China, People's Republic of: Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region--Henan Cleaner Fuel Switch Investment Program
The proposed program aims to switch coal to cleaner fuel for residential, commercial, and industrial use for air pollution reduction in Henan Province, which is one of major pollutant provinces in the greater BTH Region. Henan Province has the largest population in PRC. In 2018, the primary energy is highly dependent upon coal which accounts for around 77.6% as compared to 59.0% in the national average. While Henan Province has reduced the dependence on coal from 84.3% in 2010, the province becomes one of the major contributors of air pollution in the greater BTH region. Henan Province records it air pollutant emissions in terms of PM2.5 (62 ug/m3), particulate matter less than 10 micrometer in diameter (PM10) (106 ug/m3), SO2 (21 ug/m3), and NOx (41 ug/m3), all of which are far above the national air quality category I standard, and of the World Health Organization standard.
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--Henan Cleaner Fuel Switch Investment Program | ||||||||
| Project Number | 52007-001 | ||||||||
| Country / Economy | China, People's Republic of |
||||||||
| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan |
||||||||
| Source of Funding / Amount |
|
||||||||
| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
||||||||
| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
||||||||
| Sector / Subsector | Energy / Oil and gas transmission and distribution - Renewable energy generation - biomass and waste |
||||||||
| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||||||
| Description | The proposed program aims to switch coal to cleaner fuel for residential, commercial, and industrial use for air pollution reduction in Henan Province, which is one of major pollutant provinces in the greater BTH Region. Henan Province has the largest population in PRC. In 2018, the primary energy is highly dependent upon coal which accounts for around 77.6% as compared to 59.0% in the national average. While Henan Province has reduced the dependence on coal from 84.3% in 2010, the province becomes one of the major contributors of air pollution in the greater BTH region. Henan Province records it air pollutant emissions in terms of PM2.5 (62 ug/m3), particulate matter less than 10 micrometer in diameter (PM10) (106 ug/m3), SO2 (21 ug/m3), and NOx (41 ug/m3), all of which are far above the national air quality category I standard, and of the World Health Organization standard. Since the air pollution is largely sourced from coal burning, the medium and long-term energy development plan in Henan province (2012-2030) was issued in 2012 to accelerate renewable energy penetration into the grid, enhance energy efficiency, and expand natural gas supply network. In 2018, the provincial government also issued the Three Year Action Plan for Henan Province to Combat Blue Sky War (2018 2020), which targeted to (i) reduce PM2.5 to 58 ug/m3 by 2020, and (ii) achieve 35 ug/m3 of national air quality category II standard by 2023. There are wide-ranging actions, which primarily focus on reduction of coal consumption, demolition of energy inefficient coal fired boilers, expansion of cleaner district heating systems, and promotion of gas or the other cleaner energy use. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The proposed program for ADB financing aims to construct gas transmission and distribution pipelines to deliver natural gas and alternative locally available clean gas (biogas) to urban and rural customers, who heavily rely on use of coal in primary energy use. Overall cleaner fuel switch investment program has been implemented since June 2018. It already outreached 300,000 households by the end 2018 and targets to outreach 3.5 million households by 2030. Upon successful completion of the investment program, 1,540 million normal cubic meter (Nm3) of cleaner fuel will be supplied and thereby 6.7 million tons of carbon dioxide emission, 84,583 tons of SO2, 15,750 tons of PM emission, and 8,458 tons of NOx emission to be avoided. | ||||||||
| Impact | Air quality improved with fuel switch from coal to gas | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Increased use of cleaner fuels by residential, commercial, and industrial customers in Henan Province, within the greater Beijing- Tianjin- Hebei region |
| Progress Toward Outcome | By the end of 30 June 2021, (i) accumulatively 844,757 consumers connected to natural gas, (ii) accumulatively 28.51 million Nm3 of gas consumed, and (iii) 600,000 tons of coal use reduced, along with the reduction of emission of 900,000 tons of carbon dioxide, 5,621 tons of SO2, 1,805 tons of PM2.5, and 2,252 tons of NOx. |
| Implementation Progress | |
| Description of Project Outputs | Gas network systems expanded Alternative clean fuel developed Awareness of clean fuel use enhanced among female customers Institutional and organizational capacity enhanced |
| Status of Implementation Progress (Outputs, Activities, and Issues) | YTNE formulated and implemented the Financial Management System, Measures for Foreign Exchange Risk Management, Comprehensive Risk Management System, Internal Control Management System, and Internal Audit Charter.2019 IVA Report has confirmed the updating of their Financial and Risk Management System. They have adopted a social and environment safeguard management guidelines as well. YTNE has actually (i) improved the enterprise resource system; (ii) engaged 430 employees by the end of the year, including 316 male employees and 114 female employees (accounting for 27%).According to the medium and long-term plan of the program, YTNE made a strategic cooperation with CDB in the coal-to-gas program. After the completion of RBL, CDB will continue to cooperate with YTNE to provide loans to support the construction of the program.430 staff of YTNE as of October 2020 in total, including 316 men and 114 women, with women accounting for 27%.By end of 2020, 18,500 km of natural gas transmission and distribution network has been installed.2019 IVA report confirmed that 11,167.16 km of natural gas pipeline has been installed. By end of 2020, 3 gas stations have been installed. Not included in 2019 IVA report. By the end of 2020, YTNE completed the installation of 400,000 gas stoves. Not included in 2019 IVA report. By end of 2020, the site selection, project approval, bidding and procurement completed for biogas production. By end of 2020, 209 programs have been completed, with 50% of women participants.2019 IVA report confirms that 20 programs have been completed and based on the signed attendance sheet 56.46% were women. By the end of 30 June 2021, (i) 23,100km of natural gas transmission and distribution network installed; (ii) 3 gas stations installed; (iii) 416 gender-sensitive cleaner fuel use-awareness outreach programs completed, with women accounting for 50% of participants, and (iv) site selection, project approval, bidding and procurement completed. |
| Geographical Location | Nation-wide, Henan |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Zhang, Lei |
| Responsible ADB Department | East Asia Department |
| Responsible ADB Division | EASI |
| Executing Agencies |
Henan Provincial Government (HPG) Planning & Econ. Commission of HenanProv 23, Weier Road, Zhengzhou People's Republic of China |
| Timetable | |
|---|---|
| Concept Clearance | 28 Jun 2019 |
| Fact Finding | 05 Aug 2019 to 15 Aug 2019 |
| MRM | 26 Sep 2019 |
| Approval | 05 Dec 2019 |
| Last Review Mission | - |
| Last PDS Update | 29 Sep 2021 |
Loan 3879-PRC
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 05 Dec 2019 | 26 May 2020 | 21 Aug 2020 | 30 Jun 2025 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 414.20 | Cumulative Contract Awards | |||
| ADB | 300.00 | 17 Jun 2022 | 62.87 | 0.00 | 21% |
| Counterpart | 114.20 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Jun 2022 | 62.87 | 0.00 | 21% |
| 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.
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.
-
ADB's First Results-Based Lending Program to Improve PRC's Air Quality
ADB has approved a $300 million result-based lending program with private sector involvement to continue improving the air quality in Henan Province in the greater Beijing–Tianjin–Hebei region of the PRC.
Tenders
No tenders for this project were found.
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.