Huaneng Tiancheng Distributed Wind Energy Climate Finance Project (ADB-56188-001)

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.
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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
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
Oct 30, 2023
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.
Borrower
Huaneng Tiancheng Financial Leasing Co., Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
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)
$ 75.00 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)
$ 75.00 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)
$ 150.00 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.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Oct 3, 2024

Disclosed by Bank Oct 30, 2023

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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 ADB, the project consists of longer-tenor funding to HTFL for lease financing of distributed wind energy (DWE) subprojects in the PRC, which will promote wind energy financing and sector development, reduce greenhouse gas (GHG) emissions, and accelerate the PRC’s clean energy transition.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorized the project risks as follows:

Environment - FI
Involuntary Resettlement - FI-C
Indigenous Peoples - FI-C

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
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, Huaneng Tiancheng Financial Leasing Co.,Ltd. offers leasing services. The Company provides financial leasing, leasing property purchase, leasing property processing, leasing transaction consultation, and other services. Huaneng Tiancheng Financial Leasing provides its services throughout China.

China Huaneng Group Co., Ltd. generates and distributes power products. The Company produces coal fired power, hydropower, wind power, solar power, and other other products. China Huaneng Group also operates investment management, transportation, and other businesses.

According to the ADB, HTFL was established in 2014 as a controlled subsidiary of China Huaneng Group Co., Ltd. (CHNG), one of the leading state-owned power producers in the PRC. As of 2021, CHNG’s consolidated installed power capacity reached 205.9 GW, accounting for about 9% of national installed capacity. Renewable energy increased from 23% of CHNG’s total capacity in 2015 to 32% in 2021. CHNG aims to achieve 56% of clean energy in its total generation capacity by 2025.
HTFL is CHNG’s sole leasing platform, offering financial leasing and advisory services across the PRC.

HTFL has six direct shareholders, all subsidiaries of CHNG: Huaneng Capital Services Co., Ltd. (39.00%); China Hua Neng Group Hong Kong Limited (21.00%); Huaneng Power International Inc. (20.00%); Huaneng Lancang River Upstream Hydropower Inc. (10.00%); Huaneng Renewable Corporation Limited (5.56%); and Huaneng Renewables (Hong Kong) Limited (4.44%). Huaneng Capital Services is CHNG’s platform for financial services, comprising mainly trust, financial leasing, and securities businesses. The main businesses of the other five shareholders involve the investment, development, construction, operation, and management of power plants and other energy-related projects. Most of HTFL’s shareholders are majority-owned by CHNG. The exception is Huaneng Power International Inc., which is listed in Shanghai; Hong Kong, China; and New York with CNHG being the largest shareholder at 34.12%. Overall, CHNG holds a 66.55% indirect equity stake in HTFL.


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.

ADB Team Leader:

Biao Huang - Principal Investment Specialist

No contacts provided at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

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: http://www.adb.org/site/accountability-mechanism/main.

How it works

How it works