The World Bank Implementation Status & Results Report Hebei Air Pollution Prevention and Control Program (P154672) Hebei Air Pollution Prevention and Control Program (P154672) EAST ASIA AND PACIFIC | China | Environment & Natural Resources Global Practice | Requesting Unit: EACCF | Responsible Unit: GENE1 IBRD/IDA | Program-for-Results Financing | FY 2016 | Team Leader(s): Dafei Huang Seq No: 6 | ARCHIVED on 26-Jun-2019 | ISR37488 | Created by: Dafei Huang on 04-Jun-2019 | Modified by: Dafei Huang on 14-Jun-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) To reduce emissions of specific air pollutants in the key sectors in Hebei Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions Hebei Province has now completed most of the program implementation, pending DLI 7 on the development and approval of a cost-effective air quality plan. The program has been extended until December 31, 2019 for the implementation of DLI 7 to complete. The program provided direct support to Hebei's Air Pollution Control and Prevention Action Plan with incentivize to targeted prioritized measures. Hebei has reported significant results since the start of the Action Plan, achieving 40 percent reduction in annual average ambient PM2.5 concentration in 2017 compared to 2013. Specifically, to-date, the program has supported (a) installing continuous emissions monitors (CEMs) in all state- and municipal-controlled industrial facilities and using the CEM system to enforce air pollutant emissions standards; (b) decommissioning more than 4,432 older, highly polluting buses and their replacement with clean energy buses; (c) deployment of over 1.2 million clean stoves in Langfang and Baoding; and (d) increasing nitrogen utilization efficiency (NUE) on more than 5.23 million hectares planted with wheat and corn. All activities are expected to be completed and verified before the project closing date (December 31, 2019). A number of verifications are planned for the second half of the year to capture the results delivered in the result areas. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154672 IBRD-86230 Effective USD 500.00 500.00 0.00 445.19 54.81 89% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154672 IBRD-86230 Effective 06-Jun-2016 12-Jul-2016 11-Oct-2016 31-Dec-2018 31-Dec-2019 6/26/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Hebei Air Pollution Prevention and Control Program (P154672) Program Action Plan Action Description Training is provided to no less than 480 monitoring and enforcement staff at the EPB at all levels. Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Dec-2018 Completed Completion The PMO and BEE provided evidence of the training on 480 members of enforcement staff on air quality monitoring Measurement and enforcement related topic. Comments Action Description Training is provided to no less than 60 work safety supervision staff. Source DLI# Responsibility Timing Timing Value Status Client Due Date 09-Feb-2018 Completed Completion Measurement Comments A GRM is established at the provincial level with staff appointed at the HAP leading group office. The operation Action Description structure and protocols and a complaint hotline, is made available to public. Source DLI# Responsibility Timing Timing Value Status Client Due Date 30-Dec-2016 Completed Completion Measurement Comments Report to the Bank of any credible and material allegations of fraud/and/or corruption regarding the Program; and no Action Description persons or entities debarred or suspended by the Bank are awarded a contract under the Program. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Yearly In Progress Completion Recurrent update Measurement The Bank team was informed by Hebei as of May 8, 2019, no contracts had been awarded to the Bank’s debarred or Comments suspended firms. 6/26/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Hebei Air Pollution Prevention and Control Program (P154672) The CNAO to develop audit TOR and enable required Program financial statement audit report timely issued, Action Description acceptable to the Bank Source DLI# Responsibility Timing Timing Value Status Client Due Date 30-Dec-2016 Completed Completion Measurement Comments Action Description Program’s implementation status should be disclosed publicly on annual basis. Source DLI# Responsibility Timing Timing Value Status Client Recurrent Yearly In Progress Completion Measurement EPB created a “Public Information Disclosure” column on its official website where has published information on the Comments updated '2018-2020, Winning the Blue Skies Battles' Work Plan. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Low Low Low Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Substantial Moderate Moderate Stakeholders Low Low Low Other -- -- -- Overall Substantial Substantial Substantial Results 6/26/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Hebei Air Pollution Prevention and Control Program (P154672) PDO Indicators by Objectives / Outcomes Reduce emissions from specific air pullutants in the key sectors in Hebei IN00712871 ►Reduction of SO2 emissions from enterprises included in the CEM (tons) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 150,000.00 Date 02-Dec-2013 18-Oct-2018 08-May-2019 31-Dec-2019 This will be measured and reported at the closing of the program. Based on the implementation progress of Comments the overall program, the achievement of the result is on track. IN00712872 ►Reduction of NOx emissions from enterprises included in the CEM (tons) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 160,000.00 Date 01-Jan-2014 18-Oct-2018 08-May-2019 31-Dec-2019 This will be measured and reported at the closing of the program. Based on the implementation progress of Comments the overall program, the achievement of the result is on track. IN00712873 ►Reduction of PM2.5 emissions from the 800,000 clean stoves deployed (tons) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,300.00 Date 01-Jan-2014 18-Oct-2018 08-May-2019 31-Dec-2019 This will be measured and reported at the closing of the program. Based on the implementation progress of Comments the overall program, the achievement of the result is on track. IN00712874 ►Reduction of NOx emissions from the transport sector (tons) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40,000.00 Date 01-Jan-2014 18-Oct-2018 08-May-2019 31-Dec-2019 This will be measured and reported at the closing of the program. Based on the implementation progress of Comments the overall program, the achievement of the result is on track. Intermediate Results Indicators by Results Areas Comprehensive control of industrial enterprises and reduced emission of multi-pollutants emissions (SO2, NOx, and primary PM2.5) from key industrial sectors IN00712875 ►Number of EPBs at the provincial and prefecture level implementing Standard Protocols on CEM Systems for emissions of air pollutants (Number, Custom) 6/26/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Hebei Air Pollution Prevention and Control Program (P154672) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 12.00 12.00 Date 06-Jun-2016 06-Sep-2018 06-Sep-2018 29-Jun-2018 Comments IN00712878 ►Percentage of enterprises in State-controlled Lists and Municipal-controlled Lists integrated in the Improved CEM and Enforcement Systems for Air Pollutants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 06-Jun-2016 06-Sep-2018 06-Sep-2018 29-Jun-2018 Comments Area pollution control and dust control IN00712876 ►Number of clean stoves installed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,221,500.00 1,221,500.00 800,000.00 Date 06-Jun-2016 18-Oct-2018 18-Oct-2018 29-Jun-2018 Comments Prevention and control of emissions from mobile sources IN00712877 ►Number of Clean Energy Buses replacing diesel buses, which are disposed of, in accordance with the National Regulations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,437.00 4,432.00 4,500.00 Date 06-Jun-2016 18-Oct-2018 08-May-2019 29-Jun-2018 The dismantling of replaced old buses has not advanced as quickly as expected mainly due to regulations Comments of asset management of bus companies. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Number of EPBs at the provincial and prefecture level implementing Standard Protocols on CEM Systems for emissions of air pollutants (Process, 60,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) 2016- 2018 Value 0.00 12.00 12.00 12.00 6/26/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Hebei Air Pollution Prevention and Control Program (P154672) Date 06-Jun-2016 06-Sep-2018 06-Sep-2018 -- The 3rd-party verified the completion report based on the agreed verification protocol. Comments ►DLI 2 Percentage of enterprises in State-controlled Lists and Municipal-controlled Lists integrated in the Improved CEM and Enforcement Systems for Air Pollutants (Process, 120,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) 2016- 2018 Value 0.00 100.00 100.00 100.00 Date 06-Jun-2016 06-Sep-2018 06-Sep-2018 -- The 3rd-party verified the completion report based on the agreed verification protocol. Comments ►DLI 3 Number of Clean Stoves installed (Output, 80,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) 2016- 2018 Value 0.00 1,221,500.00 1,221,500.00 800,000.00 Date 06-Jun-2016 18-Oct-2018 18-Oct-2018 -- Disbursement of US$ 80,000,000 was made based on the verified results. Comments ►DLI 4 Number of hectares with increased NUE of at least 37% due to the application of formula fertilizer based on soil testing (Intermediate Outcome, 79,980,000.00, 84%) Baseline Actual (Previous) Actual (Current) 2016- 2018 Value 0.00 2,231,500.00 5,234,360.00 6,200,000.00 Date 06-Jun-2016 18-Oct-2018 08-May-2019 -- The Bank has approved disbursement of the 2,231,500 ha of land with application of formula fertilizer based on soil testing, which has been verified by 3rd-party following agreed verification protocol. The PMO has started the second round of verification of the other crops. The verification is expected to be completed in early December, and the PMO estimates a disbursement request will be submitted by mid-December. Comments NUE improvement on 2,231,500 ha of land planted with winter wheat has been verified, and US$ 28.79 million has been disbursed. In addition, soil testing, formulated fertilizer use, and NUE improvement has been verified for 3,002,860 ha of land planted with summer corn. US$38,74 million is being processed for disbursement. The PMO is planning another round of verification of the minor crops. ►DLI 5 Number of Clean Energy Buses replacing diesel buses, which are disposed of, in accordance with the National Regulations (Output, 78,770,000.00, 98%) Baseline Actual (Previous) Actual (Current) 2016- 2018 Value 0.00 2,437.00 4,432.00 4,500.00 Date 06-Jun-2016 18-Oct-2018 08-May-2019 -- 6/26/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Hebei Air Pollution Prevention and Control Program (P154672) Two verifications have been completed on the 4,432 buses disposed with replacement of new energy buses. US$ 77,557,728 disbursement has been made. The PMO is planning for another round of verification on the Comments disposed buses (from Jan 1 2019 onwards). ►DLI 6 Implementation of a Comprehensive Official Emissions Inventory System (Process, 40,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2016- 2018 Value 0.00 0.00 0.00 1.00 Date 06-Jun-2016 08-Nov-2018 08-May-2019 -- Two international experts have provided comments on the completion report submitted by Hebei RAES. The revised report is being translated and expected to be ready for another review. A national expert is being Comments contracted to join the third-party review panel. Verification is expected to be concluded in the third quarter of 2019. ►DLI 7 Approval of a Cost-effective Comprehensive Plan on Air Quality Control for the next 5 years (Process, 40,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2016- 2018 Value 0.00 0.00 0.00 1.00 Date 06-Jun-2016 08-Nov-2018 08-May-2019 -- Hebei Research Academy of Environmental Science and national experts/Beihang University on air quality planning. The core technical team has been engaged to prepare for data, software and hardware, and training on cost effectiveness analysis methodology. Finalization of the analysis and report will be beyond the original schedule. The final approval of the plan by the provincial government is not likely until late 2019. To manage Comments implementation process, the PMO has been requested to urgently finalize contracting of consultants and closely liaise with Bureau of Ecology and Environment in the process. There has been personnel change at the Air Quality Division. The PMO is reminded to enhance coordination so that the new focal point from BEE is engaged in the implementation and dialogue. 6/26/2019 Page 7 of 7