China, People's Republic of: Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region--Henan Cleaner Fuel Switch Investment Program

Sovereign Project | 52007-001

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
Loan 3879-PRC: Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region-Henan Cleaner Fuel Switch Investment Program
Ordinary capital resources US$ 300.00 million
Loan: Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region--Henan Cleaner Fuel Switch Investment Program
China Development Bank US$ 206.50 million
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

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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: Pipeline Construction in Hebi County Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Pipeline Construction in Baofeng County Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Pipeline Construction in Weishi County Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: 2020 Subprojects Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Pipeline Construction in Yexian County Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Pipeline Construction in Lankao County Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Pipeline Construction in Wugang City Resettlement Due Diligence Report Safeguards Due Diligence Reports Mar 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Social Monitoring Report (July-December 2021) Social Monitoring Reports Feb 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Feb 2022
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Aug 2021
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Social Monitoring Report (January-June 2021) Social Monitoring Reports Jul 2021
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region: Henan Cleaner Fuel Switch Investment Program - Ye County Cleaner Fuel Switch Subproject Initial Environmental Examination Initial Environmental Examination Feb 2021
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region: Henan Cleaner Fuel Switch Investment Program - Weishi County Cleaner Fuel Switch Subproject Initial Environmental Examination Initial Environmental Examination Feb 2021
Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region: Henan Cleaner Fuel Switch Investment Program - Lankao County Cleaner Fuel Switch Subproject Initial Environmental Examination Initial Environmental Examination Feb 2021
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Social Monitoring Report (June-December 2020) Social Monitoring Reports Jan 2021
Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—Henan Cleaner Fuel Switch Investment Program: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Jan 2021
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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Procurement Plan

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