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China: Beijing Air Quality Improvement and Coal Replacement

SUMMARY

STATUS
Approved
MEMBER
China
SECTOR
Energy
E&S CATEGORY
Category B
PROJECT NUMBER
000037

FINANCING

PROJECT TYPE
Stand-alone
APPROVED FUNDING
USD250 million
FINANCING TYPE
Nonsovereign

TIMELINE

CONCEPT REVIEW
July 3, 2017
APPRAISAL REVIEW/FINAL REVIEW
November 6, 2017
FINANCING APPROVAL
December 8, 2017

OBJECTIVE

The objective is to improve air quality and reduce air pollutions, such as CO2 emissions, particulate matter, SO2 emissions, and NOx emissions, through replacing coal with natural gas in rural villages in outskirts of Beijing.

DESCRIPTION

The project will finance the construction of natural gas distribution networks in and around 510 rural villages of Beijing, including the installation of low-pressure village gas pipelines, household connections and household gas consumption meters. Upon completion, the Project will bring large economic and environmental benefits, including annual energy savings of around 113,000 tons of standard coal equivalent. Net of emissions of burning natural gas, the Project is estimated annually to reduce CO2 emissions by 595,700 tons, PM2.5 by 3,700 tons, SO2 emissions by 1,488 tons, and NOx emissions by 4,442 tons. The Project will also have a substantial social impact. After coal consumption is eliminated in rural villages, ambient air quality and the quality of the environment in Beijing will improve, helping to mitigate the risk of respiratory diseases, cardiovascular disease, and ischemic heart disease. The most vulnerable people to such adverse effects in both rural and urban Beijing, such as children, women, the sick and the elderly, will benefit most.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

Per the Bank’s Environmental and Social Policy, the Project is assigned as Category B. As part of Project preparation, the environmental and social impacts were assessed and mitigation measures proposed in an Environmental and Social Management Plan (ESMP). Women and children are considered to be the major beneficiaries of coal-to-gas conversion, due to improvements in both outdoor and indoor air quality and the change of cooking fuel to clean energy. In addition, residents from project villages or nearby can be hired for construction activities. The Bank’s environmental and social due diligence, including review of project information and the ESMP, site visits, and meetings with the client and their consultant, indicated that there will not be any land acquisition or displacement of population in the Project areas.

Please review the project summary for additional information.

PROJECT TEAM LEADER

Victor Salgado

Senior Portfolio Management Officer – Loans

victor.salgado@aiib.org

BORROWER

Kang Yan

Manager
Finance Department
Beijing Gas

kangyan@bjgas.com

 

IMPLEMENTING ENTITY

Bei Kang Yan

Manager Finance Department Beijing Gas

Kangyan@bjgas.com

 

PROJECT DOCUMENTS

CLIENT/COFINANCING PARTNER DOCUMENTS

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