China: China Inner Mongolia Clean Energy Transition Project (AIIB-000685)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • China
Geographic location where the impacts of the investment may be experienced.
Specific Location
Inner Mongolia
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of China
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 314.30 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS Sep 29, 2024

Disclosed by Bank Aug 8, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the AIIB, the project development objective is to promote clean energy transition by replacing coal with hydrogen-blended gas in residential and industrial sectors and promoting the use of hydrogen fuel-cell in the transport sector in Inner Mongolia, China.

Inner Mongolia, an autonomous region of China rich in fossil energy resources, is heavily dependent on fossil fuels, particularly coal. In 2019, coal production and quantity of sale of Inner Mongolia was the highest among all provinces, autonomous regions, and municipalities in China. This resulted in unfavorable economic and environmental issues, such as high green-house gas emissions and polluted air. On September 22, 2020, China officially announced that the country will strive to peak carbon dioxide (CO2) emissions by 2030 and achieve carbon neutrality by 2060. Since then, various plans and initiatives have been made to reduce carbon emissions. Local governments, correspondingly, must take charge of carbon reduction in their administrative areas. There is an urgent need for Inner Mongolia to use more renewable energy resources and transition to a clean development path.

The Project includes four components:

Component A: Construction of five hydrogen-blended gas pipelines.
Component B: Construction of five integrated energy service stations.
Component C: Construction of solar photovoltaic (PV) power generation facility.
Component D: Project Implementation Support and Capacity Building.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

As stated by the AIIB, the Project cost is estimated about USD314.3 million, of which AIIB will provide sovereign-backed loan of USD200 million, and counterpart financing will be USD114.3 million.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by Bloomberg, Inner Mongolia Western Natural Gas Co., Ltd. markets natural gas. The Company also provides natural gas pipeline transportation services.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Inner Mongolia Western Natural Gas Co., Ltd. Contractor Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB Team Leader:

Hongliang Yang - Principal Investment Solutions Specialist
Email: hyang@aiib.org

Client - Government of China:

Jikang Wang - Officer, Department of International Economics and Financial Cooperation, China Ministry of Finance
Email: wangjikang@mof.gov.cn

Implementing Agency - People’s Government of Inner Mongolia Autonomous Region; Inner Mongolia Western Natural Gas Company:

Yanli Wang - Director of Project Management Office, Inner Mongolia Western Natural Gas Company
Email: xbtrq_aiib2023@163.com

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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How it works