The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) EAST ASIA AND PACIFIC | China | Energy & Extractives Global Practice | Requesting Unit: EACCF | Responsible Unit: GEE09 IBRD/IDA | Program-for-Results Financing | FY 2016 | Team Leader(s): Xiaodong Wang Seq No: 7 | ARCHIVED on 06-Jun-2019 | ISR37314 | Created by: Na Han on 24-May-2019 | Modified by: Na Han on 30-May-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) To reduce air pollutant and carbon emissions through increasing energy efficiency and clean energy, with a focus in Beijing-Tianjin-Hebei (Jing- Jin-Ji) and neighboring regions. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Highly Satisfactory Highly Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions Overall, the Program has continued to make impressive progress at the mid-term, with all the disbursement-linked indicators (DLIs) and result indicators met or exceeded the targets. And the program has made important contributions to air pollution control in the Jing-Jin-Ji (JJJ) region, and the government’s Nationally Determined Commitments (NDC) targets of CO2 emission reduction and to mitigate climate change. The program has mainstreamed green financing at HXB, who has become a top leader on green financing in China. The program has achieved significant leveraging, five times of IBRD funds under the PforR program and $17 billion green investments by HXB. HXB has also been exploring innovative business models and financing mechanisms to remove the financing barriers. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154669 IBRD-85920 Effective USD 500.00 500.00 0.00 172.30 331.50 34% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154669 IBRD-85920 Effective 22-Mar-2016 20-May-2016 18-Aug-2016 30-Jun-2022 30-Jun-2022 Program Action Plan 6/6/2019 Page 1 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) The HXB to provide extensive training to its staff at HQ and branches on technical, results M&V, environmental and Action Description social, procurement, and FM areas Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments Action Description The HXB to designate specific staff to be responsible for technical, fiduciary, and environmental and social aspects Source DLI# Responsibility Timing Timing Value Status Client Due Date 29-Nov-2016 Completed Completion Measurement Comments Action Description HXB to engage experts for technical, fiduciary, and environmental and social support as needed Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-May-2018 Completed Completion Measurement Comments Action Description HXB to specify the fiduciary and environmental and social requirements and procedures in the OM Source DLI# Responsibility Timing Timing Value Status Client Due Date 16-Dec-2015 Completed Completion Measurement Comments HXB to specify the fiduciary and environmental and social requirements and procedures in the subloan agreements Action Description with sub-borrowers Source DLI# Responsibility Timing Timing Value Status 6/6/2019 Page 2 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Client Recurrent Continuous In Progress Completion Measurement Comments Action Description HXB to report required actions taken to the Bank in program reports Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly In Progress Completion Measurement Comments Action Description Techncial: HXB to engage independent third-party IVAs for results M&V Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments Technical: The HXB to report portfolio composition and quality to the Bank to ensure transparency and quality of the Action Description portfolio Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly In Progress Completion Measurement Comments Procurement: In line with Article 34 of the Regulation on the Implementation of the Tendering and Bidding Law of the Action Description People’s Republic of China, the sub-project application and the sub-loan agreement with beneficiaries include a mandatory provision Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress 6/6/2019 Page 3 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Completion Measurement Comments Procurement: HXB to set up a complaints handling mechanism and reporting procedures, details of which will be Action Description included in the subproject application package and on the HXB’s website. Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Aug-2016 Completed Completion Measurement Comments Procurement: The HXB and the subloan beneficiaries shall cooperate fully with representatives of the Bank in any Action Description inquiry conducted by the Bank into allegations or other indications of F&C in connection with the program. Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments Procurement: The OM and subloan agreement to include that sub-borrowers will not award contracts to firms and Action Description individuals on temporary suspension or debarment by the Bank and other MDBs. Source DLI# Responsibility Timing Timing Value Status Client Due Date 15-Dec-2016 Completed Completion Measurement Comments Procurement: HXB to strengthen its capacity to assess the capacity of beneficiaries to carry out procurement and Action Description contract management efficiently as part of subproject appraisal and provide guidance to beneficiaries with weak procurement capacity. Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress 6/6/2019 Page 4 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Completion Measurement Comments Action Description Procurement: The HXB will hire expertise as needed to strengthen procurement and contract management. Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-May-2018 Completed Completion Measurement Comments Financial Management: HXB to set up the memorandum records for the program to record each subloan released Action Description and related reference information for ease of tracking the record in the corporate accounting system and the original supporting documents. Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments Financial Management: HXB to conduct reconciliation between the CBD and the accounting division on a quarterly Action Description basis. Source DLI# Responsibility Timing Timing Value Status Client Recurrent Quarterly In Progress Completion Measurement Comments Financial Management: Annually, HXB to prepare the program-specific financial report according to the specifically Action Description tailored format agreed with the Bank for the program and submit report to the Bank Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly In Progress 6/6/2019 Page 5 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Completion Measurement Comments Environmental and Social: HXB to strengthen environment and social impact management within the bank by Action Description specifying the requirements and procedures in the OM. Source DLI# Responsibility Timing Timing Value Status Client Due Date 16-Dec-2015 Completed Completion Measurement Comments Environmental and Social: Enhance capacity of the HXB staff by designating staff, allocating adequate resources, Action Description and specifying operating arrangements and coordination with other departments in the bank. Source DLI# Responsibility Timing Timing Value Status Client Due Date 30-Dec-2016 Completed Completion Measurement Comments Action Description Achievement of DLI4:to establish a Green Finance Center, and disburse $10.75. Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-Jan-2017 Completed Completion Measurement Comments Action Description Achievement of DLI1: to approve sub-projects with no less than $50m, and disburse of $15m by the end of 2016. Source DLI# Responsibility Timing Timing Value Status Client Due Date 30-Dec-2016 Completed Completion Measurement 6/6/2019 Page 6 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Comments Submit all candidate sub-projects involving “ building large-scale efficient facilities to replace small inefficient ones” to Action Description WB for screening. Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments A screening table covering all key social requirements in OM should be developed as part of subproject document Action Description requirement, and be attached to the subproject application package in the review process within the Hua Xia Bank. Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-May-2018 Completed Completion Measurement Comments A social monitoring report should be prepared, based on desk review of compliance of OM by all subprojects before Action Description loan approval, and field visit reporting of all subprojects after the loan approval. Source DLI# Responsibility Timing Timing Value Status Client Due Date 31-May-2018 Completed Completion Measurement Comments Action Description Submit verification report on the results of DLI-1, issued by a third-party, to WB Source DLI# Responsibility Timing Timing Value Status Client Due Date 30-Jun-2017 Completed Completion Measurement Comments 6/6/2019 Page 7 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Action Description Submit an annual report to WB. Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly Completed Completion Measurement Comments The Bank to provide training to the HXB in technical, results M&V, environmental and social, procurement, and FM Action Description areas Source DLI# Responsibility Timing Timing Value Status Bank Due Date 29-Nov-2016 Completed Completion Measurement Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Moderate Moderate Results 6/6/2019 Page 8 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) PDO Indicators by Objectives / Outcomes Reduction in particulate emissions from eligible EE and RE subprojects (thousand tons) IN00708445 ►PDO Indicator 1: Reduction in particulate emmisions from eligible EE and RE subprojects (thousand tons) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.60 3.20 3.60 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Reduction in SO2 emmissions from eligible EE, RE, and desulfurization subprojects (thousand tons) IN00708456 ►PDO 2 Reduction in SO2 emmissions from eligible EE, RE, and desulfurization subprojects (thousand tons) (Metric tons/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.40 12.40 16.90 Date 01-Jul-2016 31-Oct-2018 06-May-2019 30-Jun-2022 Comments Reduction of NOX emission from EE, RE and Denitrification subprojects (thousand tons) IN00708457 ►PDO Indicator 3: Reduction in NOx emmissions from eligible EE, RE, and desulfurization subprojects (thousand tons) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.40 14.10 12.70 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Reduction in CO2 emissions from eligible EE and RE subprojects (thousand tons) IN00708458 ►PDO Indicator 4: Reduction in CO2 emissions from eligible EE and RE subprojects (thousand tons) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,810.00 2,180.00 2,461.00 Date 01-Jan-2016 31-Oct-2018 06-May-2019 30-Jun-2021 Comments Intermediate Results Indicators by Results Areas 6/6/2019 Page 9 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Intermediate Result Indicator 1: Total investments in eligible EE, RE and pollution abatement subprojects IN00708459 ►Intermeidate Result Indicator 1: Total investments in eligible EE, RE and pollution abatement subprojects (million USD) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 900.00 1,000.00 1,400.00 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Intermediate Result Indicator 2: Subloans (for eligilbe EE, RE, and pollution abatement subprojects) disbursed to sub- borrowers IN00708460 ►Intermediate Result Indicator 2: Subloans(for eligible EE, RE, and pollution abatement subprojects) disbursed to sub- borrowers (million USD) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 427.00 498.00 1,000.00 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Intermediate Result Indicator 3: Coal reduction from eligible EE and RE subprojects IN00708461 ►Intermediate Result Indicator 3: Coal reduction from eligible EE and RE subprojects (thousand tce) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 719.40 893.00 1,000.00 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Intermediate Result Indicator 4: Reduction of SO2 emissions from desulfurization subprojects IN00708462 ►Intermediate Result Indicator 4: Reduction of SO2 emissions from desulffurization subprojects (thousand tons) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.02 7.02 10.80 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Intermediate Result Indicator 5: Reduction of NOx emissions from denitrification subprojects IN00708463 6/6/2019 Page 10 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) ►Intermediate Result Indicator 5: Reduction of NOx emissions from denitrification subprojects (thousand tons) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.47 9.50 7.40 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Intermediate Result Indicator 6: Establishment of a Green Finance Center at the HXB and adoption of internal procedures for the identification, risk assessment, appraisal, and approval of green lendin IN00708464 ►Intermediate Result Indicator 6: Establishment of a Green Finance Center at the HXB and adoption of internal procedures for the identification, risk assessment, appraisal, and approval of green lednin (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 Date 01-Jan-2016 26-Dec-2016 06-May-2019 31-Dec-2021 Comments Intermediate Results Indicator 7: Number of different eligible innovative financial products for green financing deployed IN00708465 ►Intermediate Result Indicator 7: Number of different eligible innovative financial products for green financing deployed (number of products) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Intermediate Result Indicator 8: Number of different ESCOs receiving subloans (for eligible EE and RE subprojects) IN00708466 ►Intermediate Result Indicator 8: Number of different ESCOs receiving subloans (for eligible EE and RE subprojects) (number of ESCOs) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 6.00 10.00 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Intermediate Result Indicator 9: Number of subprojects financed by syndicated loans IN00708467 ►Intermediate Result Indicator 9: Number of subprojects financed by syndicated loans ( number of projects) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/6/2019 Page 11 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Value 0.00 1.00 1.00 2.00 Date 01-Jan-2016 31-Oct-2018 06-May-2019 31-Dec-2021 Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 DLI-1: Subloans (for eligible EE, RE, and pollution abatement subprojects) disbursed to sub-borrowers (million USD) (Intermediate Outcome, 540.00, 0%) Baseline Actual (Previous) Actual (Current) CY2021 Value 0.00 427.00 436.00 1,000.00 Date 01-Jan-2016 31-Oct-2018 30-Apr-2019 -- Comments ►DLI 2 DLI-2: Coal reduction from eligible EE and RE subprojects (thousand tons of coal equivalent) (Intermediate Outcome, 195.00, 0%) Baseline Actual (Previous) Actual (Current) CY2021 Value 0.00 740.00 740.00 550.00 Date 01-Jan-2016 31-Oct-2018 31-Oct-2018 -- Comments ►DLI 3 DLI-3a: Reduction of SO2 emissions from desulfurization subprojects (thousand tons) (Intermediate Outcome, 16.90, 0%) Baseline Actual (Previous) Actual (Current) CY2021 Value 0.00 7.00 7.00 8.60 Date 01-Jan-2016 31-Oct-2018 31-Oct-2018 -- Comments ►DLI 4 DLI-3b: Reduction of NOx emissions from denitrification subprojects (thousand tons) (Intermediate Outcome, 25.30, 0%) Baseline Actual (Previous) Actual (Current) CY2021 Value 0.00 9.50 9.50 5.90 Date 01-Jan-2016 31-Oct-2018 31-Oct-2018 -- 6/6/2019 Page 12 of 13 The World Bank Implementation Status & Results Report Innovative Financing for Air Pollution Control in Jing-Jin-Ji (P154669) Comments ►DLI 5 DLI-4: Establishment of a Green Finance Center and adoption of internal procedures for the identification, risk assessment, appraisal, and approval of green lending (Intermediate Outcome, 21.50, 0%) Baseline Actual (Previous) Actual (Current) CY2021 Value 0.00 1.00 1.00 1.00 Date 01-Jan-2016 26-Dec-2016 26-Dec-2016 -- Comments ►DLI 6 DLI-5: Number of different eligible innovative financial products for green financing deployed (# of products) (Intermediate Outcome, 36.00, 0%) Baseline Actual (Previous) Actual (Current) CY2021 Value 0.00 2.00 2.00 3.00 Date 01-Jan-2016 31-Oct-2018 31-Oct-2018 -- Comments ►DLI 7 DLI-6: Number of different ESCOs receiving subloans (for eligible EE, RE, and pollution abatement subprojects) (# of ESCOs) (Intermediate Outcome, 36.00, 0%) Baseline Actual (Previous) Actual (Current) CY2021 Value 0.00 5.00 5.00 10.00 Date 01-Jan-2016 31-Oct-2018 31-Oct-2018 -- Comments 6/6/2019 Page 13 of 13