fbpx 52007-001: Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region--Henan Cleaner Fuel Switch Investment Program | Asian Development Bank

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

Sovereign (Public) Project | 52007-001 Status: Approved

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
Yamamura, Shigeru 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--Henan Cleaner Fuel Switch Investment Program
Project Number 52007-001
Country China, People's Republic of
Project Status Approved
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
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)
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 Yamamura, Shigeru
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 05 Dec 2019

Loan 3879-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 114.20 Cumulative Disbursements
Cofinancing 0.00 05 Dec 2019 0.00 0.00 0%

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