Bank Xingtai Green Tender

Project Status ActiveAdb proposes a financial intermediation loan in an amount of 200 million to bank of xingtai a reginal bank in hebei province to pilot a successful green finance bank model. The proposed project will provide critically needed long-term debt at concessional rate to compensate for the subproject negative externalities and incentivize the regional banks green finance lending. An attached transaction technical assistance trta will help bank of xingtai strengthen its institutional capacities. The proposed project intends to have a long-term transformative impact on other regional banks by establishing a demonstrative bank model sharing relevant knowledge and experiences enhancing the awareness and reshaping the mindsets of both lenders and borrowers. In summary the overall assistance package loan and trta should greatly facilitate the improvement of bths environmental condition a regional public goods. Beijing tianjin and hebei province bth are one of the three economic clusters in the peoples republic of china prc centered in the capital of beijing. Bth underwent a rapid economic expansion over the past two decades largely built upon heavy industries such as steel and petrochemical productions and manufacturing. The energy sources were primarily coal. In 2013 average annual mean particulate matter 2. 5 micrometers or less pm2. 5 in bth peaked to 106 gm3 who standard is below 10 gm3 and average annual mean particulate matter 10 micrometers or less pm10 peaked at 181 gm3 who standard is below 20 gm3. This has caused unprecedented health risks more so on the poor and made the region less livable. In the same year 2013 the prc government issued the implementation guidelines on prevention of air pollution in the bth and surrounding areas and began to request related assistance from asian development bank adb. Adb supports the bth program with a 3. 1 billion financing package from 2015-2021. The first loan 300 million approved in 2015 strengthened policy reforms and regulatory capacities in hebei province. The second loan 500 million approved in 2016 facilitated access to finance for small and medium-sized enterprises to scale up environmentally friendly investments. The third loan 499 million approved in 2017 deploys advanced technologies to reduce air pollution from large emitters in the agriculture energy transport and urban sectors. The fourth project 400 million approved in 2018 helps shandong province an adjacent province to hebei province shift to cleaner and more energy efficient heating and cooling systems. The fifth project 300 million to be approved in 2019 will help henan province another adjacent province to hebei convert its primary energy source from coal to natural gas. The proposed project 200 million