The World Bank Urban Scale Building Energy Efficiency and Renewable Energy (P130786) REPORT NO.: RES30528 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF URBAN SCALE BUILDING ENERGY EFFICIENCY AND RENEWABLE ENERGY APPROVED ON APRIL 26, 2013 TO PEOPLE'S REPUBLIC OF CHINA ENERGY & EXTRACTIVES EAST ASIA AND PACIFIC Regional Vice President: Victoria Kwakwa Country Director: Bert Hofman Senior Global Practice Director: Riccardo Puliti Practice Manager/Manager: Jie Tang Task Team Leader: Todd M. Johnson The World Bank Urban Scale Building Energy Efficiency and Renewable Energy (P130786) ABBREVIATIONS AND ACRONYMS CSTC Center of Science and Technology for Construction CUSBEE China Urban Scale Building Energy Efficiency and Renewable Energy Project DA Designated Account GEF Global Environment Facility MOF Ministry of Finance MOHURD Ministry of Housing and Urban-Rural Development NDRC National Development and Reform Commission PDO Project Development Objective PMO Project Management Office PV Photovoltaic WBG World Bank Group The World Bank Urban Scale Building Energy Efficiency and Renewable Energy (P130786) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P130786 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 26-Apr-2013 31-Dec-2018 Organizations Borrower Responsible Agency Ministry of Housing and Urban-Rural Development,Beijing Housing and Urban-Rural Development Commission,Beijing Development and PEOPLE'S REPUBLIC OF CHINA Reform Commission,Ningbo Housing and Urban-Rural Development Commission,Center of Science and Technology for Construction (CSTC) Project Development Objective (PDO) Original PDO The proposed project development objective is to improve selected national and city-level policies for (1) the promotion of low-carbon, adaptive and livable urban forms; (2) an increase in energy efficiency in public and commercial buildings; and, (3) the scale-up of commercially viable rooftop solar PV deployment. The global environment objective of the proposed project is to reduce carbon dioxide emissions from buildings in selected Chinese cities by supporting improved policy making and implementation in promoting low-carbon, adaptive and livable urban forms, increasing energy efficiency in public and commercial buildings, and scaling up commercially viable rooftop solar PV deployment. OPS_TABLE_PDO_CURRENTPDO The World Bank Urban Scale Building Energy Efficiency and Renewable Energy (P130786) Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-14522 04-Jul-2013 04-Jul-2013 26-Aug-2013 31-Dec-2018 12.00 6.37 5.63 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The China Urban Scale Building Energy Efficiency and Renewable Energy (CUSBEE) Project was approved on July 4, 2013 with a Global Environment Facility grant of $12 million. The project became effective on August 26, 2013, and the project closing date is December 31, 2018. The latest supervision mission carried out in November 2017 confirmed that the project objective continues to be highly relevant to the priorities of the country and the Bank and progress towards achievement of the PDO is satisfactory. B. Rationale for Restructuring 2. Since early 2017, the Ministry of Finance (MOF) has initiated the process of relocating Designated Account (DA) management from MOF to project execution agencies. Around the same period, national-level project management operation (PMO) units, led by National Development and Reform Commission (NDRC), have begun relocating foreign capital and project management functions to subsidiary institutions. In line with these institutional arrangement changes, the CUSBEE Project submitted a request for Bank’s approval to relocate the DA. Given the delay in disbursements caused by the suspension of the previous DA mechanism, it has been agreed that the Bank will process this restructuring first on an urgent basis, and then begin preparing a second restructuring that would address the update of the results framework and the extension of the grant closing date. 3. There are no outstanding audit reports. Project procurement and safeguard performance are rated satisfactory for compliance with the WBG’s requirements. The World Bank Urban Scale Building Energy Efficiency and Renewable Energy (P130786) II. DESCRIPTION OF PROPOSED CHANGES 4. Change of Institutional Arrangement. The borrower has proposed that the Center of Science and Technology for Construction (CSTC), an affiliated but legally independent entity of the Ministry of Housing and Urban-Rural Development (MOHURD), be delegated to assist MOHURD with the day-to-day project implementation (including finance management, accounting and disbursement), and both entities sign an Implementation Agreement under terms and conditions acceptable to the World Bank. 5. Relocation of Designated Account. The DA of the CUSBEE Project has been proposed to be relocated from the MOF to the CSTC. The CSTC will responsible for managing the DA including finance management, accounting, disbursement, and contracting independent external auditors annually to audit the project accounts. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. III. SUMMARY OF CHANGES Changed Not Changed Change in Disbursements Arrangements ✔ Change in Institutional Arrangements ✔ Change in Implementing Agency ✔ Change in DDO Status ✔ Change in Project's Development Objectives ✔ Change in Results Framework ✔ Change in Components and Cost ✔ Change in Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Financial Management ✔ The World Bank Urban Scale Building Energy Efficiency and Renewable Energy (P130786) Change in Procurement ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ Change in Economic and Financial Analysis ✔ Change in Technical Analysis ✔ Change in Social Analysis ✔ Change in Environmental Analysis ✔ IV. DETAILED CHANGE(S) Note to Task Teams: End of system generated content, document is editable from here.