CCCFL II - HENAN GUSHI BIOMASS

The project is an allocation under the China Climate Change Framework Loan II, and consists of the financing of a biomass CHP unit (25 MWe – 45 MWth) in the city of Gushi (Henan province, China). The plant will run on biomass sourced regionally (crop stalks). The electricity will be fed into the national grid and the generated heat will be supplied to a heat/steam network currently under development.

The project will generate heat and electricity from locally sourced, sustainable agricultural biomass residue, replacing inefficient and polluting coal-fired boilers in an urban environment (when the project is completed, existing small and inefficient coal steam boilers will be decommissioned), with a mainly positive environmental and social impact.

The project will have a positive impact on the environment by reducing the need for fossil fuels for energy and heating and thus indirectly reducing pollution (mainly airborne pollution including CO2) in an urban environment. An environmental impact assessment (EIA) has been performed for the project. The Bank will review the EIA process and documentation during appraisal and ensure adherence to its environmental and social standards.

The Bank will require that the implementation of the project will be done in accordance with the Bank's Guide to Procurement. The Bank will monitor the procurement process to ensure compliance with our Guide.