China: Beijing Air Quality Improvement and Coal Replacement Project (AIIB-000037)

Countries
  • China
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 8, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Beijing Gas Group Company Limited (Beijing Gas)
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 761.10 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Dec 12, 2017

Disclosed by Bank Nov 7, 2017


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Project Description
According to AIIB documents, the "objective of the Project is to improve air quality and reduce air pollutions, such as CO2 emissions, particulate matters, SO2 emissions, and NOx emissions, through replacing coal with natural gas in rural villages in outskirts of Beijing. Upon completion, the Project will provide gas service connections to approximately 216,751 rural households, and reduce coal consumption of around 650,000 tons annually in Beijing." The proposed Project will finance the construction of natural gas distribution networks in around 510 rural villages of Beijing, including the installation of low-pressure village gas pipelines, household connections, and household gas consumption meters. The Project will be implemented over 4 years between July 1, 2017 and June 30, 2021, and the loan closing date will be December 31, 2021.
Investment Description
  • Asian Infrastructure Investment Bank (AIIB)
The Project is estimated to cost $761.10 USD million (or RMB 5,099.37 million equivalent). The AIIB is considering a loan of $250 USD million.
Contact Information
Bank: Hongliang Yang Team Leader/Senior Investment Operations Specialist Department of Investment Operation Asian Infrastructure Investment Bank Email: hyang@aiib.org Borrower: Kang Yan Manager Finance Department Beijing Gas Email: Kangyan@bjgas.com ACCOUNTABILITY MECHANISM OF AIIB In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.