CONOMIC TECH DEV AREA, DAXING, BEIJING CHINA,PEOPLE'SREP.OF Shandong Provincial Government CONSULTANCY 506,420.00 506,420.00
JTPC_EHS_HP_GM01/02 GOODS AND MATERIALS FOR 37 KM HEATING PIPELINES Loan 3765 08 Jan 2020 JV CHINA IPPR INTL ENGR AND TAIAN SHUANGTAI 5 XISANHUANBE ROAD, BEIJING, CHINA CHINA,PEOPLE'SREP.OF Shandong Provincial Government SUPPLY OF GOODS 11,941,588.37 11,892,616.67
JTPC-EHS-HP-GM01/03 GOODS AND MATERIALS FOR 37 KM HEATING PIPELINES Loan 3765 08 Jan 2020 JV CHINA IPPR INTL & TAIAN SHUANGTAI BLDG. 5 XISANHUANBEI ROAD, BEIJING, CHINA CHINA,PEOPLE'SREP.OF Shandong Provincial Government SUPPLY OF GOODS 12,285,395.70 12,235,014.06
JTPC-EHS-HP-GMO1/01 GOODS AND MATERIALS FOR 37KM H EATING PIPELINE Loan 3765 27 Dec 2019 JV OF CHINA CTEXIC CORP & JINAN XINGYUAN 99 JIANGUO ROAD, CHAOYANG DIST., BEIJING PRC CHINA,PEOPLE'SREP.OF Shandong Provincial Government SUPPLY OF GOODS 15,144,543.94 15,144,543.94
Capacity Development Technical Assistance 9682 07 Nov 2019 NAREE International Limited (HONG KONG, CHINA) in association with NAREE Consulting Limited, China (CHINA,PEOPLE'SREP.OF) Unit N, 5/F, 4 Cho Yuen Street, Yau Tong Kowloon, Hong Kong, China Consulting Services 399,960.00
SH_RAE_ASHP_AH_B01/02 SUPPLY, INSTALLATION, WARRAN TY & AFTER-SALE SERVICES OF 30,000 SETS OF LOW AMB IENT TEMP AIR SOURCE HEAT PUMP HOT AIR BLOWERS Loan 3765 07 Nov 2019 JV OF CHINA NATIONAL SCIENTIFIC INSTRUMENTS & BLDG 1, NO. 19, TAIYANGGONG MIDDLE ROAD, CHAOYANG DISTRICT, BEIJING CHINA,PEOPLE'SREP.OF Shandong Provincial Government SUPPLY OF GOODS 9,628,674.19 9,515,767.86
SH_RAE_ASHP_AH_B01/01 SUPPLY, INSTALLATION, WARRAN TY & AFTER-SALE SERVICES OF 30,000 SETS OF LOW AMB IENT TEMP AIR SOURCE HEAT PUMP HOT AIR BLOWERS Loan 3765 07 Nov 2019 JV OF CHINA AEROSPACE CONSTRUCTION GROUP CO., NO. 83 WEST 4TH RING ROAD (SOUTH) BEIJIN G CHINA,PEOPLE'SREP.OF Shandong Provincial Government SUPPLY OF GOODS 8,871,472.46 8,832,776.30
SH_RAE_ASHP_AH_B01/03 SUPPLY, INSTALLATION, WARRAN TY & AFTER-SALE SERVICES OF 30,000 SETS OF LOW AMB IENT TEMP AIR SOURCE HEAT PUMP AIR HOT BLOWERS Loan 3765 07 Nov 2019 JV OF CHINA AEROSPACE CONSTRUCTION GROUP CO. NO. 83 WEST 4TH RING ROAD (SOUTH) BEIJIN G CHINA,PEOPLE'SREP.OF Shandong Provincial Government SUPPLY OF GOODS 8,777,594.45 8,739,307.77