China Climate Change Framework Loan – Emission Reduction project

This project is a proposed loan allocation under the China Climate Change Framework Loan (CCCFL). The project concerns various technical improvements in the coke plant (composed of 5 coke ovens coupled in two units) of an existing steel plant at Shaogang Songshan plant in Guangdong.

The project is composed of 3 different subprojects, linked with the substitution of the wet quenching process by the CDQ process (Coke Dry Quenching), including: (i) and (ii) CDQ process equipment on a 6 m Coke oven and a 4.3 m Coke oven, and (iii) the construction and the operation of various gas tanks (by-products of the process).

The proposed operation would contribute to reducing the coke losses in the process of coke production, improving the coke quality, significantly reducing the environmental impact (atmospheric and liquid emissions, solid residues disposal) of this step of the steel process and improving overall energy efficiency.

The key objective of this allocation is to contribute to climate change mitigation. The schemes proposed under this project if located in the EU would be categorized as Annex I or II-type projects under the Environmental Impact Assessment (EIA) 97/11 amended 2003/35 Directive, which would require a mandatory environmental impact assessment or a review by the competent authority for the need to carry out an EIA. The investment schemes shall be prepared in line with the relevant national and EU environmental standards, including due consideration for protection of sites of nature conservation, as well as the social safeguards of the Bank. EIAs have already been prepared by specialized consultants. These issues will be addressed during the appraisal of the subprojects.

Procurement will be undertaken in accordance with the Bank’s Procurement Guidelines.