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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD719 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$100 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A SHANXI GAS UTILIZATION PROJECT Public Disclosure Authorized February 26, 2014 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective November 1, 2013) Currency Unit = RMB (Chinese Yuan Renminbi) US$ 1 = RMB 6.10 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS bcma Billion cubic meters per annum NDRC National Development and Reform Commission CBM Coal Bed Methane Nm3 Normal Cubic Meters CHP Combined Heat and Power NOx Nitrogen Oxides CNG Compressed Natural Gas PDO Project Development Objective DA Designated Account PMO Project Management Office EA Environmental Assessment QKNGC Qingxu Kaitong Natural Gas Company EHS Environmental, Health and Safety RAP Resettlement Action Plan EIA Environmental Impact RPF Resettlement Policy Framework Assessment EIRR Economic Internal Rate of Return SCADA Supervisory Control and Data Acquisition EMP Environmental Management Plan SCPTC Shanxi CBM (Natural Gas) Pipeline and Transportation Company FIRR Financial Internal Rate of Return SNGC Shanxi Natural Gas Company FM Financial Management SO2 Sulfur Dioxide GJ Gigajoule GWh Gigawatt Hour SOE State Owned Enterprises GXED Shanxi Guoxin Energy SPAO Shanxi Provincial Audit Office Development Group IA Implementing Agency SPFB Shanxi Provincial Finance Bureau ICB International Competitive Bidding SSS Single Source Selection IPF Investment Project Financing TA Technical Assistance kWh Kilowatt Hour tcm Trillion cubic meters LNG Liquefied Natural Gas TSP Total suspended particulate matter MOF Ministry of Finance WA Withdrawal Applications MWe Megawatt WTP Willingness-to-pay NCB National Competitive Bidding Y Yuan Regional Vice President: Axel van Trotsenburg, EAPVP Country Director: Klaus Rohland, EACCF Sector Director: John Roome, EASSD Sector Manager: Charles Feinstein, EASWE Task Team Leader: Ximing Peng, EASCS CHINA Shanxi Gas Utilization Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 2 C. Higher Level Objectives to which the Project Contributes .......................................... 3 II. PROJECT DEVELOPMENT OBJECTIVE ..................................................................3 A. PDO............................................................................................................................... 3 B. Project Beneficiaries ..................................................................................................... 3 C. PDO Level Results Indicators ....................................................................................... 4 III. PROJECT DESCRIPTION ..............................................................................................4 A. Project Components ...................................................................................................... 4 B. Project Financing .......................................................................................................... 5 C. Lessons Learned and Reflected in the Project Design .................................................. 5 IV. IMPLEMENTATION .......................................................................................................7 A. Institutional and Implementation Arrangements .......................................................... 7 B. Results Monitoring and Evaluation .............................................................................. 7 C. Sustainability................................................................................................................. 7 V. KEY RISKS AND MITIGATION MEASURES ............................................................8 A. Risk Ratings Summary Table ....................................................................................... 8 B. Overall Risk Rating Explanation .................................................................................. 8 VI. APPRAISAL SUMMARY ................................................................................................9 A. Economic and Financial Analysis ................................................................................. 9 B. Technical ..................................................................................................................... 10 C. Financial Management ................................................................................................ 10 D. Procurement ................................................................................................................ 11 E. Social (including Safeguards) ..................................................................................... 11 F. Environment (including Safeguards) .......................................................................... 13 G. Other Safeguards Policies Triggered .......................................................................... 14 Annex 1: Results Framework and Monitoring .........................................................................15 Annex 2: Detailed Project Description .......................................................................................18 Annex 3: Implementation Arrangements ..................................................................................22 Annex 4: Operational Risk Assessment Framework (ORAF) .................................................35 Annex 5: Implementation Support Plan ....................................................................................39 Annex 6: Economic and Financial Analysis ..............................................................................42 Annex 7: Map ...............................................................................................................................50 . PAD DATA SHEET China Shanxi Gas Utilization (P133531) PROJECT APPRAISAL DOCUMENT . EAST ASIA AND PACIFIC EASCS Report No.: PAD719 . Basic Information Project ID Lending Instrument EA Category Team Leader P133531 Investment Project A - Full Assessment Ximing Peng Financing Project Implementation Start Date Project Implementation End Date 28-Mar-2014 31-Dec-2019 Expected Effectiveness Date Expected Closing Date 31-Aug-2014 30-Jun-2020 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Charles M. Feinstein John A. Roome Klaus Rohland Axel van Trotsenburg . Borrower: People’s Republic of China Responsible Agency: Shanxi Guoxin Energy Development Group Corporation Contact: Ms. Sun Libin Title: Director of PMO Telephone 86-351-7216030 Email: [email protected] No.: . Project Financing Data(in USD Million) [ X ] Loan [ ] Grant [ ] Other [ ] Credit [ ] Guarantee Total Project Cost: 295.39 Total Bank Financing: 100.00 Total Cofinancing: 195.39 Financing Gap: 0.00 . Financing Source Amount Borrower 92.39 International Bank for Reconstruction and 100.0 Development Local Sources of Borrowing Country 103.0 Total 295.39 . Expected Disbursements (in USD Million) Fiscal 2015 2016 2017 2018 2019 2020 0000 0000 0000 Year Annual 5.00 15.00 30.00 35.00 10.00 5.00 0.00 0.00 0.00 Cumulati 5.00 20.00 50.00 85.00 95.00 100.00 0.00 0.00 0.00 ve . Proposed Development Objective(s) The proposed Project Development Objective (PDO) is to increase gas utilization to reduce greenhouse gases emission in selected counties of Shanxi province. Components Component Name Cost (USD Millions) Distributed Gas-fired CHP Plants Component 260.29 Expansion of Gas Distribution Network Component 32.35 Technical Assistance Component 2.75 . Institutional Data Sector Board Energy and Mining . Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Energy and mining Oil and gas 60 60 Energy and mining Thermal Power 40 40 Generation Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Environment and natural resources Climate change 100 management Total 100 . Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ] respects? . Does the project require any waivers of Bank policies? Yes [ ] No [ X ] Have these been approved by Bank management? Yes [ ] No [ X ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ ] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous
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