Restricted Distr. OCG/EVG/R.2 24 February 2005 UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ORIGINAL: ENGLISH EVALUATION OF THE COUNTRY SERVICE FRAMEWORK (CSF) UNIDO Contribution to Environmentally Sustainable Industrial Development of China Report of the Evaluation Mission* Mr. Jaroslav NAVRATIL Evaluation Consultant, Team Leader Mr. Klaus BILLAND Deputy to the Director, Asia and the Pacific Bureau, UNIDO Mr. Yong LIU National Consultant * The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers and boundaries. Mention of company names and commercial products does not imply the endorsement of UNIDO. The views and opinions of the team do not necessarily reflect the views of UNIDO. This document has not been formally edited. ii Table of Contents Map of the People’s Republic of China 1 Abbreviations and acronyms used in the report 2 VOLUME I: PROGRAMME-WIDE EVALUATION 5 EXECUTIVE SUMMARY 5 FOLLOW-UP ON RECOMMENDATIONS 11 1. INTRODUCTION 16 2. THE CHINA COUNTRY SERVICE FRAMEWORK: AN OVERVIEW 18 2.1 Evolution of UNIDO-China cooperation 18 2.2 CSF in the context of socio-economic development in China 19 2.3 Objectives, scope and structure of the CSF 21 2.4 Funds mobilization 24 2.5 Status of implementation 25 2.6 Coordination with UNDAF and other programmes 28 2.7 CSF management 29 3. SELF-EVALUATION OF NON -MP PROJECTS 31 3.1 Projects subject to self-evaluation 31 3.2 Completion of outputs 31 3.3 Performance rating 31 4. EVALUATION FINDINGS ON NON -MP PROJECTS 33 4.1 Relevance and design 33 4.2 Ownership 35 4.3 Implementation and management 37 4.4 Cooperation within CSF and with other programmes 39 4.5 Results 41 4.6 Sustainability 47 5. UNIDO MONTREAL PROTOCOL PROGRAMME IN CHINA 49 5.1 Scope of the UNIDO MP programme in China 49 5.2 Impact 50 5.3 Findings from a plant visit 51 6. CONCLUSIONS 52 7. RECOMMENDATIONS 58 8. LESSONS LEARNED 61 VOLUME II: EVALUATION NOTES ON PROJECTS VISITED BY THE EVALUATION TEAM 67 ADJUSTED COMPON ENT 4: ENERGY EFFICIENCY/PERSISTENT ORGANIC POLLUTANTS (POPs) 67 PSN 2: Energy Conservation and GHG Emissions Reduction in Chinese Township and Village Enterprises – Phase II ...............................................................................................................................67 PSN 3: China Motor System Energy Conservation Programme........................................................................73 PSN 4: Preliminary Assessment to identify the Requirements for Developing a National Implementation Plan in the People's Republic of China as a First Step to Implement the Stockholm Convention on Persistent Organic Pollutants (POPs)...............................................................................................78 ADJUSTED COMPONENT 5: ENVIRONMENTAL MAN AGEMENT 81 PSN 7: Environmentally Sound Technologies Programme in China.................................................................81 iii PSN 10: Evaluation and Adjustment of China´s Industrial Policies for Key Industries to Promote Sustainable Development.........................................................................................................................86 ADJUSTED COMPONENT 6: TECHNOLOGY AND INVESTMENT PROMOTION 89 PSN 15: Integrated Programme for Cleaner and Safer Pest Control in Selected Backward Areas of China Sub Prog.1: Promotion of Seed Dressing Application in Yunnan, Guangxi, Guizhou ....89 PSN 17: Initial Establishment of the International Centre on Small Hydropower (IC-SHP) in Hangzhou, China........................................................................................................................................92 PSN 18: Establishment of Climate-Friendly Technology Financing Facility.....................................................95 PSN 21: Investment Promotion Center Shanghai (SIPC) – Assistance to Shanghai Foreign Economic Relations and Trade Commission/Shanghai Foreign Investment Commission in Inward and Outward Investment Promotion................................................................................................................99 PSN 23: Promotion of High Technology and Cooperation Partnership for Sustainable Development (ITPC) - Shenzhen ...................................................................................................................................102 PSN 24: Development of Three-Way Catalysts for Automobile Emission Pollution Control.......................106 PSN 27: Strengthening the Investment and Technology Promotion System (ITPS) through Capacity Building and Networking..........................................................................................................................108 PSN 28/29: Enhancing IT Cooperation and Partnerships in the Asia-Pacific Region (Shanghai International IT Promotion Center – IITPC) .........................................................................................110 PSN 30: Assistance in Establishing an Industrial Subcontracting and Partnership Exchange in Beijing (SPX) .............................................................................................................................................113 PSN 32: Strengthening the Capacity of the Commercial Network Sites Development Centre (CNSDC) in Designing, Developing and Operating a Nation-Wide Network..................................116 PSN 33: Assistance in Establishing an Industrial Subcontracting and Partnership Exchange in Chongqing, China (SPX) .....................................................................................................................118 ADJUSTED COMPONENT 7: WESTERN REGION 121 PSN 34: Integrated Programme for Shaanxi Province, Component 1: Industrial Development Policies a nd Strategies -Reduce Regional Disparities and Enhance Industry Competitiveness and Evaluation and Adjustment of China's Industrial Policies for Key Industries to Promote Sustainable Development – Phase II..........................................................................................................................121 PSN 35: Shaanxi Business Information Network (Shaanxi BISnet).................................................................124 ADJUSTED COMPONENT 8: SOUTH-SOUTH COOPERATION 127 PSN 39: Technology Transfer for Sustained Economic Growth and South-South Industrial Partnership (ICM) ...........................................................................................................................................................127 Annex 1: Terms of Reference 131 Annex 2: China CSF: Adjusted list of non-MP projects 136 Annex 3: Status of Completion 141 Annex 4: Rating 142 Annex 5A: Schedule of Mission and Persons met 143 Annex 5B: Names of Persons met at UNIDO HQ 148 iv Map of the People’s Republic of China Abbreviations and acronyms used in the report AAITPC Asia-Africa Investment and Technology Promotion Centre Project ABC Agricultural Bank of China ACISC All-China Investor Services Centre ADB Asian Development Bank BISnet Shaanxi Business Information Network BPC Beijing Productivity Center CAPPC China Association of Productivity Promotion Centers CBMA China Building Materials Academy CCSN China Commerce Service Network CDM Clean Development Mechanism (Kyoto Protocol) CEC Chongqing Exhibition Center CFC Chloroflourocarbons (Montreal Protocol) CGE Computable General Equilibrium CHNT Chongqing High-Tech Development Zone CICETE China International Centre for Economic & Technical Exchanges CIDA Canadian International Development Agency CIP Competitive Industrial Performance CNSDC Commercial Network Sites Development Centre COMFAR Computer Model for Feasibility Analysis and Reporting CPR China People’s Republic CSF Country Service Framework CTA Chief Technical Adviser CTEC Chongqing Technology Exhibition Center DDP Department of Development Planning DENA Shenzhen Dena Energy and Environment Technology Institute DPRK Democratic People’s Republic of Korea DRC Development Research Center EC European Commission EEUEP Energy End Use Efficiency Programme EPB Environmental Protection Bureau EST Environmentally Sound Technologies EST Environmentally Sustainable Technologies EU European Union EW Emulsion in Water FDI Foreign Direct Investment FECO Foreign Economic Cooperation Office FS Flowable Seed Dressing FYP Five-Year-Plan GEF Global Environment Facility GHG Green House Gas HQs Headquarters ICM International Centre for Building Materials ICSC Investment Consultancy Services Centre IC -SHP International Center for Small Hydropower ICT Information and Communication Technology IDF Industrial Development Fund IITPC International IT Promotion Center IN-SHP International Network for SHP IP Integrated Programme 2 IPA Investment Promotion Agency IRC International Reference Center IT Information Technology ITC International Technology Centre ITPC UNIDO International Technology Promotion Center for Sustainable Development (Shenzhen) ITPO Investment and Technology Promotion Office ITPS China’s Investment and Technology Promotion System MDGs Millennium Development Goals MEA Multilateral Environmental Agreements MOA Ministry of Agriculture MOFTEC Ministry of Foreign Trade and Economic Cooperation MOST Ministry of Science and Technology MP Montreal Protocol MP/MF Montreal Protocol / Multilateral