The World Bank Report No: ISR14758 Implementation Status & Results China China Energy Efficiency Financing II (P113766) Public Disclosure Copy Operation Name: China Energy Efficiency Financing II (P113766) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 04-Jun-2014 Country: China Approval FY: 2010 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): China Minsheng Banking Corp. Ltd. Key Dates Board Approval Date 22-Jun-2010 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date 28-Oct-2013 Last Archived ISR Date 24-Dec-2013 Effectiveness Date 02-Nov-2010 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 04-Nov-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to improve the energy efficiency of selected enterprises, and thereby reduce their adverse environmental impacts through scaling-up commercial lending for energy efficiency investments. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Energy Efficiency Investment Sub-projects 100.00 Technical assistance and capacity building 0.80 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Unsatisfactory Unsatisfactory Public Disclosure Copy Overall Implementation Progress (IP) Unsatisfactory Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The CHEEF II project has made little progress and did not meet most of milestones agreed since last mission. To date, Minsheng Bank has only utilized $16.5 million IBRD loan to implement one energy efficiency subproject. Moreover, with the objective of scaling up green financing, the CHEEF II project requires $500 million parallel financing on energy efficiency and/or renewable energy subprojects. However, Minsheng Bank has not been able to report any such parallel financing with supporting subproject information. The allocated $0.8 million GEF grant which is designed to support project implementation has been barely used either with only $0.03 million disbursement. Therefore, both the overall implementation progress and the progress towards achievement of PDO remain Unsatisfactory. Page 1 of 4 The World Bank Report No: ISR14758 Locations Country First Administrative Division Location Planned Actual China Beijing Shi Beijing ✔ ✔ Public Disclosure Copy Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Projected lifetime energy savings Megawatt hour Value 0.00 7651600.00 402116000.00 (MWh) Date 21-May-2010 31-Mar-2014 31-Dec-2014 Comments The indicator is calculated The indicator is calculated from the indicator "Associated from the indicator "Associated annual energy savings from annual energy savings from the EE investments (mtce)". the EE investments (mtce)". The conversion factor used is The conversion factor used is 1 tce=8.14MWh and the 1 tce=8.14MWh and the lifetime is assumed to be 20 lifetime is assumed to be 20 years. years. Amount of accumulated EE investments and Amount(USD) Value 0.00 23.80 1000.00 renewable commercial lending supported and Date 21-May-2010 31-Mar-2014 31-Dec-2014 leveraged by the project Comments The actual data reflects the The unit is in million USD. It first subproject approved and includes $100 million IBRD under implementation. loan, $500 million parallel Parallel financing data is not financing, and $400 million included because the equity from subproject reported data is not consistent beneficiary enterprises. and lacks of detailed information. Associated annual energy savings from the EE Number Value 0.00 0.05 2.47 investments Date 21-May-2010 31-Mar-2014 31-Dec-2014 Public Disclosure Copy Comments The actual data reflects the The unit is in million tons of first subproject approved and coal equivalent under implementation. Parallel financing data is not included because the reported data is not consistent and lacks of detailed information. Reduction in GHGs from the EE investments Number Value 0.00 0.12 6.10 Page 2 of 4 The World Bank Report No: ISR14758 Date 21-May-2010 31-Mar-2014 31-Dec-2014 Comments The actual data reflects the first subproject approved and Public Disclosure Copy under implementation. Parallel financing data is not included because the reported data is not consistent and lacks of detailed information. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Cumulative amount of EE lending Amount(USD) Value 0.00 16.50 100.00 Date 21-May-2010 31-Mar-2014 31-Dec-2013 Comments The actual data reflects the The unit is in $million first subproject approved and under implementation. Number of training courses conducted on the Number Value 0.00 2.00 8.00 operation manual Date 21-May-2010 31-Mar-2014 31-Dec-2012 Comments Environmental and social risk assessment and Text Value NA Not conducted yet Completed control system strengthening plan completed Date 21-May-2010 31-Mar-2014 31-Dec-2012 and recommended to Minsheng management Comments Study of business opportunities for Minsheng in Text Value NA Not conducted yet Completed carbon financing and trading is completed Date 21-May-2010 31-Mar-2014 31-Dec-2012 Comments Data on Financial Performance (as of 27-Dec-2013) Public Disclosure Copy Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P113766 IBRD-79350 Effective 22-Jun-2010 11-Aug-2010 02-Nov-2010 31-Dec-2014 31-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P113766 IBRD-79350 Effective USD 100.00 100.00 0.00 40.25 59.75 40.00 Disbursement Graph Page 3 of 4 The World Bank Report No: ISR14758 Public Disclosure Copy Key Decisions Regarding Implementation A supervision mission was conducted in March 2014. The rating for the overall implementation progress has been continually rated as Unsatisfactory due to slow implementation progress particularly lack of progress on management and reporting parallel financing as well as technical assistance and capacity building activities supported by the GEF grant. It is unlikely that the implementing agency Minsheng Bank will be able to achieve the project development objective by the project scheduled closing date of December 31, 2014. Restructuring options are currently being discussed to solve the outstanding issues. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 4 of 4