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 Name||Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region--Henan Cleaner Fuel Switch Investment Program|
|Country||China, People's Republic of
|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
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|
|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|
|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)|
|Geographical Location||Nation-wide, Henan|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Yamamura, Shigeru|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||EASI|
Henan Provincial Government (HPG)
Planning & Econ. Commission of HenanProv
23, Weier Road, Zhengzhou
People's Republic of China
|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||05 Dec 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|05 Dec 2019||26 May 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||05 Dec 2019||0.00||0.00||0%|
|Cofinancing||0.00||05 Dec 2019||0.00||0.00||0%|
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|Title||Document Type||Document Date|
|Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region Henan Cleaner Fuel Switch Investment Program: Updated Program Safeguard Systems Assessment||Program Safeguard Systems Assessments||Jul 2020|
|Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region Henan Cleaner Fuel Switch Investment Program: Program Safeguard Systems Assessment||Program Safeguard Systems Assessments||Sep 2019|
Evaluation Documents See also: Independent Evaluation
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ADB's First Results-Based Lending Program to Improve PRC's Air QualityADB 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.
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