China: Beijing-Tianjin-Hebei Low Carbon Energy Transition and Air Quality Improvement Project (AIIB-000323)

Countries
  • China
Where the impacts of the investment may be experienced.
Specific Location
Beijing-Tianjin-Hebei
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Proposed
Bank Risk Rating
A
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
Oct 1, 2019
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
People’s Republic of China
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)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 500.00 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)
$ 1,905.20 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 Nov 20, 2019

Disclosed by Bank Aug 1, 2019


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Project Description

According to the bank document, the proposed Project is to construct a liquefied natural gas (LNG) terminal in Binhai District, Tianjin Municipality, which includes two components:

(i) construction of LNG receiving, storage and regasification facilities with an annual handling capacity of 5 million tons of LNG; and

(ii) construction of unloading wharf. AIIB financing is planned to be used in the construction of LNG receiving, storage and regasification facilities under the first component.

The objective of the proposed Project is to support China’s transition to a low-carbon energy supply structure and accelerate air quality improvement in the region of Beijing, Tianjin and Hebei (the BTH region) by increasing the availability of natural gas to help replace and reduce coal consumption.

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)

AIIB loan US$ 500.0 million

Beijing Municipal Government US$ 571.6 million

Implementing Entity US$ 833.6 million

Private Actors
Contact Information

1/ AIIB Contact:

Name: Mr. Hongliang Yang 

Title: Senior Investment Operations Specialist of AIIB

Email: hyang@aiib.org

2/ Borrower Contact:

Name: Ms. Su Han 

Title: Senior Advisor Department of International Economic and Financial Cooperation.

Ministry of Finance

Email: hansu@mof.gov.cn

3/ Implementing Entity

Name: Ms. Yan Kang

Title: Chief Finance Officer. 

Beijing Gas Group Company Ltd

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.

For information on how to make submissions to the PPM, please visit the PPM web page: https://www.aiib.org/en/policies-strategies/operational-policies/policy-on-the-project-affected-mechanism.html