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 | ||||
| Project Number | 52007-001 | ||||
| Country | China, People's Republic of |
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| Project Status | Active | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector | Energy / Oil and gas transmission and distribution - Renewable energy generation - biomass and waste |
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| 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 | |
| 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) | Loan became effective on 21 August 2020. |
| 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 | Cowlin, Shannon C. |
| 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 | 16 Oct 2020 |
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 | 05 Dec 2019 | 0.00 | 0.00 | 0% |
| Counterpart | 114.20 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 05 Dec 2019 | 0.00 | 0.00 | 0% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | - | - | - | - | 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.
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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 Henan Cleaner Fuel Switch Investment Program: Updated Program Safeguard Systems Assessment | Program Safeguard Systems Assessments | Dec 2020 |
| 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
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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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.