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Hebei Air Pollution Prevention and Control Program

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Hebei Air Pollution Prevention and Control Program Document of THE WORLD BANK Public Disclosure Authorized FOR OFFICIAL USE ONLY Report no. 105757 - CN PROGRAM APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT US$500 MILLION Public Disclosure Authorized TO THE PEOPLE’S REPUBLIC OF CHINA FOR A HEBEI AIR POLLUTION PREVENTION AND CONTROL PROGRAM May 13, 2016 Public Disclosure Authorized Environment and Natural Resources Global Practice 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 May 13, 2016) Currency Unit = Chinese renminbi (RMB) US$1.0 = RMB 6.40 ABBREVIATIONS AND ACRONYMS AQM Air Quality Management AAQM Ambient Air Quality Monitoring ADB Asian Development Bank APPCAP Air Pollution Prevention and Control Action Plan CCICED China Council for International Cooperation CEM Continuous Emission Monitoring CMAQ Community Multi-scale Air Quality modeling system CNAO China National Audit Office CNG Compressed Natural Gas DLIs Disbursement-linked Indicators DRC Development and Reform Commission EA Environmental Assessment EEA European Environment Agency EIA Environment Impact Assessment EPB Environmental Protection Bureau ESSA Environmental and Social Systems Assessment EU European Union EV Electric Vehicle FB Finance Bureau FFA Formula Fertilizer Application GAINS Greenhouse Gas and Air Pollution Interactions and Synergies GEF Global Environmental Facility GDP Gross Domestic Product GFMIS Government Fiscal Management Integrated Platform GoC Government of China GoH Government of Hebei GPAO Government Procurement Administration Office GPL Government Procurement Law of China GRM Grievance Redress Mechanism GRS Grievance Redress Service HAP Hebei Pollution Prevention and Control Implementation Action Plan HGPAM Hebei Provincial Government Procurement Administration Measures HPAO Hebei Provincial Audit Office IHD Ischemic Heart Disease IRGPL Implementation Regulations of the GPL KfW Kreditanstalt für Wiederaufbau LPG Liquefied Petroleum Gas M&E Monitoring and Evaluation MEP Ministry of Environmental Protection MOF Ministry of Finance NDRC National Development and Reform Commission NEV New Energy Vehicle NH3 Ammonia NOx Nitrogen Oxides NUE Nitrogen Use Efficiency PAP Program Action Plan PDO Program Development Objective PforR Program-for-Results PM Particulate Matter PMEH Pollution Management and Environmental Health Program PWE Population Weighted Exposure QAQC Quality Assurance/ Quality Control RED Resource and Environment Division SO2 Sulfur Dioxide SOP Standard Operational Procedures TOR Terms of Reference TSP Total Suspended Particulate VOC Volatile Organic Compound WGO Working Group’s Office WHO World Health Organization Regional Vice President: Victoria Kwakwa Global Practice Vice President: Laura Tuck Country Director: Bert Hofman Practice Manager: Iain Shuker Task Team Leader(s): Garo J Batmanian PEOPLE’S REPUBLIC OF CHINA Hebei Air Pollution Prevention and Control Program Table of Contents I. STRATEGIC CONTEXT .................................................................................................................... 1 A. Country Context ........................................................................................................................................ 1 B. Sectoral (or Multisectoral) and Institutional Context................................................................................ 1 C. Relationship to the CAS/CPF and Rationale for Use of Instrument ......................................................... 5 II. PROGRAM DESCRIPTION .............................................................................................................. 6 A. Program Scope ........................................................................................................................................ 6 B. Program Development Objective/s (PDO) ............................................................................................. 15 C. Program Key Results, Disbursement Linked Indicators and Verification Protocols .............................. 15 D. Key Capacity Building and Systems Strengthening Activities ............................................................... 19 III. PROGRAM IMPLEMENTATION .................................................................................................. 20 A. Institutional and Implementation Arrangements ..................................................................................... 20 B. Results Monitoring and Evaluation......................................................................................................... 22 C. Disbursement Arrangements ................................................................................................................... 23 IV. ASSESSMENT SUMMARY ............................................................................................................. 23 A. Technical ................................................................................................................................................. 23 B. Fiduciary ................................................................................................................................................. 28 C. Environmental and Social ....................................................................................................................... 30 D. Integrated Risk Assessment .................................................................................................................... 33 E. Program Action Plan ............................................................................................................................... 33 Annex 1: Detailed Program Description ................................................................................................. 35 Annex 2: Results Framework Matrix ...................................................................................................... 43 Annex 3: Disbursement Linked Indicators, Disbursement Arrangements, and Verification Protocols .............................................................................................................................................. 46 Annex 4: Summary Technical Assessment ............................................................................................. 53 Annex 5: Summary Fiduciary Systems Assessment .............................................................................. 84 Annex 6: Summary Environmental and Social Systems Assessment .................................................. 90 Annex 7: Systematic Operations Risk Rating (SORT) ........................................................................ 101 Annex 8: Program Action Plan .............................................................................................................. 102 Annex 9: Implementation Support Plan ............................................................................................... 104 PAD DATA SHEET People’s Republic of China Hebei Air Pollution Prevention and Control Program PROGRAM APPRAISAL DOCUMENT East Asia and Pacific Environmental and Natural Resources Global Practice . Basic Information Date: May 13, 2016 Sectors: Other Industry (55%), General Agriculture, Fishing and Forestry (15%) General Energy (15%), Urban Transport (15%) Country Director: Bert Hofman Themes: Pollution Management and Environmental Health (60%) Other Urban Development (20%) Other Rural Development (10%) Environmental Policies and Institutions (10%) Practice Manager Iain Shuker Global Practice Vice President: Laura Tuck Program ID: P154672 Team Leader(s): Garo Batmanian Program Implementation Period: Start Date: June 6, End Date: December 31, 2016 2018 Expected Financing Effectiveness July 6, 2016 Date: Expected Financing Closing Date: December 31, 2018 Program Financing Data [ X ] Loan [ ] Grant [ ] Other [ ] Credit i For Loans/Credits/Others (US$, millions): Total Program Cost: 968 Total Bank Financing : 500 Total Cofinancing: 468 Financing Gap : 0 Financing Source Amount BORROWER 468 IBRD 500 Total 968 Borrower: People’s Republic of China Responsible Agency: The Development & Reform Commission of Hebei Province Contact: Qiao Xiaolin Title: Deputy Director General Telephone No.: 0311-8860051 Email: [email protected] Expected Disbursements (in US$, millions) Fiscal Year 17 18 19 Annual 170 260 70 Cumulative 170 430 500 Program Development Objective(s) To reduce emissions of specific air pollutants in the key sectors in Hebei. Compliance Policy Does the program depart from the CAS in content or Yes [ ] No [X] in other significant respects? Does the program require any waivers of Bank Yes [ ] No [X] policies applicable to Program-for-Results operations? Have these been approved by Bank management? Yes [ ] No [X] Is approval for any policy waiver sought from the Yes [ ] No [X] Board? Overall Risk Rating: Substantial ii Legal Covenants Name Recurrent Due Date Frequency Program Institutions X Description of Covenant: PA, Schedule, Section I.C.1: Hebei shall, throughout implementation, maintain the High-level Provincial Working Group, the Working Group Office, and the Coordination Office; all with composition, powers, functions, staffing, facilities and other resources satisfactory to the Bank, and the responsibilities described in the PA. Name Recurrent Due Date Frequency Program Action Plan
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