Accelerating Investment in Distributed Energy in Rural Qingdao (ADB-48114-001)

  • China
Geographic location where the impacts of the investment may be experienced.
Specific Location
Qingdao, Shandong Province
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 Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
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."
Voting Date
Jul 2, 2015
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Government of People's Republic of China
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Energy
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.35 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)
$ 0.35 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.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 2, 2020

Disclosed by Bank Sep 28, 2016

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

The proposed TA is well aligned with Asian Development Bank's (ADB's) Strategy 2020 strategic development agenda of achieving environmentally sustainable growth. Moving developing member countries onto low-carbon growth paths by improving energy efficiency and expanding the use of clean energy sources has been identified as one of the key means of addressing climate change issues. The PRC: Country Partnership Strategy, 2011 2015 identified environmentally sustainable growth as one of the three pillars of ADB assistance to the PRC. The proposed TA will promote the utilization of low carbon technologies, thus addressing the air pollution.

This TA will aim to help the Qingdao Government to increase readiness for investment in distributed energy project in rural Qingdao. It will (i) select a pilot area in rural Qingdao for deployment of distributed energy, (ii) undertake cost-benefit analysis, (iii) propose cost-effective solution to provide reliable energy for pilot cluster communities, (iv) identify investment needs, (v) review and assess existing policies and standard, identify gaps, and (vi) recommend an appropriate business model to promote distributed energy based heating supply.

The key activities under the TA include the following:
(i) Select a pilot area in rural Qingdao. Locally available renewable resources, energy supply condition, and projected heat load will be assessed, and a pilot area for deployment of distributed energy will be selected in rural Qingdao.

(ii) Undertake cost–benefit analyses and propose a cost-effective solution. Case studies of similar communities in Europe and the PRC that use distributed energy—examining the supporting policy, development plan, available renewable resources, energy demand, adopted technology, financing arrangements, and environmental and social impacts—will be conducted for the pilot area. Suitable, innovative technical solutions will be proposed, with a focus on the most exploitable renewable sources based on local conditions, including wind, solar,biomass, geothermal, waste-to-energy, and wastewater treatment. Cost–benefit analyses will be undertaken and the most cost-effective technical solution for the pilot area in rural Qingdao will be selected.

(iii) Identify investment need. Investment needs in the short, mid-, and long term will be prioritized and possible financing sources identified.

(iv) Assess existing policies and standards. Existing national and local policies and standards for implementing distributed energy projects in rural Qingdao will be assessed, policy gaps identified, and recommendations made for changes.

(v) Recommend an appropriate business model. The most appropriate business model for sustainable implementation of distributed energy in rural Qingdao will be developed. Recommendations for private sector engagement will be made.

(vi) Disseminate technical assistance findings and recommendations. Capacity development training, including an overseas study tour and workshops, will be conducted. Consultation meetings will be held to disseminate TA findings and best practices (international and from other provinces in the PRC).

Implemented distributed energy project in rural Qingdao

The executing agency will be the Qingdao Municipal DRC. The implementing agency will be Qingdao Energy Group. The TA will be implemented over a period of 18 months, from 1 July 2015 to 31 December 2016. The TA will require 3 person-months of inputs from international experts and 24 person-months of inputs from national consultants. To reduce administrative burden and improve economy, efficiency and value for money, all consulting services under the TA would be engaged on output-based (lump-sum) contract.

A firm with a team of international experts and national consultants will be engaged by ADB in accordance with the ADB's Guidelines on the Use of Consultants (2013, as amended from time to time), to conduct the study using ADB's quality- and cost-based selection method (with a technical financial weighting of 90:10), following the submission of a simplified technical proposal.

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

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.

Qingdao Municipal Development & Reform Commission
Foreign Economic Relations & Trade Div
No. 11 Xiang Gang Zhong Road

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at:

How it works

How it works