World Bank Documentdocuments.worldbank.org/curated/en/... · Plan (FYP, 2011-2015) period to cut...
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Document of The World Bank FOR OFFICIAL USE ONLY Report No: 74651-CN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED GLOBAL ENVIRONMENT FACILITY GRANT IN THE AMOUNT OF US$12 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR AN URBAN-SCALE BUILDING ENERGY EFFICIENCY AND RENEWABLE ENERGY PROJECT March 28, 2013 China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript of World Bank Documentdocuments.worldbank.org/curated/en/... · Plan (FYP, 2011-2015) period to cut...
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 74651-CN
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GLOBAL ENVIRONMENT FACILITY GRANT
IN THE AMOUNT OF US$12 MILLION
TO THE
PEOPLE'S REPUBLIC OF CHINA
FOR AN
URBAN-SCALE BUILDING ENERGY EFFICIENCY AND RENEWABLE ENERGYPROJECT
March 28, 2013
China and Mongolia Sustainable Development UnitSustainable Development DepartmentEast Asia and Pacific Region
This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed without WorldBank authorization.
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CURRENCY EQUIVALENTS
(Exchange Rate Effective December 31, 2012)Currency Unit = Chinese Yuan (CNY)
CNY 6.23 = US$1.00
FISCAL YEARJanuary 1 - December 31
ABBREVIATIONS AND ACRONYMS
BDRC Beijing Development and Reform LOCAL Low-Carbon, Adaptive and LivableCommission
EPB&D Energy Performance Benchmarking LEED Leadership in Energy andand Disclosure Environmental Design
BHURDC Beijing Housing and Urban-Rural MOF Ministry of FinanceDevelopment Commission
BMG Beijing Municipal Government MOHURD nr DevelHousing and Urban-
BUPC Beijing Urban Planning NAC National Advisory CommitteeCommission
CPS Country Partnership Strategy NCB National Competitive Bid
DAC Damuwan Administrative NDRC National Development and ReformCommittee Commission
EA Environmental Assessment NHURDC Ningbo HousinComitrban-Rural
ECOP Environmental Code of Practice NMG Ningbo Municipal Government
EE Energy Efficiency, Energy Efficient NPSG Ningbo Project Steering Group
EHS Environment, Health and Safety NPB Ningbo Planning BureauEIA Environmental Impact Assessment OP Operational Policy
EMP Environmental Management Plan PDO Project Development ObjectiveESCO Energy Service Company PIU Project Implementing Unit
FYP Five-Year Plan PMO Project Management Office
GDP Gross Domestic Product PP Procurement Plan
GEF Global Environment Facility PV Photovoltaic
GHG Greenhouse Gas QCBS Quality and cost based selection
GOC Government of China RE Renewable Energy
IBRD International Bank of RESCO Renewable Energy ServiceReconstruction and Development Company
ICB International competitive bid
Regional Vice President: Axel van Trotsenburg, EAPVPCountry Director: Klaus Rohland, EACCF
Sector Director: John A. Roome, EASSDSector Managers: Mark R. Lundell, EASCS
Charles Feinstein, EASWETask Team Leader: Feng Liu, SEGES
CHINAUrban-Scale Building Energy Efficiency and Renewable Energy Project
TABLE OF CONTENTS
Page
I. STRATEGIC CONTEXT ................................................................................................. 1
A. Country Context ......................................................... 1
B. Sectoral and Institutional Context. .................................... 2
C. Higher Level Objectives to which the Project Contributes ................... 4
II. PROJECT DEVELOPMENT OBJECTIVES ........................................................... 4
A. PDO........................................................ 4
Project Beneficiaries ..................................... ........ 4
PDO Level Results Indicators......................5.... ............ 5
III. PROJECT DESCRIPTION ......................................................................................... 5
A. Project Components ..................................... ........ 5
B. Project Financing .......................................... ..... 8
Project Cost and Financing ............................... ......... 8
C. Lessons Learned and Reflected in the Project Design. ......... ............. 8
IV . IM PLEM ENTATION ..................................................................................................... 10
A. Institutional and Implementation Arrangements .................... ..... 10
B. Results Monitoring and Evaluation ................ 1..................1
C. Sustainability......... ........ ............................... 11
V. KEY RISKS AND MITIGATION MEASURES......................................................12
A. Risk Ratings Summary Table ...................................... 12
B. Overall Risk Rating Explanation .............................. ...... 12
VI. APPRAISAL SUMMARY ......................................................................................... 13
A. Economic and Financial Analyses .......................... ......... 13
B. Technical .................................................... 13
C. Financial Management..................... ................. 14
D. Procurement ......................................... ......... 14
E. Social (including Safeguards) ...................................... 14
F. Environment (including Safeguards) .................................. 15
Annex 1: Results Framework and Monitoring .................................................................... 16
Annex 2: Detailed Project Description..................................................................................19
Annex 3: Implementation Arrangements ............................................................................. 26
Annex 4: Operational Risk Assessment Framework (ORAF).............................................37
Annex 5: Implementation Support Plan ................................................................................ 41
Annex 6: Incremental Cost Analysis ....................................................................................... 43
Annex 7: Promoting Low-Carbon, Adaptive and LivableUrban Forms in Chinese Cities..............................................................................48
PAD DATA SHEET
China
Urban Scale Building Energy Efficiency and Renewable Energy (P130786)
PROJECT APPRAISAL DOCUMENT
EAST ASIA AND PACIFIC
EASCS
Basic Information
Project ID Lending Instrument EA Category Team Leader
P130786 Specific Investment B - Partial Assessment Feng LiuLoan
Project Implementation Start Date Project Implementation End Date
30-April-2013 30-Jun-2018
Expected Effectiveness Date Expected Closing Date
31-Jul-2013 31-Dec-2018
Joint IFC: No
Sector Manager Sector Director Country Director Regional Vice President
Mark R. Lundell John A. Roome Klaus Rohland Axel van Trotsenburg
Borrower: Ministry of Finance
Responsible Agency: Ministry of Housing and Urban-Rural Development
Contact: Ms. Tong Guichan Title: PMO Director
Telephone No.: Email: [email protected]
Responsible Agency: Beijing Housing and Urban-Rural Development Commission
Contact: Mr. Zhao Fengdong Title: PMO Executive Director
Telephone No.: Email: [email protected]
Responsible Agency: Beijing Development and Reform Commission
Contact: Mr. Shao Zhiqing Title: PMO Director
Telephone No.: Email: [email protected]
Responsible Agency: Ningbo Housing and Urban-Rural Development Committee
Contact: Ms. Xu Yufen Title: PMO Executive Director
Telephone No.: Email: [email protected]
Project Financing Data(US$M)
] Loan [X] Grant [ ] Other
] Credit [ ] Guarantee
For Loans/Credits/Others
Total Project Cost (US$M): 30.59
Total Bank Financing 12.00(US$M):
Financing Source Amount(US$M)
BORROWER/RECIPIENT 18.59
Global Environment Facility (GEF) 12.00
Total 30.59
Expected Disbursements (in USD Million)
Fiscal Year 2013 2014 2015 2016 2017 2018 2019
Annual 0.00 0.50 1.50 3.00 3.50 3.00 0.50
Cumulative 0.00 0.50 2.00 5.00 8.50 11.50 12.00
Global Environmental Objective(s)
The proposed project development objective is to improve selected national and city-level policies for(1) the promotion of low-carbon, adaptive and livable urban forms; (2) an increase in energy efficiencyin public and commercial buildings; and (3) the scale-up of commercially viable rooftop solar PVdeployment.
The global environment objective of the proposed project is to reduce carbon dioxide emissions frombuildings in selected Chinese cities by supporting improved policy making and implementation inpromoting low-carbon, adaptive and livable urban forms, increasing energy efficiency in public andcommercial buildings, and scaling up commercially viable rooftop solar PV deployment.
Components
Component Name Cost (USD Millions)
1. Promoting the Development of Low-Carbon, Adaptive and Livable 8.76Urban Forms
2.Improving Energy Efficiency in Public and Commercial Buildings 18.53
3. Scaling up Commercially Viable Rooftop Solar PV Deployment 2.00
4. Project Management 1.30
Compliance
Policy
Does the project depart from the CAS in content or in other significant Yes [ ] No [X]
respects?
Does the project require any waivers of Bank policies? Yes [ ] No [X]
Have these been approved by Bank management? Yes [ ] No [X]
Is approval for any policy waiver sought from the Board? Yes [ ] No [X]
Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ]
Safeguard Policies Triggered by the Project Yes No
Environmental Assessment OP/BP 4.01 X
Natural Habitats OP/BP 4.04 X
Forests OP/BP 4.36 X
Pest Management OP 4.09 X
Physical Cultural Resources OP/BP 4.11 X
Indigenous Peoples OP/BP 4.10 X
Involuntary Resettlement OP/BP 4.12 X
Safety of Dams OP/BP 4.37 X
Projects on International Waterways OP/BP 7.50 X
Projects in Disputed Areas OP/BP 7.60 X
Legal Covenants
Name Recurrent Due Date Frequency
On-granting arrangements No Prior to One time
implementation of
Beijing's and
Ningbo's
respective parts of
the Project
Description of Covenant
On-granting of part of the grant proceeds by the national government to Beijing and Ningbo
Municipalities
Name Recurrent Due Date Frequency
Green Building Subproject Grant No Prior to One time
Agreement/s implementation of
Green Building
Subprojects
Description of Covenant
Conclusion of agreement between Ningbo Municipality and Ningbo University for implementation of
Component 2 (c) (ii) of the Project
Conditions
Name Type
Description of Condition
Team Composition
Bank Staff
Name Title Specialization Unit
Feng Liu Senior Energy Specialist Team Lead SEGES
Gailius J. Draugelis Lead Energy Specialist Operations Advisor EASCS
Xiaowei Guo Senior Procurement Procurement EASR2
Specialist
Fang Zhang Financial Management Financial Management EASFM
Specialist
Sameena Dost Senior Counsel Legal LEGES
Emmanuel Py Infrastructure Specialist Energy EASWE
Monali Ranade Senior Environmental Building Energy WBICC
Specialist Efficiency
Kun Cao Team Assistant Team Assistant EACCF
Dan Xie Team Assistant Team Assistant EACCF
Non-Bank Staff
Name Title Office Phone City
Youxuan Zhu Social Safeguards Beijing
Consultant
Peishen Wang Environment Consultant Winnipeg
Hong Miao Consultant, Institutional Beijing
Issues
Serge Salat Consultant, Urban Paris
Planning, Architecture
Locations
Country First Administrative Location Planned Actual Comments
Division
China Ministry of Housing Beijing X
and Urban-Rural
Development
Institutional Data
Sector Board
Energy and Mining
Sectors / Climate Change
Sector (Maximum 5 and total % must equal 100)
Major Sector Sector % Adaptation Mitigation
Co-benefits % Co-benefits %
Energy and mining General energy sector 80
Energy and mining Other Renewable Energy 20
Total 100
Z I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information
applicable to this project.
Themes
Theme (Maximum 5 and total % must equal 100)
Major theme Theme %
Environment and natural resources Climate change 65management
Urban development Urban planning and housing policy 35
Total 100
I. STRATEGIC CONTEXT
A. Country Context
1. China's rapid economic growth in the last three decades has been manifested by the riseof cities, and the tide of urbanization will continue to swell in the next two decades. Between1990 and 2010, urban population and urban built-up area more than doubled and urban buildingstock more than tripled. The share of official urban population crossed the 50 percent milestonein 2011 and is projected to reach almost 70 percent in 2030. By then Chinese cities will haveabout 1 billion people, compared to 670 million in 2010.
2. The transformation of Chinese cities in the last 15 years has taken a decisive turn to car-based urban expansion characterized by segregated residential communities and commercialareas linked by major roads. These new urban areas, while providing citizens with modernamenities and expanded living space, have generally lost the livability of the old quarters ofChinese cities where residents can access all essential amenities and services by walking orbiking. This new urban form not only constraints options to optimize energy use at building andneighborhood levels but also locks cities into a high-carbon lifestyle dependent primarily on carsand motorized transportation. A recent study of Jinan City indicates that households living innewer gated residential areas consume 70 percent more operational energy and 2 times moretransportation energy than those living in older mixed-use areas. Many Chinese cities arealready on a carbon-intensive growth path. Bending the trajectory of carbon intensity whilemodernizing will challenge Chinese cities to break away from their current growth model.
3. Climate change calls for a new transformation of China's cities to develop urban formsthat foster low-carbon lifestyle, scale-up energy efficiency (EE) in buildings and increaserenewable energy (RE) deployment. In the next two decades China's cities need to assimilateabout 300 million new citizens. Investments in urban infrastructure will be enormous. If thehistorical trend continues, the urban building stock will increase by about 65 percent, or about 13
2billion m , with multiplier effects on other urban infrastructure needs. The NationalDevelopment and Reform Commission (NDRC) launched its Low-Carbon Pilot Cities andProvinces Program in 2010, focusing on broad economic policies and in particular industrialdevelopment strategies. The Ministry of Housing and Urban-Rural Development (MOHURD)has been promoting low-carbon and eco cities since 2007, focusing on urban planning, urbaninfrastructure and urban built environment, with demonstration projects in over a dozen cities.Over 200 Chinese cities have included low-carbon growth in their development objective.
4. The Government of China (GOC) has pledged to reduce the economy's carbon intensityby 40-45 percent by 2020, compared with 2005. Binding targets were set in the 12th Five-Year-Plan (FYP, 2011-2015) period to cut GDP energy intensity by 16 percent and GDP carbonintensity by 17 percent. Targets were also set for increasing the share of non-fossil energy inprimary energy use from 8 percent in 2010 to 11.4 percent by 2015 and to 15 percent by 2020.The GOC plans to increase the installation of rooftop solar PV systems from under 1 GW in2010 to 3 GW by 2015. Cities account for about 80 percent of the GDP and 75 percent of theenergy consumption in China. They are key to meeting GOC's energy intensity and carbonemission reduction targets.
5. Beijing Municipality has been a strong supporter of sustainable urbanization but hasencountered challenges which are common to other large Chinese cities. Beijing achieved a
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26.5 percent reduction in GDP energy intensity during the 11th FYP period, compared with thenational target of 20 percent, in large part due to the significant shift of its economic structurefrom manufacture to services. For the 12th FYP, Beijing has committed to reduce its GDP energyintensity and carbon intensity by 17 and 18 percent, respectively. These new reductions translateto challenges in deepening energy conservation in buildings, improving EE in transportation andother urban infrastructure, increasing RE deployment. Successfully addressing urban energyissues in Beijing will help replication in other major cities in China.
6. Ningbo Municipality of Zhejiang Province is among the most innovative Chinese citiesin economic and environmental management. It is among the first national pilot cities forbuilding and renewable energy integration. For the 12th FYP, Ningbo has committed to reduceits GDP energy intensity and carbon intensity by 18 and 19 percent, respectively. Ningbomunicipal government has pledged support for scaling up green buildings and piloting innovativeurban spatial planning and designs to achieve the low-carbon urbanization objective. Theseactivities could provide important experience and lessons for other Chinese cities of similarclimate or size.
B. Sectoral and Institutional Context
7. The expansion and renewal of China's cities should create urban forms which supportlow-carbon growth, be adaptive to the changing urban economic landscape, and livable for allcitizens. There is much global evidence, including China's own, that such low-carbon, adaptiveand livable (LOCAL) urban forms are highly efficient both in supporting the social andeconomic functions of cities and in overall energy use (Annex 7). The benefits of LOCAL urbanforms are well accepted among Chinese experts and recognized by concerned policy makers.LOCAL urban forms demonstrate the following common characteristics:
(a) Compact urban areas with high densities of buildings and residents;
(b) Dense and interconnected network of streets of different functions;
(c) Streets are places for people and promote walking;
(d) A variety of amenities, such as transit, schools and parks, accessible by walking;
(e) Neighborhoods with mixed uses at street-block scale;
(f) Small street-blocks with diversified block typologies and adaptive qualities; and
(g) Buildings designed to optimize sun exposure and local climate conditions.
8. The State Council identified key actions for the building sector in the 12th FYP period,including comprehensive promotion of building EE through planning, regulations, standards,technologies and designs; development and implementation of a green building action plan;strengthening the energy monitoring and management system for public and commercialbuildings; improving energy audit and energy disclosure to support building energy retrofit andoperational management; and promotion of RE and building integration. The State Council alsospecifically called for carrying out low-carbon community pilots to integrate communityplanning and design, transportation, energy and other infrastructure systems, green buildings,and lifestyle. Challenges to achieving success in these actions in cities are significant. Severalkey constraints include:
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(a) Prevailing urban spatial planning standards and regulations are not conducive tothe development of LOCAL urban forms and have few levers for EE and REdeployment. In fact, some of the national urban planning rules for the planning anddesign of city streets and blocks impede efficient use of urban land and urbanmobility and have long-term negative effects on the overall EE of cities (Annex 7).Government efforts for promoting EE and RE in cities so far have primarily focusedon individual buildings, missing important opportunities to address these issues atthe urban scale through the statutory urban planning process;
(b) Little is known or disclosed about the energy performance of existing public andcommercial buildings, impeding informed decision-making on EE retrofit andenerv management for this fast growing building segment. The nationalgovernment and cities are ramping up efforts to improve EE in public andcommercial buildings through retrofitting and implementing increasingly stringentbuilding energy codes. But EE investments in public and commercial buildingsremain anemic and significant difficulties exist in incentivizing and mobilizingfinancing. The well-known barriers (e.g., split incentives and high transaction costs)notwithstanding, the lack of basic building energy performance data and the absenceof market valuation of building EE in real estate transactions hindersprivate/commercial actions and targeted government policies;
(c) Scaling-up of green buildings in cities is constrained by a lack of effective policyinstruments, scarce empirical information about their tangible values, and oftenmisguided design practices (e.g., showcasing technologies instead of optimizingarchitecture designs to local climatic conditions and customs). The interest inbuilding green has grown significantly along with the interest in low-carbon cities.Emerging experiences and lessons that need to be evaluated to support greater scale-up efforts in cities like Beijing where the green building program is more advancedthan in most other cities in China. There is also much need for knowledge transferand good practice demonstration in cities like Ningbo where the green buildingprogram is fledgling and guidance on optimizing designs is important; and
(d) Scaling-up rooftop solar PV deployment in cities is constrained by the lack otexperience in incorporating distributed power generation into local grids, viablebusiness models for market azzrejation, and city-level capacity to support marketdevelopment. While the costs of solar PV systems have declined significantly inrecent years, strong market development support is needed to overcome projectdevelopment and financing barriers. Local grid companies in general have noexperience in handling small, intermittent and distributed power sources. Beijing istaking a big step to increase its rooftop solar PV power supply by investing in a totalof 100 MW in its public schools and colleges. If commercially successful this couldbe replicated in many Chinese cities with favorable solar energy resources.
9. The Global Environment Facility (GEF) and the World Bank will partner withMOHURD, Beijing and Ningbo Municipalities to address the above constraints. The proposedactivities will establish linkages between city-level efforts and those of MOHURD, forming thebasis of a national dissemination platform that would promote replication of good practices andpolicies, accelerating adoption of both EE and RE in urban areas.
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10. The proposed project is among several innovative operations and analytical and advisoryservices promoting sustainable approaches to the development of low carbon cities in China.A recent World Bank report on low carbon cities broadly suggests a two-part strategy, focusingon cross cutting actions that create favorable policy environment for low carbon cities andfocusing on actions that address specific sectoral challenges needed to realize low carbonoutcomes. On the latter, the Bank has been engaged in analytical work and operations across awide range of sectors. The projects generally focused on energy efficiency-specific or renewableenergy specific challenges and solutions. This proposed project complements and buildssynergies with several Bank/GEF operations which are being prepared or under implementation.The proposed Project will seek to build upon ongoing and new projects and analytical work bytaking a step in addressing some of the cross-cutting linkages to urban spatial planning, a first-time effort in the Bank's operations portfolio.
C. Higher Level Objectives to which the Project Contributes
11. The objective of the proposed project is fully consistent with the Country PartnershipStrategy (CPS) for FY2013-FY2016. It directly supports one of the two strategic themes of thenew CPS: supporting greener growth (and, in particular, shifting to a sustainable energy path).This strategic theme supports China's efforts to meet its ambitious goals for creating a resource-efficient, environmentally-friendly society. It also supports China's undertakings to improve EE,expand use of RE and address climate change. The project is also fully consistent with theobjective of the Climate Change focal area of the GEF Trust Fund, which is to help developingcountries and economies in transition contribute to the overall objective of the United NationsFramework Convention on Climate Change (UNFCCC).
II. PROJECT DEVELOPMENT OBJECTIVES
A. PDO
12. The proposed project development objective is to improve selected national and city-levelpolicies for (1) the promotion of low-carbon, adaptive and livable urban forms; (2) an increase inenergy efficiency in public and commercial buildings; and (3) the scale-up of commerciallyviable rooftop solar PV deployment.
13. The global environment objective of the proposed project is to reduce carbon dioxide(C0 2) emissions from buildings in selected Chinese cities by supporting improved policy makingand implementation in promoting low-carbon, adaptive and livable urban forms, increasingenergy efficiency in public and commercial buildings, and scaling up commercially viablerooftop solar PV deployment.
Project Beneficiaries
14. The project will benefit the following groups of national and city entities directly:
(a) Government: MOHURD, Beijing Municipal Government (BMG), Ningbo MunicipalGovernment (NMG), and additional selected municipal governments, including theirconcerned agencies or departments, such as Beijing Housing and Urban-RuralDevelopment Commission (BHURDC), Beijing Urban Planning Commission
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(BUPC), Beijing Development and Reform Commission (BDRC), Ningbo Housingand Urban-Rural Development Committee (NHURDC), and Ningbo PlanningBureau (NPB);
(b) Institutes and university departments of urban planning and architecture;(c) Local contractors participating in the pilot and demonstration projects; and(d) Owners and tenants of buildings involved in the proposed project.
PDO Level Results Indicators
15. The PDO level results indicators include:
(a) LOCAL urban planning and design principles recommended for inclusion instatutory urban planning standards and regulations;
(b) Energy performance benchmarking and disclosure (EPB&D) program for largepublic and commercial buildings developed at the national level and adopted byselect cities;
(c) Number of renewable energy service contracts; and,(d) CO 2 emissions reduction associated with GEF assistance.
III. PROJECT DESCRIPTION
A. Project Components
16. Component 1: Promoting the Development of Low-carbon, Adaptive and Livable UrbanForms (total cost US$8.76 million, including $4.25 million GEF grant and $4.51 millioncounterpart financing). The main objectives of this component are (i) to assist MOHURD inbuilding consensus on policy directions and improving key statutory urban planning standardsand regulations which have direct impact on urban forms; and (ii) to foster city initiatives inpiloting and adopting urban planning and design principles and practices that result in LOCALurban form. This component includes the following subcomponents and activities:
1A. NATIONAL SUPPORT FOR THE DEVELOPMENT OF LOCAL URBAN FORM (cost US$6million, including $3 million GEF grant) through:
(a) Conducting empirical studies and analyses for informing the improvements ofstatutory urban planning standards and regulations, reviewing urban developmentpolicies which have direct impact on urban form, and developing national guidelines.A series of comparative urban form and energy use studies will be conducted,including Beijing and Ningbo as described in IB and IC below. This will help defineand quantify a common set of metrics/benchmarks for LOCAL urban form forrepresentative Chinese cities and underpin policy discussions.
(b) Supporting national consensus building and capacity development by reaching out toother concerned national government agencies, civil society, and business communitythrough conferences, workshops and training programs for mayors and senior urbanplanning officials. An annual conference will be convened as a key platform fornational policy dialogue on LOCAL urban forms; and
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(c) Supporting selected cities in piloting the development of LOCAL urban formsthrough technical assistance, in addition to the Ningbo pilot described in IC.
1B. BEIJING STUDIES AND ANALYSES (cost US$0.9 million, including $0.45 million GEFgrant) as part of the national studies coordinated by MOHURD this subcomponent willsupport empirical studies and analyses in Beijing, including mainly an urban form studywith specific recommendations on the improvements of Beijing statutory urban planningstandards and regulations.
1C. NINGBO STUDIES AND PILOT (cost US$1.86 million, including $0.8 million GEFgrant):
(a) As part of the national studies coordinated by MOHURD, empirical studies andanalyses in Ningbo, similar to those done in Beijing and in other cities, with specificrecommendations on the improvements in Ningbo statutory urban planning standardsand regulations; and
(b) LOCAL urban form planning pilot. A centrally located area of 5.1 km2 of the 15 km2
Damuwan New Town development has been selected for the pilot. Key activities willinclude revision of the master plan and preparation of the construction control plansfor the pilot area, as well as the planning and concept design of the transport systemof the entire Damuwan New Town, all based on LOCAL urban planning principles.These revised or new plans will be implemented by the Damuwan AdministrativeCommittee (DAC) in phased development of the Damuwan New Town.
17. Component 2: Improving Energy Efficiency in Public and Commercial Buildings (Totalcost US$18.53 million, including $5.25 million GEF grant and $13.28 million counterpartfinancing). The main objectives of this component are (i) to develop methodology and guidelinesfor energy performance benchmarking and disclosure (EPB&D) for large public and commercialbuildings at the national level and to pilot and expand city-level mandatory EPB&D programsand (ii) to improve selected policies and supporting mechanisms for scaling up green buildings inBeijing and Ningbo. This component includes the following subcomponents:
2A. NATIONAL SUPPORT FOR EPB&D FOR LARGE PUBLIC AND COMMERCIAL BUILDINGS
(cost US$1.2 million, including $0.6 million GEF grant) by assisting MOHURD in:
(a) Development of model benchmarking and disclosure methodology and associatednational guidelines for EPB&D with inputs from the pilot programs in Beijing andNingbo; and
(b) Design and implementation of a national program for replicating EPB&D inadditional cities, including technical assistance for additional cities;
2B. IMPROVING POLICIES AND IMPLEMENTATION CAPACITY IN BEIJING (cost US$3.9million, including $2.05 million GEF grant) by supporting key municipal initiatives inpromoting EE in public and commercial buildings and scaling up green buildings:
(a) Design and implementation of a mandatory EPB&D program for large public andcommercial buildings, including a pilot program for selected buildings types (e.g.,
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offices, hotels, and shopping malls), followed by developing procedures forintroducing a local mandate for EPB&D;
(b) Supporting improvement of key policy instruments and mechanisms in view ofinternational best practices, including studies and analyses to inform the revisions ofkey regulations, formulating new policies for promoting building EE and greenbuildings, and establishment of an on-line registry and certification platform for greenbuildings; and
(c) Outreach and training of local construction trades to meet new or revised policy andregulatory requirements.
2C. IMPROVING POLICIES AND IMPLEMENTATION CAPACITY IN NINGBO (cost
US$ 13.43million, including $2.6 million GEF grant) by supporting key municipalinitiatives in promoting EE in public and commercial buildings and scaling up greenbuildings, including:
(a) Design and implementation of a mandatory EPB&D program for large public andcommercial buildings. This will be carried out in conjunction with the establishmentof Ningbo's online energy monitoring program for large public and commercialbuildings, providing an example of integrating EPB&D into the on-line energymonitoring systems for other cities;
(b) Supporting demonstration of bioclimatic and cost-optimal designs for new greenbuildings and green building-retrofits incorporating international best practices; and
(c) Policy studies and training of local construction trades to meet new or revised policyand regulatory requirements.
18. Component 3: Scaling-up Commercially Viable Rooftop Solar PVDeployment (total costUS$2 million, provided by GEF grant). The main objective of this component is to assist Beijingin its effort to increase the deployment of grid-connected rooftop solar PV systems through therenewable energy service company (RESCO) business model. This component is carried out inconjunction with the proposed Beijing Rooftop Solar PV Scale-Up Project (P125022), which hasa total financing of US$239.7 million. Component 3 includes the following activities:
(a) Supporting the demonstration of RESCO business model for large-scale grid-connected rooftop solar PV deployment. This will include assistance instrengthening the capacity of Yuanshen Company, the RESCO responsible forimplementing the Beijing Rooftop Solar PV Scale-up Project, as well as support forindependent monitoring and evaluation of the implementation and results of theRESCO approach, along with related outreach and dissemination efforts;
(b) Supporting the demonstration of two-way metering, including providing support forBeijing Grid Company to analyze the impact of two-way metering for grid-connected rooftop PV systems on the operation and management of the local gridand develop technical and business solutions for incorporating rooftop solar PVsystems into the local grid;
(c) Establishing a solar energy information portal, including an on-line monitoringsystem for the rooftop PV systems, information about rooftop solar PV installations,
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relevant policies and procedures, local project developers and equipment suppliers,and other relevant information; and
(d) Supporting improvement of renewable energy education in Beijing's schools byimproving student access to hands-on activities, supporting student leadership andinnovation activities, and improving the content and delivery of the renewableenergy education.
19. Component 4: Project Management (total cost US$1.3 million, including $0.5 millionGEF grant and $0.8 million counterpart financing). This component supports theimplementation, monitoring and reporting activities by the government implementation agenciesthrough their respective project management offices (PMOs).
B. Project Financing
Project Cost and Financing
20. The GOC has requested a US$12 million grant from the GEF to conduct the project. Tosupplement the grant, a total amount of US$18.59 million in counterpart funding will beprovided by MOHURD, Beijing and Ningbo Municipalities, and other project beneficiaries.
GEF Counterpa Total CostProject Components (000USD) % rt % (000USD)(000USD)
1. Promoting Low-carbon, Adaptive and Livable Urban Forms 4,250 49% 4,510 51% 8,760
]A National support for the development ofLOCAL urban form 3,000 3,000 6,000
IB Beijing studies and analyses 450 450 900IC Ningbo studies and pilots 800 1,060 1,860
2. Improving Energy Efficiency in Public and Commercial Buildings 5,250 28% 13,280 72% 18,5302A National support for EPB&D for large public and commercial buildings 600 600 1,200
2B Improving policies and implementation capacity in Beijing 2,050 1,850 3,900
2C Improving policies and implementation capacity in Ningbo 2,600 10,830 13,430
3. Scaling up Commercially Viable Rooftop Solar PV Deployment in Beijing 2,000 100% 0 0% 2,000
4. Project Management 500 33% 800 67% 1,300
Total Project ('000 USD) 12,000 39% 18,590 61% 30,590
C. Lessons Learned and Reflected in the Project Design
21. China has a unique and successful approach to develop and implement wide-reachingpolicies and regulations that emphasizes pilots, followed by broadened demonstrations to buildconsensus before rolling out national implementation programs. National leadership and city-level innovations and actions are both critical to achieving sustainable urban developmentoutcomes. In China's policy system, major national initiatives almost always start with pilotswhich give cities or regions freedom to experiment while providing empirical evidence forconsensus building. The experiences and lessons learned in the pilots are then incorporated intonational guidelines or policies to be adopted nationally or regionally, with support from thecentral government through relevant line ministries. Such nationally coordinated policy reformor formulation process has proven effective and successful in the last 30 years or so, and theBank has supported many such approaches. This framework of enabling and supporting policy
8
innovations will be critical for cities to implement low-carbon development strategies. Theproposed project adopts this interactive national and local policy improvement process.
22. Promoting the development of LOCAL urban forms needs to focus on the key globallessons learned in urban spatial development and its relations to cities livability andadaptability. Low-carbon or green urban development is a large system engineering of social,economic and environmental dimensions. Picking the right entry point for policy intervention iscrucial to achieving large and lasting impact timely in view of China's rapid urbanization. Theproposed project will support policy improvements aimed at mainstreaming a set of principlesthat have direct impact on the form and fabric of urban built-up areas, which in turn havesignificant impact on EE and RE deployment in cities, as well as cities' social and economicwellbeing. These principles were derived from global and historical evidence (Annex 7). Theysignify that sustainable urban development needs to incorporate the time-proven, efficient andfunctional spatial organization practices of cities which were built over hundreds of years. Thesingular lesson derived from those best practices is that, to achieve LOCAL objectives, moderncities need to be planned and designed at human scale (measured by walking distance, not by thespeed of cars) and maximize walkability to all essential urban amenities.
23. The principle behind building energy performance benchmarking and disclosurerequirements is the old adage: you cannot manage what you do not measure. These programsrequire building owners to periodically submit building performance information to thegovernment, to potential buyers, and/or to the public at large. The intention of such programs isto fill the information gap that currently exists in real estate transactions. Buyers, sellers andrenters have little to no information about how a building consumes energy before purchasing orleasing it, even though this will affect their investment in the buildings. This information gap isrepressing demand for EE buildings, which negatively affects tenants and owners and hinderscities from addressing rising greenhouse gas emissions. EPB&D can leverage market forces forefficient buildings and help better target government policies.
24. Grid-connectedness and two-way metering are critical to scaling up commercially viablerooftop solar PV deployment in cities. Experiences from developed countries, such as Germanyand the US, as well as from developing countries, such as Mexico, indicate that allowing free-flowing between the distributed solar PV systems and local grid poses no essential technicalproblems for grid operation when the connected capacity is a small share of the overall localcapacity (20 percent is usually considered a threshold). It also opens up opportunities for energyservice companies to aggregate distributed projects to achieve economies of scale. Beijing willbe the first case where a large number of grid-connected rooftop solar PV systems will comeonline in a short period of time. The local utility needs to be aware of the potential operationalissues arising from grid-connected rooftop solar PV systems and have the solutions. There arealso significant potential benefits of having these distributed systems. Local distributioncompanies in China have not been exposed to these issues until now.
25. This project complements and builds synergy with several Bank/GEF projects which arebeing prepared or under implementation. Notably, (i) collaborating with the Green Energy forLow Carbon City in Shanghai Project on EPB&D. The Shanghai project has a proposedinvestment program in retrofitting public and commercial buildings and technical assistance tolocal government in developing a performance-based building retrofit policy framework usingenergy benchmarks. This would provide additional empirical information to support the designand replication of the national EPB&D program under the proposed project. On the other hand
9
the proposed project would be able to share the experience in Beijing and Ningbo; (ii)collaborating with the Large-City Congestion and Carbon Reduction Project on national and citylevel transport planning issues, especially in the areas where coordination between the urbantransport sector and urban planning sector is needed; and (iii) assessing experience from theTianjin Sino-Singapore Eco-City Project, particularly in the area of spatial planning.
IV. IMPLEMENTATION
A. Institutional and Implementation Arrangements
26. The proposed project will be implemented by the Ministry of Housing and Urban-RuralDevelopment (MOHURD), Beijing Housing and Urban-Rural Development Commission(BHURDC), Beijing Development and Reform Commission (BDRC) and Ningbo Housing andUrban-Rural Development Committee (NHURDC), each accountable for a defined set ofactivities that collectively contribute to the achievement of the PDO.
27. MOHURD will implement subcomponent lA and 2A under Components 1 and 2,respectively, and will provide the overall implementation coordination for both components.MOHURD has established a PMO. A National Advisory Committee (NAC) has beenestablished under the auspices of MOHURD to guide the implementation of Components 1 and2, which requires close cross-department cooperation within MOHURD and outreach to nationaland city-level stakeholders. The NAC is chaired by a vice minister and consists ofrepresentatives from relevant departments of MOHURD, NDRC, Ministry of Finance (MOF),Beijing and Ningbo Municipal Governments.
28. BHURDC will implement subcomponents IB and 2B under Components 1 and 2,respectively. BHURDC has established a PMO.
29. NHURDC will implement subcomponents IC and 2C under Components 1 and 2,respectively. NHURDC has established a PMO. A Ningbo Project Steering Group (NPSG) hasbeen established in Ningbo to provide guidance and cross-department/cross jurisdictioncoordination on the activities implemented by NHURDC. The NPSG is chaired by a vice mayorand consists of representatives from NHURDC, Ningbo Finance Bureau, Ningbo Developmentand Reform Commission, Ningbo Planning Bureau, Xiangshan County Government, DamuwanAdministrative Committee, and Ningbo University.
30. BDRC will implement Component 3 through its PMO established for implementing theBeijing Rooftop Solar PV Scale-up Project.
31. The lines of responsibility for project implementation are depicted in the matrix below.
Component 1 Component 2 Component 3 Component 4NAC MOHURD1A2
PMO 4-BHURDC EIB 2B c
PMONPSG 8
BDRC PMO Subcomponents:(a), (b), (c) & (d)
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32. The implementation of the Ningbo LOCAL urban form pilot will directly involveDamuwan Administrative Committee (DAC), which oversees the development of DamuwanNew Town. The DAC reports to Xiangshan Country Government, which reports to NingboMunicipal Government. The implementation of the Ningbo green building demonstration willinvolve Ningbo University which owns the teaching complex to be retrofitted and the land wherea new office compound will be developed.
33. The implementation of Component 3 will involve additional entities which are directbeneficiaries of the technical assistance, including Yuanshen Company (the RESCO responsiblefor implementing the Beijing Rooftop Solar PV Scale-up Project), Beijing Grid Company (two-way metering pilot), Beijing Energy Conservation and Environmental Protection Center (the hostof the Solar Energy Information Portal), and Beijing Education Commission (renewable energyeducation). BDRC PMO, together with the above four entities, will be responsible for theimplementation of Component 3. The PMO will have the overall responsibility for theprocurement and financial management of this component.
34. Coordination and feedback mechanism for promoting LOCAL urban forms. This is themost innovative activity supported by the project and requires extensive efforts to analyzecritical issues, consult with key national and local stakeholders, and reach consensus on policydirections and specific improvements of urban statutory planning standards and regulations. Anannual national conference on LOCAL urban forms will be organized with participating citiesand the NAC to review the progress on pilots and share empirical evidence and analytical results.This will continuously increase the knowledge base for national decision making, while alsoencouraging more cities to pursue the development of LOCAL urban forms.
B. Results Monitoring and Evaluation
35. Annex 1 lists the PDO level results indicators for the project, as well as the intermediateresults indicators for each component. Each PMO will be directly responsible for themonitoring, evaluation and reporting of the activities under its implementation as describedabove. The MOHURD PMO will be responsible for the consolidation of the periodic monitoringreports of its own-implemented activities and those from the respective PMOs of BHURDC,BDRC and NHURDC, including inputs to the semi-annual and annual reports on compliancewith performance indicators and covenants. A mid-term review will be held to evaluate interimresults and ensure that corrective actions are taken as necessary.
C. Sustainability
36. The three specific policy areas supported by the proposed projects are priorities of the GOCand will be further strengthened in the following aspects:
* The efforts toward development of national guidelines for promoting LOCAL urbanforms will ensure that on-going and future national initiatives in low-carbon and ecocities are anchored on solid, proven, and sustainable spatial planning principles;
* Testing and refinement of the approaches for EPB&D in public and commercial buildingswill ensure robust methodology and replicability among China's varied climate regions;
* Demonstration of bioclimatic and cost-optimal green building design principles will helpenhance consumer and commercial interests in green buildings; and
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* Supporting the RESCO approach for the large-scale deployment of rooftop solar PVsystems in Beijing and their incorporation into the local grid will demonstrate a viablecommercial business model for scaling up solar PV in Chinese cities.
37. MOHURD has strong commitment and ownership to the proposed project which directlysupports its efforts in improving national guidelines, standards and regulations on urban planningand design, building energy efficiency and green buildings, as well as integration of renewableenergy in building and community designs. Beijing and Ningbo have strong commitment andownership of the proposed project which directly support their respective policy agendas onbuilding energy efficiency and green buildings, as well as their desire to lead the innovation inChina's urban energy agenda.
38. Beijing and Ningbo will collaborate closely with MOHURD to ensure that the successfulpilot guidelines and programs that they tested will be replicated to other cities in China. Theproject will spur replication of the experience in Beijing and Ningbo through: (a) comprehensivemonitoring and evaluation systems to provide concrete information on results, benefits, andlessons learned; and (b) design and implementation of a dissemination program. Lessons learnedwill be incorporated for additional pilot cities and shared with other cities in China, as well aswith other countries (e.g., through the World Bank Institute Climate Change Program and theEnergy Sector Management Assistance Program).
V. KEY RISKS AND MITIGATION MEASURES
A. Risk Ratings Summary Table
Stakeholder Risk Substantial
Implementing Agency Risk
- Capacity Substantial
- Governance Low
Project Risk
- Design Substantial
- Social and Environmental Low
- Program and Donor Low
- Delivery Monitoring and Sustainability Moderate
- Other (Optional) N/A
- Other (Optional) N/A
Overall Implementation Risk Substantial
B. Overall Risk Rating Explanation
39. Based on discussions with key stakeholders during the identification and preparationmissions, there is a high degree of agreement about the need and importance of the proposedBank/GEF support. But there are cautions about the potential difficulties in the implementationof some proposed activities. This project is designed to address challenges in EE and RE
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deployment in cities from an urban (city-wide) scale, as well as at site and building levels. Theeffort at urban scale on policy support for promoting LOCAL urban forms, is particularlychallenging because it involves many stakeholders that hold various views and promote manyideas, and there is little previous implementation experience to learn from. Introducing EPB&Dfor public and commercial buildings in Chinese cities also carry significant risks because thetechnical complexity of benchmarking building energy performance and the known reservationof building owners towards disclosure of energy data. Given the innovative nature of thisproject, the initial focus will be on consensus building and knowledge sharing, supported byimplementation of initial pilot projects in Beijing and Ningbo. Replication in additional citieswill likely start in the third year of the project implementation. This phased approach isnecessary to tailor assistance to work programming priorities and may require some time formaking adjustments, thus is likely to result in a narrower scope of project activities implementedin the initial stages. The expected timing of results from the Beijing and Ningbo pilots are likelyto result in replication in additional cities in the latter half of project implementation. Theproject has systems in place to adjust and supervise these risks. Overall, the implementation riskis rated as substantial prior to mitigation, but as moderate after mitigation with GEF support. Atthe mid-term review the need to adjust the design of the project will be assessed.
VI. APPRAISAL SUMMARY
A. Economic and Financial Analyses
40. The broad justification of the proposed project is based on incremental cost reasoningrequired by the GEF. The incremental global environmental benefit is measured by theincremental CO 2 emissions reduction attributable to the GEF assistance based on comparison ofa baseline scenario and a GEF alternative scenario. Since the proposed project support primarilyimprovements of policies and implementation capacities at both national and municipal levels,the full materialization of the impact of these policy and capacity improvements on emissionsoutcome is likely to take longer time than the implementation period of the project itself. Aconservative approach is adopted to estimate the incremental benefit associated with theproposed project: (i) the annual CO 2 emissions reduction achieved at the end of projectimplementation is estimated based on incremental EE improvements and RE deploymentattributable to the GEF during the project implementation period; (ii) the cumulative CO 2emissions reduction attributable to the GEF at the end of project implementation is calculated for15 years out; and (iii) an undiscounted GEF incremental cost per ton of CO 2 emissions reductionis calculated. Based on the scenario analysis, the total estimated incremental emissions reductionattributable to the GEF at the end of project implementation is about 15 million tons of CO 2.The undiscounted GEF incremental cost is about US$0.8/ton-CO 2, compared to the current priceof about US$4/ton-CO 2 of certified emission reduction (CER) in the European Union (EU).
B. Technical
41. An important aspect of the studies and analyses supported by the project is to learn fromrelevant global experiences and knowledge, especially in the areas of promoting LOCAL urbanforms, introducing mandatory EPB&D program for large public and commercial buildings, andin green building design. This will be supported by recruiting internationally experienced expertsto advise MOHURD, Beijing and Ningbo, either through individual consultant or QCBS
13
contracts. The technical aspects of the proposed GEF project are mainly associated with theproposed investments in green building demonstrations in Ningbo, which will involvearchitectural design optimization using bioclimatic principles and may include the application ofsolar water heating, solar PV and ground-source heat pump technologies in commercialbuildings, as well as EE enhancing measures for the building envelope, such as thermalinsulation and energy-efficient windows. These are mature technologies with broad commercialapplications. The technical issues associated with the large-scale demonstration of rooftop PVsystems are addressed under the proposed Beijing Rooftop Solar PV Scale-up Project, which hasbeen appraised separately.
C. Financial Management
42. The project will be implemented by four government agencies through their respectivePMOs. Each PMO will be responsible for the project financial management (FM) relatedmatters including project accounting under their respective components. Three designatedaccounts will be opened and maintained by MOF, Beijing Finance Bureau (BFB) and NingboFinance Bureau (NFB) subject to the project activities implemented by MOHURD, BHURDCand BDRC and NHURDC, respectively. A financial management capacity assessment has beenconducted by the Bank and actions to strengthen project's financial management capacity havebeen agreed with the relevant implementing agencies. The FM assessment has concluded thatwith the implementation of these actions, the financial management arrangements will satisfy theBank's minimum requirements under OP/BP 10.02. Annex 3 provides additional information onFM.
D. Procurement
43. A procurement capacity and risk assessment of the project implementing agencies has beenconducted; procurement risks and areas in which the implementing agencies require capacitystrengthening were identified and the agreed mitigation measures are described in Annex 3.MOHURD, BHURDC, BDRC and NHURDC will organize and implement procurement fortheir respective project activities separately. For particular contracts which require consultationand collaboration with other implementing agencies (such as the consulting service for theenergy performance benchmarking and disclosure (EPB&D) pilot and national program designand implementation) the lead agency with responsibility for procurement is clearly identified inthe procurement plan. An initial 12 month procurement plan was prepared and discussed duringproject appraisal. The procurement plan was agreed with the Bank during negotiations and willbe updated at least annually (or as required) to reflect project implementation needs.
E. Social (including Safeguards)
44. The social safeguard issues of the proposed project are associated with the green buildingdemonstration projects in Ningbo. Based on the interviews with project entities and evidenceprovided by them, it is concluded that no Bank social safeguard policies will be triggered by theproposed physical constructions.
45. A gender impact assessment was undertaken during project preparation. It is concludedthat the proposed project does not have particular gender issues which need to be addressed
14
during project implementation. The proposed project will increase EE and RE deployment,contributing to the improvement of local air quality and the global environment and will benefitthe general population equally. Most proposed activities, such as promoting LOCAL urbanforms, EE in public and commercial buildings, and scaling-up commercially viable rooftop solarPV systems, are either upstream studies or pilot demonstrations informing policy improvementsand increasing implementation capacity, which will have equal benefits for men and women withno potential negative social impacts.
F. Environment (including Safeguards)
46. The environmental safeguard issues of the proposed project are associated with the greenbuilding demonstration projects in Ningbo, which include physical construction activities, i.e.,new construction of the Science and Technology Service Building and retrofitting of theArchitecture and Civil Engineering Faculty Building of Ningbo University.
47. Based on the environmental assessment, the proposed activities will have limited adverseenvironmental impacts, i.e. mainly construction related impacts of noise, dust, solid waste, safetyand social disturbance. These impacts are site-specific, insignificant and can be readily mitigatedwith proper design and good construction management. There is no potentially large scale,significant and/or irreversible impacts expected. According to the World Bank's OperationalPolicy 4.01 Environmental Assessment, this project is classified as category B.
48. Environmental Management Plans have been prepared for the new construction and retrofitbuilding, respectively, following national requirements and the World Bank's OP4.01Environmental Assessment and the International Finance Corporation's Environment, Health andSafety General Guidelines. These documents adequately addressed the potential environmentalimpacts and include proper management arrangements, mitigation measures and budget supportfor implementation. A set of generic mitigation measures (Environmental Code of Practices -ECOPs) for common construction-related environmental issues has been included in the EMPs.The chance-find procedure of physical cultural resources is also included in the ECOPs. TheECOPs will be included in the bidding documents/contracts for implementation.
49. Public consultations have been conducted during the EA preparation, and the EMPdocuments have been disclosed locally on the websites of Ningbo Municipal Government andNingbo University, as well as in InfoShop.
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Annex 1: Results Framework and Monitoring
Project Development Objective (PDO): To improve selected national and city-level policies for (1) the promotion of low-carbon, adaptive and livable (LOCAL) urban forms; (2) an increasein energy efficiency (EE) in public and commercial buildings; and (3) the scale-up of commercially viable rooftop solar PV deployment.
Cumulative Target Values** Respons
2 Unit of Frequen Data Source/ ibilityPDO Level Results Indicators* o Baseline for Data
Measure YR3 YR5 cy Methodology Collection
Indicator One: LOCAL urban. ..* Recommendations on revisions and
planning and design principles improvements of statutory urban * Draft national guidelines on the Discussions MOHURrecommended for inclusion in.wthofcasstatuomurned pinglstndars None planning standards and regulations development of LOCAL urban Annual with officials, D PMOstatutory urban planning standards mdfospraedreports fromand regulations. consultants
Indicator Two: Energy P Official national guidelines onperformance benchmarking and EPB&D for public and commercialdisclosure (EPB&D) program for and commercial buildings buildings issued Discussions MOHURlarge public and commercial None completed in Beijing and Ningbo e Beijing, Ningbo and two additional Annual with officials, D PMObuildings developed at the national Pilots of EPB&D for large public cities issued official ordinance on reports fromlevel and adopted by select cities and commercial buildings launched adopting mandatory EPB&D for consultants
in 2 additional cities large public and commercialbuildings
IndependentIndicator Three: Number of monitoring and BDRCrenewable energy service contracts Zr 4376Anul evaluation PMO
________report
IndcaorFou: 02emisinsIndependent BDRCMetric omonitoring and PMOreduction associated with GEFassistance tonievalcio natdaa gMO
INTERMEDIATE RESULTS
Intermediate Result (Component One): Understanding of the issues and options in development of LOCAL urban form enhanced, decision-making on improvements of statutory urbanplanning standards and regulations informed, national consensus on necessary actions increased.
YRI YR2 YR3 YR4 YR5
Intermediate Result indicator Onea n Reports from MOHURurban form studies completed or d cinge consultants D PMO
adptngmadtoybPBD)o
Intermediate Result indicator Two: Training program MOHURmayors and city planning officials None 30 60 90 120 150 Annual records, feedback D PMOtrained __ _from participants
16
Intermediate Result indicator 1 Discussions with
Three: city pilots of LOCAL urban None (Damuwan 2 3 Annual involved ities, MOHURanddeig coplte Upilot reports from D PMO
planning and design completed completed) consultants
Intermediate Result (Component Two): Methodology for BEP&D for large public and commercial buildings developed and piloted, building EE and green building policies andimplementation capacity improved in Beijing and Ningbo
Draft national * Beijing and National
Intermediate Result indicator One: Beijing and EPB&D Ningbo pilots EPB&D The two additional Discussions with
national and city EPB&D pilot H None Ningbo pilots methodology completed methodolo city pilots Annual involved cities, MOHUR
programs implemented launched and guidelines city pilots guidelines completed consultantsprepared launched finalized
* Beijing * Beijing green
Building EE buildingevaluation
management standardsregulation revised TechnicalrevisedStudy of * Management and
Intermediate Result indicator Two: issues and guidelines for economic One to two
Selected building EE and green options for eeopment aluation additional iscussions withbuilding policies in Beijing H None greening zones selected relevant policy Annual city officials ad BHURDC
improved and new policies housing peed gree studies consultantsinformed development prepared greencopedcnslat
iopet Beijing EE buildings completedcompleted code for completed
* On-lie green public andbuldn commercial
certification buildingsregistry bi.Iig
established revised
Intermediate Result indicatorThree: outreach to local Minutes and/or BHURDCstakeholders and training of local Zero 200 400 600 800 1000 proceedings of PMOtrades in Beijing (number of people workshopstrained)Intermediate Result indicator Million Green building BHURDCFour: floor area of green buildings square 3 6 9 12 15 certification PMOin Beijing received certificates meters registry
Intermediate Result indicator Five: Designs Green New greenbioclimatic and cost-optimal green Designs finalized and retrofit building Procurement NHURDC
.None demonstrat . Annualbuilding designs demonstrated in tendered construction i demonstration documents PMO
Ningbo started completed completed
Intermediate Result indicator Six: Ningbo green Ningbo green Ningbo Discussions withgreen building policies in Ningbo building design building scale- green city officials, NHURDCimproved and new policies guidelines up roadmap building reports from PMOinformed drafted study design consultants
17
completed guidelinesissued
Intermediate Result indicatorSeven: outreach to local Minutes and/or
NHURDCstakeholders and training of local Zero 200 400 600 800 Annual proceedings of PMOtrades in Ningbo (number of workshopspeople trained)
Intermediate Result (Component Three): RESCO business model for large-scale rooftop solar PV deployment in public buildings demonstrated and lessons and experiences disseminated,local market development support strengthened, and renewable energy education at local public schools enhanced
Intermediate Result indicator One:Installed rooftop solar PV capacity Independent BDRCunder the Beijing Rooftop Solar Zero 35 70 90 95 100 Annual monitoring and PMOPV Scale-up Project
Intermediate Result indicator Two: Intermediate Final Reports fromimproved knowledge of local grid metering pilot results t o results consultants, BDRCcompany about handling grid- launched reviewed in completed shared in workshop PMOconnected rooftop PV systems workshop workshop proceedings
Work on on- On-line Beijing solar
Intermediate Result indicator line monitoring energy Discussions with
Three: establishment ofBeijing momitormg system information portal Annual implementation BDRCr a complete operational with a entity, reports PMO
solar energy iformation portal system website for public from consultantslaunched.
information access
Intermediate Result indicatorFour: renewable energy education Discussions withdelivery in public schools implementation BDRCenhanced (number of entity, reports PMOdemonstration laboratories from consultantsestablished)
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Annex 2: Detailed Project Description
1. The main areas of GEF/World Bank support are: (i) promoting the development of LOCALurban form; (ii) improving EE in public and commercial buildings; and (iii) scaling-upcommercially viable rooftop solar PV deployment. The support is channeled through fourcomponents. The activities were designed to facilitate the process of using cities pilots anddemonstrations to inform national policy formulation.
2. Component 1: Promoting the Development of Low-carbon, Adaptive and Livable UrbanForms (total cost US$8.76 million, including $4.25 million GEF grant and $4.51 millioncounterpart financing). The main objectives of this component are (i) to assist MOHURD inbuilding consensus on policy directions and improving key statutory urban planning standardsand regulations which have direct impact on urban forms; and (ii) to foster city initiatives inpiloting and adopting urban planning and design principles and practices that result in LOCALurban form. This component includes the following subcomponents and activities:
1A. National Support for the Development of LOCAL Urban Form: this subcomponentwill assist MOHURD in improving relevant statutory urban planning standards andregulations, support national consensus building and city pilots by:
(a) Conducting empirical studies and analyses for informing the improvement ofstatutory urban planning standards and regulations, reviewing urban developmentpolicies which have direct impact on urban form, and developing nationalguidelines. A main area of analysis will be a series of comparative urban form andenergy use studies of selected cities in different climate zones, including Beijingand Ningbo as described in IB and IC below. This will help define and quantify acommon set of metrics/benchmarks for LOCAL urban form for representativeChinese cities and underpin policy discussions. A common set of TOR for urbanform study and other key empirical analyses will be used for Beijing, Ningbo andadditional cities selected by MOHURD to ensure the consistency of methodologyand analytical results for informing policy making in urban statutory planningstandards and regulations.
(b) Supporting national consensus building and capacity development by reaching outto other concerned national government agencies, civil society, and businesscommunity through consultation workshops and training programs for mayors andsenior urban planning officials. An annual national workshop on development ofLOCAL urban forms will be organized for sharing experiences among cities. Thisevent will also coincide with the annual meeting of the National AdvisoryCommittee for them to review the progress and developments and provideguidance. A training course will be developed for mayors and urban planners andwill be continuously delivered through the regular training program for mayors runby MOHURD. Overseas study tours will be organized for selected mayors whohave participated in the training program to learn from their international peers.
(c) Supporting selected cities in piloting the development of LOCAL urban formsthrough technical assistance, in addition to the Ningbo pilot described in IC.Additional pilots of LOCAL urban form will be supported by MOHURD throughsubcomponent lA. The candidate cities will be selected by MOHURD together
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with the World Bank based on the commitment of city leaders to making revisionsof existing master plans and construction control plans to be implemented in newurban development areas or redevelopment areas, capacity of local institutions, andthe availability of large-scale urban development or redevelopment sites.
1B. Beijing Studies and Analyses, as part of the national studies coordinated byMOHURD, will support empirical studies and analyses in Beijing, including mainly anurban form study with specific recommendations on the improvements of Beijingstatutory urban planning standards and regulations.
1C. Ningbo Studies and Pilot(s) will include:
(a) As part of the national studies coordinated by MOHURD, empirical studies andanalyses in Ningbo, similar to those done in Beijing and in other cities, withspecific recommendations on the improvements in Ningbo statutory urban planningstandards and regulations; and
(b) LOCAL urban form pilot. The Damuwan New Town is identified as a pilot forimprovements in master planning and construction control planning to demonstratethe effects of adopting LOCAL urban planning and design principles. The overall
2Damuwan development plan covers about 15 km and a projected population ofabout 70,000 when fully developed in 10 to 15 years. The current master planfollows the common approach in contemporary China of separating residential andcommercial areas and division of urban land by super blocks that promotes car-based mobility. Support will be provided to the Damuwan AdministrativeCommittee to revise the master plan of a centrally located 5.1 km2 area slated forboth commercial and residential development. The proposed activities includerevision of the Master Plan for the area and the associated construction controlplans' to be implemented by the Damuwan Administrative Committee over thecourse of the development. The support to the Damuwan pilot will also include theplanning and concept design of the transport system of the entire Damuwan NewTown, which will seek to optimize both the road network and the mix of transportmodes under the design principles of LOCAL urban forms.
3. Component 1 GEF grant allocation by subcomponent and first year activities aresummarized in the table below:
1 China's statutory urban planning includes three levels of spatial planning requirements: (1) the master planprovides the overall plan for land development and infrastructure; (2) the construction-control plans then providedetailed requirements on how a particular parcel/section of land should be developed, including specific limits ontypes of functions (e.g., commercial or residential), detailed infrastructure layout and physical parameters, such asbuilding density, heights, sizes and setbacks, etc.; (3) the detailed construction plans (or site plans), which areprepared by developers for official review and approval, elaborate on how exactly a specific site will be developedand will meet the requirements of the construction control plan.
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Subcomponent and GEF grant First Year Activity NoteResponsible PMO allocation
('000USD)1A (MOHURD) 3,000 (1) Overall program design and planning, including MOHURD will
establishment of an expert group consisted of develop anational and international consultants to help common set ofMOHURD design and plan the national support TOR for theprogram for LOCAL urban forms urban form
(2) Study on issues and options in improving statutory studiesurban planning standards and regulations in viewof supporting the development of LOCAL urbanforms
(3) Selection of two additional cities for urban formstudies
(4) Development of training course on LOCAL urbanforms and inaugural class of mayors and cityplanners
(5) First national conference on LOCAL urban forms1B (BHURDC) 450 Beijing urban form study1C (NHURDC) 800 (1) Ningbo urban form study
(2) Damuwan pilot area master plan revision andcontrol plan preparation
(3) Damuwan New Town transportation systemplanning and design study
4. Component 2: Improving Energy Efficiency in Public and Commercial Buildings (Totalcost US$18.53 million, including $5.25 million GEF grant and $13.28 million counterpartfinancing). The main objectives of this component are (i) to develop methodology and guidelinesfor energy performance benchmarking and disclosure (EPB&D) for large public and commercialbuildings at the national level and to pilot and expand city-level mandatory EPB&D programsand (ii) to improve selected policies and supporting mechanisms for scaling up green buildings inBeijing and Ningbo as a broad strategy for improving EE in public and commercial buildings.Benchmarking of building energy is a comparison of how efficiently a building uses energycompared to a baseline measurement. The baseline measurement may be defined on a per-square-meter basis and controlled for building size, operational type, tenancy type and regionalweather. The disclosure component of the program can be organized in two distinct ways,transactional disclosure and scheduled public disclosure. Transactional disclosure is triggered atthe point of sale or lease for a building, with the information only being provided to thebuyer/renter or interested parties. Public disclosure of information can be triggered by a scheduleof disclosure predetermined by the program policy. For example, a city may report allbenchmarking data for all participating buildings every year through a public website or report.Specifically, this component will consist of the following subcomponents:
2A. National Support for EPB&D for Large Public and Commercial Buildings: thissubcomponent will assist MOHURD in piloting and scaling up city-level mandatoryEPB&D for large public and commercial buildings by:
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(a) Development of model methodology and national guidelines for EPB&D withexperience from the pilot programs in Beijing and Ningbo: As part of this activity,the past and ongoing experience with online energy monitoring platform, andwithin the region for developing a voluntary hotel industry benchmarking will beassessed. This activity will also assess benchmarking methodologies used indifferent countries, such as USA and Germany. The benchmarking methodologywill be developed and finalized in consultation with ongoing efforts in Beijing andBeijing will also lead the design of a disclosure policy. Ningbo will pilot theintegrated building management program by combining the online energymonitoring system with an EPB&D program. Multi-layered disclosure guidelineswill also be developed so that cities can phase in the disclosure policy by providingaccess to the benchmarking data to the building owners, the government, buyersand the public. A set of national guidelines will be prepared for implementation ofthe EPB&D program in cities.
(b) Design and implementation of a national program for replicating EPB&D inadditional cities, including technical assistance for additional cities: As part of thisactivity, EPB&D programs implemented in other countries will be assessed. Thisprogram will also build on the experience of the pilot cities. MOHURD willdevelop a national program to replicate EPB&D by establishing a national databasefor benchmarking and by expanding the online energy monitoring system to enableintegrated building energy management at city level. MOHURD will providetechnical support to additional cities in using the guidelines and establishingEPB&D programs.
2B. Improving Policies and Implementation Capacity in Beijing: this subcomponent willsupport key municipal initiatives in promoting EE in public and commercial buildingsand scaling up green buildings by:
(a) Design and implementation of a mandatory EPB&D program for large public andcommercial buildings, including a pilot program for selected buildings types (e.g.,offices, hotels, and shopping malls), followed by developing procedures forintroducing a local mandate for EPB&D: This activity will include a study of thebuilding sector to identify major building types, identification of specific categoriesfor development of benchmarks, a detailed survey of a sample of the buildingcategory and the development of benchmarks for Beijing. This activity is closelylinked with activity 2A (a) as the experience from Beijing will directly contribute tothe development of the benchmarking methodology in China. As the city of Beijingis significantly advanced in the benchmarking related activities, the Beijing pilotwill lead the development of city-level disclosure program. This activity willprovide support for consultations and consensus building for design andimplementation of the EPB&D program.
(b) Supporting improvement of key policy instruments and mechanisms in view ofinternational best practices. This will include studies and analyses to inform therevisions of key regulations, formulating new policies for promoting building EEand green buildings, including mainly, the establishment of a mechanism forpromoting green buildings in new development zones (e.g., linking land salesagreements with green building and CO 2 emission commitments), revision of the
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energy efficiency standards for public and commercial buildings, revision of themunicipal building energy efficiency management regulation, post operationtechnical and economic evaluation of green buildings, and revision of greenbuilding evaluation standards. Support will also be provided for the establishmentof an on-line registry and certification platform for green buildings; and
(c) Outreach and training of local construction trades to meet new or revised policy andregulatory requirements.
2C. Improving Policies and Implementation Capacity in Ningbo: this subcomponent willsupport key municipal initiatives in promoting EE in public and commercial buildingsand scaling up green buildings by:
(a) Design and implementation of a mandatory EPB&D program for large public andcommercial buildings. This activity will be carried out in conjunction with theestablishment of Ningbo's online energy monitoring program for large public andcommercial buildings. Ningbo will contribute to activity 2A(a) by piloting theintegrated building management system, which combines the online energymonitoring program and the EPB&D program. The specific activities will includedetailed energy survey and metering for pre-identified categories of buildings toestablish the benchmark for select building types in Ningbo and to define thesoftware requirements to link the online energy monitoring system and thebenchmarking platform.
(b) Supporting demonstration of bioclimatic and cost-optimal designs for new greenbuildings and green building-retrofits incorporating international best practices. Abioclimatic design requires architecture to design a building that is adaptive to localclimate and custom of living so as minimize active energy use.2 GEF support toNingbo's green building demonstration will be provided through incremental cost-sharing. The new construction of the Science and Technology Service Building islocated in the existing campus of Ningbo University. The location is an empty lotwhich used to be a nursery garden of the university. The building is to be designedas a "Three Star" national green building, with extensive application of new designconcepts and technologies in energy efficiency, water efficiency, material saving,etc. The retrofitting of the Architecture and Civil Engineering Faculty Building is toadd 1-2 floors to the existing faculty building in the campus, install solar energysystems, and carry out energy-efficiency retrofitting of the building envelope. Theaim of the retrofit is to achieve a "Two Star" national green building rating. Thedesigns of the two demonstrations will be competitively tendered internationally.One firm will be selected to carry out both designs. The incremental cost sharing ofthe GEF grant should not exceed 50 percent of the total incremental cost of thedemonstration projects and will be capped at US$1.4 million; and
(c) Policy studies and training of local construction trades to meet new or revisedpolicy and regulatory requirements.
2 Bioclimatic design often focus on three sets of issues: (i) Design strategies that reduce or eliminate the need fornon-renewable energy resources; (ii) How these strategies specifically shaped the building plan, section, andmassing; and (iii) How these strategies specifically affected placement, orientation, and shading of the building.
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5. The building EPB&D activities supported by this component of will result in the creationof a China national EPB&D program for large public and commercial buildings that isimplemented at city level. The three sub-components of the project are led by MOHURD,Beijing and Ningbo. MOHURD team will lead the development of the national program,including the benchmarking methodology and guidance for cities on implementation of theprogram. The Beijing team will implement a pilot of the EPB&D program, while taking the leadon developing and testing the disclosure program as Beijing intends to mandatorily require allspecified buildings to disclose the benchmarking data. Ningbo will implement a pilot of theEPB&D program, while taking the lead on identifying the software and technical requirements tointegrate the online building energy monitoring platform and the benchmarking program.MOHURD has developed technical guidelines for implementing the building energy monitoringplatform. As Ningbo is currently implementing the platform, the experience of integration of themonitoring platform with the benchmarking program will be used to revise existing MOHURDguidelines and enable streamlining of the building energy efficiency work in cities.
6. A joint tender by the three PIUs for consulting service for the EPB&D pilot and nationalprogram design and implementation will be issued. MOHURD will coordinate the selectionprocess and will be responsible for preparing the TOR in consultation with BHURDC andNHURDC, issuing the request for proposal (RFP), and organizing evaluation with theparticipation of BHURDC and NHURDC.
7. Component 2 GEF grant allocation by subcomponent and first year activities aresummarized in the table below:
Subcomponent GEF grant First Year Activity Noteand Responsible allocation
PMO ('000USD)2A (MOHURD) 600 (1) Development of methodology and national guidelines for
EPB&D launched2B (BHURDC) 2050 (1) EPB&D pilot launched
(2) Research for revising Beijing Energy Efficiency DesignStandards for Public and Commercial Buildings
(3) Research for revising Beijing Building Energy EfficiencyManagement Regulation
(4) Research on developing guidelines for greening Beijing'shousing development projects
(5) Establishment of green building evaluation andcertification platform and provision of related training
2C (NHURDC) 2,600 (1) EPB&D pilot launched(2) Procurement of equipment for the on-line building energy
monitoring system(3) Design contract for the green building demonstration
tendered internationally
8. Component 3: Scaling-up Commercially Viable Rooftop Solar PVDeployment in Beijing(total cost US$$2 million, GEF grant). The main objective of this component is to assist Beijingin its effort to increase the deployment of grid-connected rooftop solar PV systems through therenewable energy service company (RESCO) business model. This component is carried out inconjunction with the proposed Beijing Rooftop Solar PV Scale-Up Project (P125022).Component 3 includes the following activities:
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(a) Supporting the demonstration of RESCO business model for large-scale grid-connected rooftop solar PV deployment. This will include assistance in strengtheningthe capacity of Yuanshen Company, the RESCO responsible for implementing theBeijing Rooftop Solar PV Scale-up Project, as well as support for independentmonitoring and evaluation of the implementation and results of the RESCO approach,along with related outreach and dissemination efforts;
(b) Supporting the demonstration of two-way metering, including providing support forBeijing Grid Company to analyze the impact of two-way metering for grid-connectedrooftop PV systems on the operation and management of the local grid and developtechnical and business solutions for incorporating rooftop solar PV systems into thelocal grid;
(c) Establishing a solar energy information portal, including an on-line monitoringsystem for the rooftop PV systems, information about rooftop solar PV installations,relevant policies and procedures, local project developers and equipment suppliers,and other relevant information; and
(d) Supporting improvement of renewable energy education in Beijing's schools byimproving student access to hands-on activities, supporting student leadership andinnovation activities, and improving the content and delivery of the renewable energyeducation.
9. Component 3 GEF grant allocation by subcomponent and first year activities aresummarized in the table below:
Subcomponent GEF grant First Year Activity Noteallocation('000USD)
(a) RESCO 900 (1) Management consultant hired to help strengthen BDRC PMOcapacity Yuanshen RESCO operations and business will bedevelopment development responsible for
(2) Independent M&E consultant hired to conduct the FM and PMimplementation and results evaluation and organize of Component 3knowledge dissemination
(b) Two-way 300 Pilot launchedmetering pilot
(c) Solar 300 (1) Design and implementation of the on-line monitoringinformation portal system started
(2) Procurement of equipment for the on-line monitoringsystem
(d) Renewable 500 Design and planning of renewable energy educationenergy education demonstration laboratories.
10. Component 4: Project Management (total cost US$1.3 million, including $0.5 millionGEF grant and $0.8 million counterpart financing). This will include the implementation,monitoring and reporting activities carried out by the government implementation agencies, i.e.,MOHURD, BHURDC, BDRC and NHURDC through their respective project managementoffices (PMOs). The GEF grant for incremental operating cost support is allocated to MOHURDPMO (US$0.4 million) and NHURDC PMO (US$0.1 million).
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Annex 3: Implementation Arrangements
Project Institutional and Implementation Arrangements
1. The proposed project will be implemented by the Ministry of Housing and Urban-RuralDevelopment (MOHURD), Beijing Housing and Urban-Rural Development Commission(BHURDC), Beijing Development and Reform Commission (BDRC) and Ningbo Housing andUrban-Rural Development Committee (NHURDC), each is accountable for a defined set ofactivities that collectively contribute to the achievement of the PDO.
2. MOHURD will implement subcomponent lA and 2A under Components 1 and 2,respectively, and will provide the overall implementation coordination for both components.MOHURD has established a PMO under the Department of Building Energy Efficiency, Scienceand Technology. A National Advisory Committee (NAC) has been established under theauspices of MOHURD to guide the implementation of Components 1 and 2, which requires closecross-department cooperation within MOHURD and outreach to national and city-levelstakeholders. The NAC is chaired by a vice minister and consists of representatives fromrelevant departments of MOHURD, NDRC, Ministry of Finance (MOF), Beijing and NingboMunicipal Governments.
3. BHURDC will implement subcomponents lB and 2B under Components 1 and 2,respectively. BHURDC has established a PMO.
4. NHURDC will implement subcomponents IC and 2C under Components 1 and 2,respectively. NHURDC has established a PMO. A Ningbo Project Steering Group (NPSG) hasbeen established in Ningbo to provide guidance and cross-department/cross jurisdictioncoordination on the activities implemented by NHURDC. The NPSG is chaired by a vice mayorand consists of representatives from NHURDC, Ningbo Finance Bureau, Ningbo Developmentand Reform Commission, Ningbo Planning Bureau, Xiangshan County Government, DamuwanAdministrative Committee, and Ningbo University.
5. BDRC will implement Component 3 through its PMO established for implementing theBeijing Rooftop Solar PV Scale-up Project.
6. The general line of responsibility of project implementation is depicted in the matrixbelow.
Component 1 Component 2 Component 3 Component 4NAC MOHURD1A2
BDRC PMO Subcomponents:(a), (b), (c) & (d)
7. The implementation of the Ningbo LOCAL pilot will directly involve DamuwanAdministrative Committee (DAC), which oversees the development of Damuwan New Town.The DAC reports to Xiangshan Country Government, which reports to Ningbo Municipal
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Government. The implementation of the Ningbo green building demonstration will involveNingbo University which owns the teaching complex to be retrofitted and the land where a newoffice compound will be developed.
8. The implementation of Component 3 will involve additional entities which are directbeneficiaries of the technical assistance, including Yuanshen Company (the RESCO responsiblefor implementing the Beijing Rooftop Solar PV Scale-up Project), Beijing Grid Company (two-way metering pilot), Beijing Energy Conservation and Environment Protection Center (the hostof the Solar Energy Information Portal), and Beijing Education Commission (renewable energyeducation). BDRC PMO, together with the above four entities will be responsible for theimplementation of Component 3. The PMO will have the overall responsibility for theprocurement and financial management of this component.
9. Coordination and feedback mechanism for promoting LOCAL urban forms. This is themost innovative activity supported by the project and requires extensive efforts to analyzecritical issues, consult with key national and local stakeholders, and reach consensus on policydirections and specific improvements of urban statutory planning standards and regulations. Anannual national conference on LOCAL urban forms will be organized with participating citiesand the NAC to review the progress on pilots and share empirical evidence and analytical results.This will continuously increase the knowledge base for national decision making, while alsoencouraging more cities to pursue the development of LOCAL urban forms.
10. Output-based cost-sharing sub-grants for bioclimatic and cost-optimal green buildingdemonstration: Through a screening process in which several dozens of candidate projects wereevaluated against several selection criteria, Ningbo Municipal Government identified two greenbuilding demonstration projects for GEF support under Component 2 - one retrofit and one newconstruction. Both projects were proposed by Ningbo University. The Bank team reviewed thedocument provided by NHURDC and concurred with its selection of the two demonstrationprojects proposed by Ningbo University. Due to the innovativeness and complexity of designingand constructing state-of-the-art green buildings, it is determined that a sub-grant mechanism isappropriate for GEF support for the demonstrations. The sub-grant from Ningbo MunicipalGovernment to Ningbo University will be disbursed at three crucial points of the nationalcertification process for the proposed green buildings, i.e., obtaining the designated greenbuilding design certification, obtaining the construction completion certification, and obtainingthe designated green building operation certification. GEF funds will be used to cost-share up toUS$1.4 million, but not exceeding 50 percent of the incremental costs of the design andconstruction of two green buildings on the campus of Ningbo University. Ningbo MunicipalGovernment will enter into a sub-grant agreement with Ningbo University that lays out theeligible technologies, activities, expenditure, performance indicators and disbursementarrangement, all of which have been agreed at appraisal. Details of the disbursed requirementsare described in the disbursement section below.
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Financial Management, Disbursements and Procurement
Financial Management
11. Overall, the residual financial management risk after mitigation measure for the project isassessed as Moderate.
12. FM Manuals (FMMs) were prepared and adopted by the four PMOs, respectively, and willbe distributed to all relevant financial staff before project start. All project financial staff will betrained before and during project implementation.
13. The FM risk, both pre and post-mitigation, have been assessed as "Moderate".
14. Budgeting: The annual project implementation plan will be prepared by the PMOs.Budget variance analysis will be conducted on semi-annual basis by the PMOs and necessaryactions will be taken to make sure project could be implemented as planned.
15. Funds Flow: The GEF grant proceeds will flow from the Bank into project designatedaccounts (DAs) to be set up at and managed by MOF, BFB and NFB. MOF, BFB and NFB willbe directly responsible for the management, maintenance and reconciliation of the DAsactivities. Supporting documents required for Bank disbursements will be prepared andsubmitted by the PMOs to MOF, BFB and NFB for review and disbursement processing.
16. Accounting and Financial Reporting: The administration, accounting and reporting ofthe project will be set up in accordance with Circular #13: "Accounting Regulations for WorldBank Financed Projects" issued in January 2000 by MOF. The standard set of project financialstatements has been agreed between the Bank and MOF.
17. The PMOs will be responsible for the project implementation, management, monitoringand coordination for the components that they execute. Original accounting documents forproject activities will be retained by PMOs or the relevant beneficiaries. PMOs will worktogether with MOF, BMFB and NMFB to prepare the project financial statements. Theunaudited semi-annual project interim financial reports (IFRs) (format in accordance with theaforementioned Circular #13 agreed with MOF) will be prepared and furnished to the Bank bythe PMOs no later than 60 days following each semester (the due dates will be August 15th andFebruary 15th), in form and substance satisfactory to the Bank.
18. Internal Control: The related accounting policy, procedures and regulations were issuedby MOF and a FMM was prepared and issued to standardize and regularize the financialmanagement and disbursement requirements related works.
19. Audit: Audit Service Center of China National Audit Office for Foreign Loan andAssistance Projects, Beijing Municipal Audit Office and Ningbo Municipal Audit Office havebeen identified as auditors for the grant. Annual audit reports will be issued by above auditoffices. The Bank currently accepts audit reports issued by China National Audit Office(CNAO) or provincial/regional audit bureaus/offices for which CNAO is ultimately responsible.
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20. The annual audit report of project financial statements will be due to the Bank within 6months after the end of each calendar year. This requirement is stipulated in the loan agreement.The responsible agency and timing is summarized as follows:
Audit Report Submitted by Due dateProject Financial Statements MOHURD PMO June 30 of each calendar yearaudited by Audit Service Centerof CNAOProject Financial Statements BDRC PMO and BMCC June 30 of each calendar yearaudited by Beijing Municipal PMOAudit OfficeProject Financial Statements NMCC PMO June 30 of each calendar yearaudited by Ningbo MunicipalAudit Office
Disbursements
21. Four disbursement methods are available for the project: advance, reimbursement, directpayment and special commitment. Supporting documents required for Bank disbursement underdifferent disbursement methods are documented in the Disbursement Letter issued by the Bank.
22. Three designated accounts (DAs) in US dollar will be opened at a commercial bankacceptable to the Bank and will be maintained by MOF, BFB and NFB subject to the projectactivities implemented by MOHURD, BHURDC, BDRC and NHURDC, respectively.
23. The GEF grant would be disbursed against eligible expenditures (taxes inclusive) as in thefollowing table:
Table: Grant Allocation by Expenditure Category
GEF GrantAllocated Percentage ofAmount Expenditure('000USD) to be financed
(1) Ministry of Housing and Urban-Rural Development(Subcomponents 1A and 2A, Component 4)(a) Consultant services, training, workshops and study 3,600 100%
tours(b) Operating costs 400 100%
(2) Beijing Municipality(a) BHURDC implemented activities
(Subcomponents 1B and 2B)Consultant services, training, workshops and study 2,500 100%tours(b) BDRC implemented activities (Component 3)Goods, consultant services, training, workshops and 2,000 100%
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study tours(3) Ningbo Municipality (Subcomponents IC and 2C,
Component 4)(a) Goods, consultant services, training, workshops and 2,000 100%
study tours(b) Green Building Subproject Grant(s) 1,400 100%
of amountsdisbursed
(c) Operating costs 100 100%Total 12,000
24. It was agreed at appraisal that a retroactive financing for an aggregate amount up toUS$500,000 may be made for payments made after January 1, 2013 for eligible expenditures,which may include consultant services, goods and equipment. The date, types and amount ofeligible expenditures has been confirmed at negotiations, and specified in the grant agreement.All contracts to be financed through retroactive financing will be subject to prior review.
25. Disbursement of Output-based Cost-sharing Sub Grants: The sub grant will be disbursedagainst defined milestone achievements, and based on actual expenditure and agreed costestimates. Details of the disbursement criteria are as follows:
I. Eligible incremental costs for GEF cost-sharing sub grant:(a) The incremental design cost of the two demonstration green buildings as
evidenced by the commenced contract for the competitively selected designfirm;
(b) The incremental construction cost of implemented design estimated by comparingthe actual construction cost with the estimated baseline cost defined below;
(c) Other incremental costs associated with the demonstration projects, such astraining, outreach and dissemination, certification, and etc.
II. Incremental construction cost shall be estimated by comparing the actual cost of theimplemented design with the baseline cost of the same structure which would complywith the current Zhejiang Energy Efficiency Design Standards for Public andCommercial Buildings (DB33-1038-2007). The incremental construction cost shouldbe justified by quantified benefits through life-cycle cost analysis of the design.
III. Limits of GEF incremental cost sharing: (1) up to US$0.7 million, but not exceeding50 percent of the incremental cost of the new green building demonstration, and (2)up to US$0.7 million, but not exceeding 50 percent of the incremental cost of theretrofit green building demonstration. .
IV. Disbursement milestones. The following milestones applies to both the retrofit andnew buildings:
(a) The first disbursement is at the completion and approval of the designs. Tenpercent of the total sub grant may be disbursed. The required documents forthe disbursement include:
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* Sub-grant agreement signed between Ningbo Municipal Government andNingbo University;
* Official approval of the designs;* Statement of Expenditures (SOE) to apply the withdrawal amount and to
report actual expenditures (equal to, or more than 10% of sub-grantamount) for identified incremental design, construction anddemonstration costs;
* National certification of green building designs: "Three Stars" for the newconstruction and "Two Stars" for the retrofit; and
* NHURDC's recommendation letter based on review of evidence.
(b) The second disbursement is after the completion of the construction. Up toseventy percent of the total sub grant may be disbursed. The requireddocuments for the disbursement include:* Official construction completion inspection report, including necessary
construction supervision records indicating the installation of keycomponents, such as thermal insulation, windows, and HVAC systems,indicating that the construction has been completed per design and withfull compliance of government regulations, including building energyefficiency standards;
* SOE to apply withdrawal amount and to report cumulative actualexpenditures (more than twice of cumulative disbursed and appliedamount) for identified incremental design, construction anddemonstration costs; and
* NHURDC's recommendation letter based on review of evidence.
(c) The final disbursement is after the buildings obtains the operation certificationof the national green building rating system, which is issued after one year ofoperation of the buildings. The remaining 20 percent of the total sub grantmay be disbursed. The required documents for the disbursement include:* Operation certification of green building: "Three Stars" for the new
construction and "Two Stars" for the retrofit;* SOE to apply withdrawal amount and finally report of cumulative actual
expenditures (equal to, or more than twice of sub-grant amount) foridentified incremental design, construction and demonstration costs; and
* NHURDC's recommendation letter based on review of evidence.
V. If the demonstration buildings fail to achieve the operational certification of its
designed star levels, the final disbursement will be withheld until identified issues are
satisfactorily addressed and re-certification is obtained.
Procurement
26. Capacity assessment. The procurement capacity assessment identified at appraisal thatthe main risk was that BHURDC lacked Bank procurement experience and several new
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procurement staff were assigned in the other three PMOs. Mitigation measures agreed include:(a) procurement training to be further provided to the four PMOs as needed; and (b) aprocurement agent or an individual procurement expert with experience in World Bankprocurement procedures shall be recruited by the four PMOs before project negotiations. Afterthe project pre-appraisal, full procurement staff complement for the four PMOs has beenassigned and is in place. Procurement training with emphasis on selection and employment ofconsultants has been provided by the Bank PS to the procurement staff of the PMOs. Based onthe above, the overall procurement risk is considered 'Moderate'.
27. Applicable Guidelines. Procurement will be carried out in accordance with the"Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loansand IDA Credits & Grants by World Bank Borrowers" dated January 2011; and "Guidelines:Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants byWorld Bank Borrowers" dated January 2011; and the provisions stipulated in the GrantAgreement. National Competitive Bidding (NCB) shall be carried out in accordance with theLaw on Tendering and Bidding of the People's Republic of China promulgated by Order of thePresident of the People's Republic of China on August 30, 1999 subject to the modificationsstipulated in the Grant Agreement in order to ensure consistency with World Bank ProcurementGuidelines.
28. Procurement arrangements
(a) Goods and non-consulting services procurement. The project will finance theprocurement for the supply and installation of Information Systems such as computers,network equipment and operational software, etc. Office equipment would be procuredtoo. National Model Bidding Documents for Goods issued by the Ministry of Finance inJune 2012 shall be used for all NCB. For some sub-components, non-consulting servicescontracts and direct contracting would be used for the purpose of public awareness onenergy efficiency.
(b) Selection of Consultants. Consulting services will be focused on policy reforms in threeimportant areas on China's sustainable energy agenda: development of LOCAL urbanforms, energy savings in public and commercial buildings, and scaling-up commerciallyviable rooftop solar PV systems in cities, etc. Universities and research institutes may beincluded in shortlists as a source of consultants, provided they possess the relevantqualifications and they are not in a situation of conflict of interest. In such cases, QBS orCQS (for small assignments) would be used, if the shortlist also includes consultingfirms. The single-source selection (SSS) shall be used only in exceptional cases and shallbe specified in the Procurement Plan (PP). A sufficiently detailed justification, includingthe rationale for SSS instead of a competitive selection process and the basis forrecommending a particular firm or individual, will be required.
(c) Training and Workshops. Plans for training and workshops will be developed by the fourPMOs, and included in the project annual work plan for World Bank review.Expenditures incurred in accordance with the approved plans for training and workshopswill be the basis for disbursement.
(d) Procurement Plan. A procurement plan for the first 12 months of project implementationhas been prepared by the PMOs and was reviewed by the Bank at appraisal. The
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procurement plan will be agreed with the Bank no later than negotiations and will bemade available in the Project's database and on the World Bank's external website. ThePP will be updated annually or as required to reflect implementation needs andimprovements in institutional capacity.
(e) Frequency of Procurement Supervision. Procurement supervision will be carried out oncea year. Procurement post reviews will be carried out by the World Bank every 12 months.The procurement post review sampling ratio will be 1 out of 10 contracts.
29. Thresholds for Procurement Methods and Prior Review. The procurement methodsand prior-review thresholds are indicated in the table below.
Table: Thresholds for Procurement Methods and Prior Review
Expenditure Category Contract Value Procurement Prior ReviewThreshold (US$) Method Threshold (US$)
1. Goods and Non- >3,000,000 ICB AllConsulting Services
<3,000,000 NCB First 2 contracts foreach PMO andContracts >US$500,000
First contract for eachPMO
<100,000 Shopping
All
None Direct Contracting(Only for very smallvalue contracts forPublic Awareness)
2. Consultants Services >300,000 QCBS/QBS All
<300,000 CQS Contracts identified inProcurement Plan
First contract in eachIndividual consultant sub-component
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Expenditure Category Contract Value Procurement Prior ReviewThreshold (US$) Method Threshold (US$)
All
Single source;election (firm)
AllSole-source selectionindividual)
30. Retroactive financing. The table below lists the contracts to be procured underretroactive financing. All contracts to be financed through retroactive financing will be subject toprior review.
Table: Contracts to be procured under Retroactive Financing
Reference Description Procurement Domestic Review by BankNumber Method Preference (Prior / Post)
(Yes/No)
BHURDC PMO-3 Research on amendingBeijing Building Energy CQS Yes PriorConservation Regulations
BHURDC PMO-4 Investigation and Researchfor revising Beijing'sEnergy Efficient Design CQS Yes PriorStandard for Public andCommercial Buildings
BDRC PMO-2 On-line monitoring systemdesign review and quality Individual Yes Priorcontrol
BDRC PMO-5 Planning and design ofrenewable energy education Individual Yes Priorteaching laboratories
NHURDC PMO-2 National and internationaladvisors on Damuwan pilot Individual No Priorand Ningbo urban formstudy
BDRC PMO-G1 On-line monitoring system NCB No Priorequipment
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Environmental and Social (including safeguards)
31. Social Safeguards: Among the proposed activities of the project, only the Ningbo greenbuilding demonstrations will involve physical investments through the GEF grant, which willshare a part of the incremental cost for two demonstrations. One of the two green buildingdemonstrations is a new office building to be constructed on the campus of Ningbo Universitywith a total floor area of 12,000 square meters; and the other one involves the retrofitting andexpansion of the existing Architecture and Civil Engineering Faculty Building of NingboUniversity with a total floor area of 8,000 square meters. The total land area of the NingboUniversity campus is 80 ha, and was acquired in the 1980's. No new land acquisition is required.Therefore, no Bank social safeguard policies will be triggered for the Project.3
32. Environmental Safeguards: The green building demonstrations in Ningbo will includephysical construction activities which will have potential environmental impacts, i.e. newconstruction of the Science and Technology Service Building and retrofitting of the Architectureand Civil Engineering Faculty Building in Ningbo University.
33. The new construction of the Science and Technology Service Building is located in theexisting campus of Ningbo University. The location is an empty lot which used to be a nurserygarden of the university. The building is to be designed as a "Three Star" national green building,with extensive application of new design concepts and technologies in energy efficiency, waterefficiency, material saving, etc. The retrofitting of the Architecture and Civil EngineeringFaculty Building is to add 1-2 floors to the existing faculty building in the campus, install solarenergy systems, and carry out energy-efficiency retrofitting of the building envelope.
34. Based on field reconnaissance and initial screening, the proposed activities will havelimited adverse environmental impacts, i.e. mainly construction related impacts of noise, dust,solid waste, safety and social disturbance. These impacts are insignificant and can be readilymitigated with proper design and good construction management. According to the WorldBank's Operational Policy 4.01 Environmental Assessment, this project will be classified ascategory B. Environmental assessment (EA) documents shall be prepared following nationalrequirements, as well as the World Bank's OP4.01 Environmental Assessment and theInternational Finance Corporation's Environment, Health and Safety General Guidelines (aChinese version of these policies was provided to the Ningbo PMO during the mission).
35. Environmental Management Plans have been prepared for the new construction and retrofitbuilding respectively, following national requirements and the World Bank's OP4.01Environmental Assessment and the International Finance Corporation's Environment, Health andSafety General Guidelines. These documents adequately addressed the potential environmentalimpacts and include proper management arrangements, mitigation measures and budget supportfor implementation. A set of generic mitigation measures (Environmental Code of Practices -ECOPs) for common construction-related environmental issues during construction has beenincluded in the EMPs. The chance-find procedure of physical cultural resources is also includedin the ECOPs. The ECOPs will be included in the bidding documents/contracts forimplementation.
For the associated IBRD loan financed Beijing Rooftop Solar PV Scale-up Project (P125022) which will invest in large-scaledemonstration of rooftop solar PV systems, potential social safeguard issues are addressed under the IBRD investment project.
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36. Public consultations have been conducted during the EA preparation, and the EMPdocuments have been disclosed locally on the websites of Ningbo Municipal Government andNingbo University, as well as in InfoShop.
Monitoring & Evaluation
37. Annex 1 lists the PDO level results indicators for the project, as well as the intermediateresults indicators for each component. Each PMO will be directly responsible for the monitoring,evaluation and reporting of the activities under its implementation as described above. TheMOHURD PMO will be responsible for the consolidation of the periodic monitoring reports ofits own-implemented activities and those from the respective PMOs of BHURDC, BDRC andNHURDC, including inputs to the semi-annual project progress reports and annual reports oncompliance with performance indicators and covenants. A mid-term review will be conducted atthe end of the second-year implementation to evaluate interim results and ensure correctiveactions are taken as necessary.
38. The PMOs will collect the following information for monitoring key performanceindicators:
(a) LOCAL urban planning and design principles recommended for inclusion in statutoryurban planning standards and regulations;
(b) Energy performance benchmarking and disclosure (EPB&D) program for large publicand commercial buildings developed at the national level and adopted by selectcities;
(c) Number of renewable energy service contracts; and,(d) CO 2 emissions reduction associated with GEF assistance.
39. Responsibilities and methods for monitoring and evaluation of intermediate results aredetailed in Annex 1.
Role of Partners (if applicable)
40. Not applicable.
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Annex 4: Operational Risk Assessment Framework (ORAF)
China: Urban Scale Building Energy Efficiency and Renewable Energy (P130786)
Stakeholder Risk Rating Substantial
Description: Risk Management:
1.Consensus building on how to proceed with the development of low-carbon, adaptive
municipal governments to implement proposed policy and livable urban forms will be crucial for the effectiveness of policy improvements
actions for low-carbon statutory urban planningdupoli supported by the project. The proposed project builds on processes which already began
project period due to potential difficulties in reaching loc and have strong momentum going into the 12th FYP period. There is a strong movement
and national du T potential culties in oca in China to support EE, RE and low-carbon cities, with strong national government
uran nainalnensuh potentialt achivlo-angeson uratun support and broad interest among cities. But the ideas are still mn flux, various models!urban planning practices to achieve l-r ura approaches are being experimented. The proposed project will serve as a consensusdevelopment outcome could be a new test for the building platform to catalyze policy changes at the local and national levels. The Bank
government agencies to collaborate since the ideas team will work closely with partner agencies to ensure an open and inclusive policynew and the impact could be ideran Teytma dialogue and a consensus building process, so that the project design is broadlysignificantly affect the established order and vested consulted and accepted, and that the recommended reform actions receive broad-basedinterests, in particular in urban land sales and subdivision. saeodrspotResentment from potentially negatively affectedstakeholders, such as real estate developers, could be high. Resp: Status: Stage: Recurrent: Due Date: Frequency:This risk is rated substantial before mitigation and Client Not Yet Due Bothmoderate after mitigation. Risk Management:
1.2. Willingness of some key stakeholders to support Extensive consultation with stakeholders is one of the key mitigating measures toactivities under this project, specifically the adoption of address this risk. The GEF support will provide additional technical assistance, such asmandatory BEPB&D due to perceived risk of regulation trainings and awareness campaigns with building owners, operators and other(e.g., public disclosure of building energy performance). stakeholders, during project implementation. Specifically, the disclosure aspect can beThis risk is rated as substantial before mitigation, and managed by allowing different levels of disclosure for different purposes depending on
moderate after mitigation. the local situation
Resp: Status: Stage: Recurrent: Due Date: Frequency:
Client Not Yet Due Implementation
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Capacity Rating Substantial
Description: Risk Management:
The project has four implementing agencies, MOHURD, MOHURD has established a national advisory committee (NAC) for the implementationBHURDC, BDRC and NHURDC. BHURDC is the only of Component 1. The NAC is chaired by a vice minister and consists of representativesone which has no prior experience of implementing Bank from concerned departments of MOHURD, the National Development and Reformproject. This risk is rated as substantial mainly because of Commission, the Ministry of Finance, Beijing and Ningbo Municipal Government. Thethe potential risk associated with the implementation of NAC will convene once a year (or more if necessary) to review progress and provideComponent 1, the success of which requires broad-based guidance. BHURDC has strong ownership of the activities under its implementation:cross-department collaboration within MOHURD and the key results of the proposed activities are closely linked to key policy and regulatorywithin municipal govermment, something not easily done. improvements to be delivered during the 12th FYP. Ningbo established a municipal
level Ningbo Project Steering Group (NPSG) to provide specific guidance on theactivities to be implemented by Ningbo. The Bank team will provide necessary capacitysupport to ensure effective implementation. The implementing agencies will hirequalified experts and strengthen their capacity through training in Bank procurement,financial management, and safeguards. The project will allocate GEF funds forimplementation support.
Resp: Status: Stage: Recurrent: Due Date: Frequency:
Client In Progress Both
Governance Rating Low
Description: Risk Management:
Due to the complex and innovative nature of the project, The project will be coordinated through MOHURD which has national governmentpolitical commitment from MOHURD, Beijing and mandate to supervise all areas of activities supported by the proposed project.Ningbo and coordination among different governent Resp: Status: Stage: Recurrent: Due Date: Frequency:agencies are crucial. However, given that the projectseeks to support the government's own policy agenda, the Client Not Yet Due Bothrisk is low.
Risk Management:
The use of the investment and technical assistance will be discussed and agreed withMOHURD and the municipal governments during the preparation stage. Bank rules will
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be enforced during project implementation. The China National Auditing Office will
conduct annual audits to ensure that funds are used in accordance with the Operations
Manual and legal agreements.
Resp: Status: Stage: Recurrent: Due Date: Frequency:
Both Completed Implementation
Design Rating Substantial
Description: Risk Management:
The key design risks include (1) slower than expected The national advisory committees will be substantially involved in guiding the
consensus building on how to improve policies and consensus building process and provide impetuses for progress. Consultation of
regulations for promoting the development of LOCAL stakeholders will be conducted at city level for the design of the disclosure
urban forms; (2) the introduction of mandatory EPB&D requirements, which may involve several options with different degree of disclosure.
for large public and commercial buildings may encounter Government policy under consultation indicates greater support for incorporating
significant resistance, especially on disclosure distributed solar PV systems into the grid. These measures or new sector policy
requirements; (3) Beijing Grid Company may not be developments will help mitigate the key design risks of the project.
willing to carry out two-way metering pilot at a scale Resp: Status: Stage: Recurrent: Due Date: Frequency:which can provide meaningful results.
Client In Progress Both
Overall, this risk is rated as substantial prior to mitigation,due to the innovative nature of the project and the
involvement of a large number of stakeholders, but as
moderate after mitigation. A mid-term review will be
conducted to assess the need to adjust the design of the
project
Social and Environmental Rating Low
Description: Risk Management:
The proposed project will have limited environmental Environmental:
impacts, which are associated with the demonstration Given the limited and well-known potential adverse impacts, the Bank team will ensure
projects in the proposed Ningbo component, which that the design of the EMP incorporates generic environmental specifications to guide
includes installation of ground-source heat pump systems, the installation of ground-source heat pump systems, building retrofit, and new building
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building retrofit, and construction of a new building. Such construction. Sufficient training and guidance will be provided to the PMO and the EIAimpacts are low given the application of adequate consultant throughout the project preparation and implementation stages.construction and operation management specifications. Resp: Status: Stage: Recurrent: Due Date: Frequency:
Social: Both In Progress Both 30-Jun-2012
No Bank social safeguard policies will be triggered by theproposed physical constructions.
Program and Donor Rating Low
Description: Risk Management:
The proposed project is not critically dependent on otherprojects/activities or other development partners in the Resp: Status: Stage: Recurrent: Due Date: Frequency:same general policy support areas, i.e., urban spatialplanning, building energy efficiency and grid-connected []rooftop solar PV systems. There are no anticipated risks inthis regard.
Delivery Monitoring and Sustainability Rating Moderate
Description: Risk Management:
MOHURD, Beijing and Ningbo are strong supporters in The GEF support will help build the capacity of implementing agencies and developdeveloping policies and tools to support RE and EE in detailed actions that will also be included in the project implementation plan.Urban areas. The project design and GEF support toUrbn res.Th prjet esgnandGE spprtto Resp: Status: Stage: Recurrent: Due Date: Frequency:develop policies and implementation mechanisms willensure project sustainability. Therefore, the risk is rated as Client Bothmoderate.
Implementation Risk Rating: Substantial
Comments:
The implementation risk is rated as substantial prior to mitigation, due to the innovative nature and complexity of the project and the involvement ofa large number of stakeholders, especially with regards to activities supporting low-carbon statutory urban planning and disclosure of buildingenergy performance data.
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Annex 5: Implementation Support Plan
Strategy and Approach for Implementation Support
1. The project is expected to require extensive supervision by the Bank team because of thebroad scope and complexity of the activities, especially in the first 2-3 years. The strategy forimplementation support has been developed based on the nature and risk profile of the proposedproject. It will aim at making implementation support to the client more flexible and efficient,and will focus on the implementation of risk mitigation measures defined in the ORAF.
2. Technical Support. Technical experts (consultants) were involved during projectpreparation and will continue to provide extensive technical support to the four PMOs toeffectively monitor and implement the project activities according to the implementation plan.
3. Procurement: Procurement implementation support would include: (a) providing trainingto relevant PMO staff and Procurement Officers who will be involved in the procurementprocess; (b) reviewing procurement documents and providing timely feedback to the PMOs; (c)providing detailed guidance on Bank's procurement guidelines to the PMOs; and (d) monitoringprocurement progress against the detailed procurement plan developed by the PMOs.
4. Financial Management. Project financial management will be reviewed and evaluated ona regular basis by the Bank's financial management specialist. S/he will join supervisionmissions and review the implementation of the Financial Management Manual. S/he will alsoprovide technical support to the project implementing agency and help with timely resolution ofpotential financial management issues or any issues identified by the auditors. The review andmonitoring will include the evaluation of the adequacy of the financial managementarrangements in place, disbursement processes, on-lending arrangements, counterpart fundallocations, and document filing systems.
5. Environmental and Social Safeguards. The Bank project's environmental and socialdevelopment experts will provide guidance to the Ningbo PMO on how best to address relevantissues that may arise during project implementation.
Implementation Support Plan
6. The Task Team Leader will be based in Washington and will be assisted by twointernational staff (one Consultant in LOCAL Urban Forms and one Specialist on BuildingBenchmarking) to supervise the Project. The Task Team Leader will maintain regular contactwith key officials of MOHURD, Beijing and Ningbo to exchange views on strategic issues ofproject implementation and address any critical issues. Staffing and resources will be reviewedfrom time to time as is standard Bank practice.
7. Formal supervision and field visits covering all aspects of project implementation will becarried out semi-annually during the early stages of project implementation, complemented byoccasional visits by small missions on an as-needed basis.
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8. The following table indicates the focus areas and skill needs required to provideimplementation support during the initial and subsequent periods of the project.
Focus Staff Position and Resource Estimate (in staff weeks)YR1 YR2 YR3 YR4 YR5
Team leadership. Task Team Leader 6 5 5 4 4
Technical support 1. One Consultant in 5 4 4 3 2LOCAL Urban Forms
Technical support 2. One Specialist on 4 3 3 2 2Building Benchmarking
Procurement: (a) review Procurement Specialist 3 3 3 3 2of procurementdocuments; and (b)delivery of training.
FM training and FM Specialist 1 1 1 1 1supervision.
Safeguards supervision. Environment Specialist 1 1 1 1 1
9. The travel requirements are summarized below:
Skills Needed Number of Trips Comments(per Fiscal Year)
Task Team Leader. Two. International staff(Washington based).
Technical support 1 and 2. One. International staff.Contribution mostly in theform of desk reviews.
Procurement Specialist. Field trips as required. Country office based.
FM Specialist. Field trips as required. Country office based.
Environment Specialist. Field trips as required. International staff.
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Annex 6: Incremental Cost Analysis
Key barriers to scaling up EE and RE deployment in cities
1. China has made impressive progress in promoting EE and RE deployment in the urbanbuilt environment, especially during the 11h FYP period, but many challenges remain. TheComprehensive Work Program for Energy Savings and Emissions Reduction in the 12th FYPPeriod issued by the State Council identified several key actions for the building sector,including comprehensive promotion of building EE through planning, regulations, standards,technologies and designs; development and implementation of a green building action plan;strengthening the energy monitoring and management system for public and commercialbuildings; improving energy audit and energy disclosure to support building energy retrofit andoperational management; and promotion of RE and building integration. Many of these issuesare being addressed by the government. The Chinese national and city counterparts haveidentified four key problems as having broad and long-term impact on EE and RE deployment incities and that international experiences and knowledge transfer would substantially strengthennational and local efforts to address them:
(a) Prevailing urban spatial planning regulations are not conducive to the development ofLOCAL urban forms and have few levers for EE and RE deployment. In fact, some of thenational urban planning rules for the planning and design of city streets and blocksimpede efficient use of urban land and urban mobility and have long-term negativeeffects on the overall EE of cities (Annex 7). Government efforts for promoting EE andRE in cities so far have primarily focused on individual buildings, missing importantopportunities to address these issues at urban scale through the statutory urban planningprocess.
(b) Little is known or disclosed about the energy performance of existing public andcommercial buildings, impeding informed decision-making on EE retrofit and energymanagement for this fast growing building segment. EE retrofit in public andcommercial buildings is anemic and significant difficulties exist in incentivizing andmobilizing financing. The well-known barriers (e.g., split incentives and high transactioncosts) notwithstanding, the dearth of investments is in no small part due to the lack ofbasic building energy performance data and the absence of market valuation of buildingEE in real estate transactions. Efforts to increase knowledge of the building EE marketand improve market transparency are sorely needed;
(c) Scaling-up of green buildings in cities is constrained by a lack of effective policyinstruments, scarce empirical information about their tangible values, and oftenmisguided design practices (e.g., showcasing technologies instead of optimizingarchitecture designs to adapt to local climatic conditions and customs). There areemerging experiences and lessons that need to be evaluated to support greater scale-upefforts in cities like Beijing where the green building program is more advanced thanmost other cities in China. There is also much need for knowledge transfer and goodpractice demonstration in cities like Ningbo where the green building program is
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fledgling and guidance on optimizing designs to adapt to local climatic conditions areimportant; and
(d) Scaling-up rooftop solar PV deployment in cities is constrained by the lack of experiencein incorporating distributed power generation into local grids, tried-and-proven businessmodels for market agregation, and city-level capacity to support market development.While the costs of solar PV systems have declined significantly in recent years, strongmarket development support is needed to overcome project development and financingbarriers. The recent circular from the State Grid on supporting grid-connected,distributed solar PV systems provides an impetus for scaling up rooftop solar PV systemsin cities. But local grid companies in general have no experience in handling such small,intermittent and distributed power sources. Large scale deployment of rooftop solar PVsystems also needs commercially viable business models.
Baseline project
2. Coordinated through MOHURD, the central government and selected cities have initiatedpolicies and programs to address the above challenges. During the 12th FYP period, besidescontinued efforts to ensure compliance of BECs in new buildings and scale up of residentialbuilding retrofit in cold climate cities, MOHURD and participating cities will (i) strengthensupervision and management of energy use and promote EE retrofit in public and commercialbuildings by supporting energy data collection, energy audits, and information disclosure; (ii)scale up RE deployment in buildings; and (iii) promote large scale green buildings developmentthrough demonstration at community/district level (compared with individual buildings). Theseintensified and expanded efforts and programs will help address some but not all aspects of thethree issue areas identified above.
3. Beijing will implement a large-scale demonstration project of rooftop solar PV systemsco-financed by an IBRD loan, totaling 100 MW distributed among about 1000 schools anduniversities. An energy service company (ESCO) will invest, operate and maintain the PVsystems through long-term solar power purchase agreements, demonstrating a potentially viablebusiness model for scaling up rooftop PV installations in Chinese cities.
4. Ningbo is a national pilot city for RE deployment in buildings and has initiateddemonstration of optimal aggregation of EE and RE technologies in new and retrofitted publicand commercial buildings where substantial potential for carbon emission reduction exist. Thecity is contemplating making RE supplies in large commercial buildings a default option whenapproving construction permit.
5. With the baseline project, Chinese cities, Beijing and Ningbo in particular, are expectedto continue to make inroads in scaling up EE and RE deployment in the urban built environment.But the progress is expected to be tempered by limited knowledge and experience in thepreviously identified issues and a lack of focused assistance to help overcome initial hurdles inpolicy/program design and implementation. Specifically,
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a) Improvements in statutory urban planning is unlikely to be initiated in the next five years,missing an important window of opportunity to accelerate the development of low-emission built environment;
b) EE retrofit in the large stock of public and commercial buildings built between 1995 and2006 (which do not comply with the current building energy code and will be in servicefor the next 30 years) will be especially challenging and likely to be sporadic. So far,public and commercial buildings which have undergone comprehensive EE retrofit arenegligible compared with the 1995-2006 stock. The baseline scenario assumes that up to1% will be retrofitted by 2015; and
c) Large-scale replication of rooftop solar PV deployment such as that in Beijing is unlikelyto take place in the next five years, undermining the government's ambitious plan toexpand urban deployment of solar PV systems. A tripling of rooftop PV installation inurban areas is unlikely to be achieved. More importantly, continued expansion,maintenance and operation of rooftop PV systems are unlikely to be sustained without theuse of market-based business models and incorporation of the distributed systems intolocal grid. The total installation of rooftop PV systems is estimated at about 1 GW in2010, the baseline scenario is to reach 1.6 GW in 2015 (10% annual growth).
6. In summary, the baseline project would produce limited impact on a national scale due toinadequate replication support. As a result the associated global environment benefit will also belimited. The total lifetime avoided CO 2 emissions of the baseline project is estimated at about 20million metric tons (see table below).
Baseline scenario summary1. Rooftop solar PV market developmentEffective insolation hours assumed 1100 hrs/yr (Beijing data)CO 2 emission factor (average of national grid) 1.003 t-C0 2/MWhPV system lifetime 20 yearsBaseline scenario: 2010 - 2015 rooftop PV capacity addition 0.6 GWEstimated total lifetime avoided CO 2 emissions of 0.6 GW PV 13 million ton-CO 22. EE retrofit of public and commercial buildingsStock built between 1996 and 2006 (national statistics) 3.4 billion m2
Potential annual energy savings by comprehensive EE retrofit 9 kgce/m2 (Shanghai data)CO 2 emission factor (coal-combustion) 2.77 t-CO 2/tceEE measure lifetime 15 yearsBaseline scenario: retrofit of 0.5% of the 1996-2006 vintage buildings 17 million m2
Estimated total lifetime avoided CO 2 emissions of retrofitted buildings 7 million ton-CO23. Development and implementation of enabling policies and regulationsPro LOCAL urban form statutory urban planning - no pilots
- no national guidelineMandatory energy benchmarking and disclosure in large public and - no pilotscommercial buildings - no implementationReplication of large-scale rooftop solar PV deployment - only
- no replication
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GEF alternative
7. The proposed project (GEF alternative) will forge concentrated efforts in pilot cities,augmented at national level, to address the aforementioned key barriers. The combination offinancial and technical assistance to MoHURD and the municipalities of Beijing and Ningbo willsupport city-based and nationally replicable initiatives in introduction of changes and revisions instatutory urban planning to promote the development of low-carbon, adaptive and livable(LOCAL) urban forms, adoption of mandatory building energy benchmarking and disclosure,and market development assistance for commercially viable rooftop solar PV deployment.
8. Incremental benefits of the proposed project: The proposed GEF activities as describedin the main text and in Annex 2 are envisioned to complement and augment on-going nationaland local government programs by focusing support on policy areas, technical aspects, andmarket segments where the impact will be large and cross-cutting, the results will be highlyreplicable and; government commitment and private-sector interest are strong.
9. The GEF supported activity to improve the statutory urban planning will be particularlyimportant to guide the general direction of low-carbon urbanization and in the long-term,stabilizing and reducing the carbon footprint of cities, especially in managing the overall carbonemissions from the urban built environment. The existing and on-going low-carbon pilots anddemonstrations have primarily focused on demonstrating the technical approaches and potential,instead of the regulatory process and specific requirements in statutory urban planning practices,including urban master plans and subsequent detailed control plans and site plans.
10. The GEF support to introduce mandatory building energy performance benchmarkingand disclosure will catalyze market development for building retrofit by introducing atransparent and consistent system of data recording, evaluation and sharing, which is critical tomarket participation in and valuation of EE improvements. The GEF support will build on theon-going national and local government efforts to establish a monitoring and reporting networkof large public and commercial buildings. Availability of systematic building energy benchmarkdata will also inform long-term planning to enable more effective control of the overall carbonfootprint of the built environment.
11. The GEF support to promote commercially viable approach to scaling up rooftop solarPV deployment will strengthen the implementation of the large demonstration in Beijing andsupport sharing of experience and knowledge with other cities, thus expanding and acceleratingthe replication process.
12. In the near term, the proposed activities will support the realization of the 12th FYPenergy savings and carbon emission reduction targets for the building sector nationally and inBeijing and Ningbo. In the longer term, they will help achieve transformational scaling up of EEand RE deployment in the urban built environment. The global environment benefit is expectedto be substantial. Specifically, the proposed GEF project is likely to deliver the following globalenvironment benefits:
(1) With greater replications made possible by GEF support, assuming 20 MW of installedsolar PV capacity per city in 20 additional large and medium cities in northern China, the
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global environment benefit is estimated at about 22 million metric tons of avoidedlifetime CO 2 emissions; and
(2) With additional comprehensive EE retrofit catalyzed by GEF support, assuming that 1%of the 1996-2006 stock of public/commercial buildings will be retrofitted, the globalbenefit is estimated at about 13 million metric tons of avoided lifetime CO 2 emissions.
13. In summary, the GEF project would deliver about 35 million metric tons of lifetimeavoided CO 2 emissions (see table below). The additional global environment benefit leveragedby the GEF project is about 15 million metric tons of lifetime avoided CO 2 emissions, comparedwith the baseline scenario (GEF project 35 mt vs. Baseline project 20 mt). The undiscountedunit cost of the additional avoided CO 2 emissions to GEF (for the total grant of $12 million) isabout US$0.8/ton-CO 2.
GEF alternative summary1. Rooftop solar PV market developmentEffective insolation hours assumed 1100 hrs/yr (Beijing data)CO 2 emission factor (average of national grid) 1.003 t-C0 2/MWhPV system lifetime 20 yearsAlternative scenario: 2010-2015 rooftop PV capacity addition 1 GWEstimated total lifetime avoided CO 2 emissions of 1 GW PV 22 million ton-CO 22. EE retrofit of public and commercial buildingsStock built between 1996 and 2006 (national statistics) 3.4 billion m2
Potential annual energy savings by comprehensive EE retrofit 9 kgce/m2(Shanghai data)CO 2 emission factor (coal-combustion) 2.77 t-CO 2/tceEE measure lifetime 15 yearsAlternative scenario: retrofit of 2% of the 1996-2006 vintage buildings 34 million m2
Estimated total lifetime avoided CO 2 emissions of retrofit 13 million ton-CO 23. Development and implementation of enabling policies and regulationsPro LOCAL urban form statutory urban planning - piloted & national
guideline introducedMandatory energy performance benchmarking and disclosure in large - piloted & implemented inpublic and commercial buildings Beijing, Ningbo and
additional citiesReplication of large-scale rooftop solar PV systems - enabled through successful
demonstration in Beijing,
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Annex 7: Promoting Low-Carbon, Adaptive and Livable Urban Forms in Chinese Cities
Introduction
1. Well-planned cities that apply regulatory approaches to distribute, size and scale streets,neighborhoods, buildings, activities, services, and infrastructures in a balanced manner are bestplaced to make efficient use of space and energy, and thus contribute to a green economy. Theycan harness the advantages of concentrated population in metro areas to reduce the dependencyon transportation, and provide basic services with greater efficiency. Planning for compact,dense, well-connected and mixed-use urban development patterns that include parks and publicspaces of several scales can radically reduce commuting distances and energy consumption incities, while also contributing to climate stabilization and biodiversity. Such urban developmentpatterns create low-carbon, adaptive and livable (LOCAL) urban forms.
2. During the identification mission, discussions with the Ministry of Housing and Urban-Rural Development (MOHURD), Chinese Society for Urban Studies, China Academy of UrbanPlanning and Design, and Beijing Municipal Institute of City Planning and Design revealed sixmain barriers to the development of LOCAL urban forms associated with China's existing urbanspatial planning regulations. These statutory barriers and the prevailing policies and practices inmunicipal finance, urban infrastructure investment, and urban land use conversion have in thelast 30 years led to the development of an oversized, pedestrian unfriendly urban form in manyChinese cities, with underdeveloped street networks responsible for congestions even with a stillmuch lower rate of motorization than in the US or Europe.
3. Urban planners have at their disposal essentially three types of tools to help shape asustainable urban spatial structure: i) land use regulations, part of which will be a zoning plan; ii)infrastructure investments; and iii) property taxes. The impacts of these tools are mostly indirect.For this reason, spatial indicators must be constantly monitored to verify that the city is evolvingin a spatial direction that is consistent with LOCAL objectives. Urban planning is not an exactscience but advances by a process of trial and error. Monitoring the constantly evolving spatialorganization of cities is therefore of utmost importance.
What is a LOCAL urban form and what is the situation of China?
4. China needs to achieve a low carbon urban development in order to pursue a resource-efficient and environmentally-sound urbanization process. The importance of urban form inrelation to energy efficiency (EE) is evident in two ways. First, the breakdown of CO 2 emissionsin a city is directly linked to its urban form. For example, in Paris this breakdown is 25% forbuildings, 28% for transportation of people, 28% for transportation of goods, and 19% forconsumption and waste. Second, international research has shown that optimizing the geometryand topology of the urban form has the potential to halve the energy needs, making theintegration of renewable energy (RE) feasible. From the previous breakdown we can start todescribe more precisely the available levers to improve EE.
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Street patterns and transportation energy use
5. During the past century, automobiles have raised per capita consumption of both energyand space, thereby altering the form of 21st century communities more than any other singlevariable. Yet over the past few decades, it has been shown that with appropriate subsidization oftransit and incentives for pedestrian and bike paths, people may change their mobility choices.People have been voluntarily selecting travel modes that are much less energy intensive and lesspolluting than a single-occupied vehicle.
6. Optimized sizing and scaling of street patterns that meet the needs of all users, bothmotorized and non-motorized, can catalyze a modal and efficiency shift. The planning ofcomplex and connected street patterns and streetscapes with a well articulated scale hierarchymust be part of a sustainable transport future. Policies promoting city densification of streetpatterns can reduce demand for motorized transport. Together with integrated transport planningand demand management, low-carbon fuels and greater electrification of transport, well-balancedstreet patterns are also needed to meet short- and long-term economic and sustainability targets.
7. International research has shown that transportation energy use depends on density.Recent data analysis on 35 cities indicated the mathematical inverse power law linking energytransportation and density: E = k/D 1 /3 . A compact city thus reduces the amount of transportationenergy. But to make the city pedestrian friendly and adapted to transit-oriented development(TOD), density is not enough.
8. The sizing, scaling and hierarchy of the street system are crucial. The sizing of the streetmesh will determine the average size of the urban block and inside the block the sizing andintensity of urban subdivisions. The scaling of the street system is a more abstract concept. Itmeans that a well-developed street system will have streets of different lengths and width: a fewwide boulevards will ensure long range connections, a higher number of shorter main streets willconnect these wide boulevards, an even higher number of secondary streets will interconnect themain streets and the boulevards as well. There will be 5 to 6 (even more in historical cities)different types of streets of different widths all interconnected down to a dense mesh of smallpedestrian lanes.
9. This "scale free complexity" (meaning the network remains complex and presentsconnectedness when we zoom in) ensures the fluidity of the traffic as well as the resilience of thenetwork. The hierarchy of the street system means two distinct things: one that there are streetsat different levels of hierarchical depth in the network which is a positive attribute; the other thatthere is a "constrained hierarchy" like in highway traffic, where one cannot connect sub levels inthe hierarchy without ascending to and descending from higher levels, this is a negative attributefor EE as it makes the journeys much longer and makes sometimes adjacent elementsinaccessible without long detours within the constrained hierarchical network.
10. MOHURD and Beijing Municipal Institute of City Planning and Design have startedthrough international collaborations and comparisons to become aware of the differencesbetween China's and international sustainable practices. However they are still grappling with
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the complexity of urban geometry and topology, and of the inter relationships betweenparameters. Here is a brief summary of the main issues at stake in China.
11. Density. Urban density impacts transportation energy and offers a bonus for leveragingEE/green building innovations by developers and optimizing site plans to facilitate on-site REdeployment.
12. As noted by the World Energy Council, international research has identified some sizeand density thresholds that provide useful guidance for urban planning. The importance of theseurban size/density thresholds extends to other structures. These include, on the one hand,specialized urban infrastructures like underground transport networks, which are, as a rule,economically infeasible with fewer than 1 million potential users. They also include, on theother hand, public transport and energy networks (e.g., cogeneration-based district heating andcooling), whose feasibility, both for decentralized and distributed "meso"-grids, is framed by arobust density threshold of between 50-150 inhabitants/ha (5,000-15,000 people per kM2 ). It
needs to be emphasized that such density levels of 50-150 inhabitants/ha certainly do not implythe need for high-rise buildings, since these density levels can be reached by compact buildingstructures and designs, traditional as well as new, including town- or terraced houses, which stillallow for public, open, green spaces.
13. Although the studies on urban transportation energy are based on demographic density,built density is a good approach to density and is used all over the world under the name of FAR- Floor Area Ratio - as one of the main tools of statutory urban spatial planning. However theconcept of density is often not fully understood. Density is a ratio (it is the surface of built floorspace divided by the surface of the site). If the rule puts the building footprint as denominator,"density" becomes the height but it has lost all its meaning.
14. To understand urban density, the denominator must be specified: it may be the blocksurface or, even better, the site surface including infrastructures: the more one enlarges thecalculation site, the more the density drops. This explains a paradoxical situation in China wherehigh-rise buildings come with a low urban density. To summarize some results and internationalcomparisons, a continuous medium-rise urban fabric (5 to 7 floor high) like in Europe or likemost of Manhattan offers urban built densities between 3 and 5 (surface of floor space/surface ofsite including infrastructures) on a scale of observation of 800 m*800 m. Even the urbandistricts of Hong Kong SAR, China reaches only these figures and goes only to 6 in some placesat this scale of observation. On the contrary, China's high-rise developments present a lowdensity between 1 and 2 (often around 1.5) at this 800 m side scale of observation. The apparentparadox is that with 30 to 45 floor buildings high-rise Chinese developments achieve only theaverage density of European small traditional villages.
15. In European continuous urban fabric the building footprint is 65% while in discontinuoushigh-rise Chinese urban developments the building footprint maybe as low as 5%. In this casebuildings have to be 280 m tall to reach the same urban density as 7-floor-height Paris historicalfabric. There are regulatory reasons that explain why too much urban land is left empty and thuswhy the urban density is low in Chinese cities.
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16. Street mesh sizing and block sizing. According to Beijing Municipal Institute of CityPlanning and Design, their "main conflict" when they discuss with international specialists ofsustainable urban planning is the size of the urban block, which is 4 times larger (side of 400 minstead of 100 m) in China than what corresponds to sustainable EE urban design. A 400 m sideurban block size locks Chinese cities into automobile dependence and prevents any plotsubdivision inside the block.
17. There are a certain number of thresholds in block sizing and street mesh sizing thatdifferentiate pedestrian cities, TOD cities, and car-dependent cities. Japanese cities with anaverage distance between intersections of 50 m (even in modern Tokyo) are highly pedestriancities with a high level of functional mix of uses and a micro scale distribution of activities andamenities into the urban fabric which ensures a high level of short-range accessibility of manyamenities; almost everywhere in Tokyo you can find everything you need (including but notrestricted to public transportation) at a less than 300 m distance.
18. European XIXth century cities as well as the historical core of American cities and someAsian cities like Hong Kong SAR, China present average distances between intersections from100 to 150 m. This is the TOD sizing. Manhattan for example with urban blocks of 80m*160mpresents an average distance between intersections of 120 m, identical to the hyper centre ofhistorical Paris. Manhattan on the NS direction presents an average distance betweenintersections identical to an European Medieval city and in the EW direction an average distancebetween intersections of 160 m a little bit higher than most European XIXth century cities; thatmakes Manhattan a most walkable city rooted both in the best of European history and adaptedto the XXIst century.
19. On the contrary Chinese cities with a 400 m size block (like in Brasilia) are cardependent. This effect is reinforced by the relative emptiness in many newly built urban areas,and the oversized buildings resulting from an absence of plot subdivisions in the block. Therelationships between plot subdivisions and block size are fundamental for EE. In Europe andAmerican historical cores: several dozens of plot subdivisions in urban blocks of iha(1 00m* 1 00m) ensure diversity and "fine grain" to a walkable urban texture, while in China thereis no plot subdivision at all in 16 ha urban blocks, leading to oversized buildings and adiscontinuous city.
20. Interestingly, with some first sampling in 3 different Chinese cities, Beijing MunicipalInstitute of City Planning and Design has noticed that big buildings use 2 times more energy / m2
in China than smaller buildings. This issue of the energy intensity according to the size of thebuildings needs to be investigated in more detail as some data presented by MOHURD suggesteda linear relation between size and consumption and not an increase in intensity.
21. Street system scaling. Scaling as defined above allows significant increase in the lengthof streets in a given area without increasing the surface of infrastructures. This is an effect of the"fractal structure" of a "scale free" network such as the lungs or blood circulatory system of ourbody. International scientific research has shown that scaling networks are the most efficient interms of energy (they maximize the rate of exergy, that is useful energy) and they dissipate
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fluctuating flows (for example of cars in streets) in the most efficient way and the most resilientway if they present interconnections at all scales.
22. Some indicators of scaling can be calculated and it is easy to demonstrate that Paris forexample presents efficient scaling street patterns contrary to Chinese contemporarydevelopments, which present only oversized streets and not streets of several types and widthdistributed according to an inverse power law. An indicator of the non-scaling quality of Beijingstreet system is its weak linear density compared to other world cities. Beijing MunicipalInstitute of City Planning and Design has observed that the linear density of streets in variouscities is the following:
- Beijing: 3.3 km/km2
- Tokyo: 8.4 km/km2
- London: 9.7km/km 2
- Paris: 8.9km/km2
- New York: 8.6 km/km2
- Moscow: 7.5 km/km2
23. According to Beijing Municipal Institute of City Planning and Design the weak lineardensity of streets in Beijing is a main cause of traffic jams. As has been already noticed, this isthe consequence of the non-scaling structure of streets in Beijing that can be attributed tostatutory urban planning inherited from the Soviet advisors period.
24. Street system hierarchy. Street systems in China present a "constrained" hierarchy thatmakes adjacent urban elements often accessible only after a long detour up and down thedifferent levels of the hierarchy.
Block patterns and energy efficiency
25. The oversized blocks are not optimal in terms of density, as has been seen above. TheChinese regulation imposes 30% green spaces in these blocks.
26. Another important constraining regulation, which impacts strongly on EE in Chinesecities is the rule that obliging real estate development to space the buildings 1.7 times theirheight in order to provide one hour solar access at ground level on the winter solstice. This ruleby itself is responsible for the inefficient building footprint in China.
27. As a result, in order to regain some density, there is a strong tendency to build large-scaledeep and high-rise buildings. This is not EE as deep buildings have a weak ratio of passivevolume (the volume less than 6 m from the faqades, which can be lit and ventilated naturally andwhich benefits from solar gains). In order to be EE, building depth should be around 12 m.International research has shown that global energy needs (heating, cooling, ventilation, lighting)are correlated to the passive volume ratio. The higher this ratio, the lower the global energyneeds. More precisely non-passive volume needs 2 times more energy than passive volume lessthan 6 m from the faqade. In Chinese cities this ratio can be as low as 40% in the centralbusiness districts, compared to over 90% in European traditional fabric. This explains to someextent why big commercial buildings in China have an energy-intensity 2 times higher than smallbuildings.
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Urban spatial planning rules that prevent the development of LOCAL urban forms
28. Several statutory urban planning rules have had significant impact on the Chinese urbanform for the last 30 years. Some of these rules date back to the Soviet advisors period and havenot been changed for the last 20 years.
The sizing of the urban street grid
29. Unchanged for the last 20 years, the sizing of the grid prescribes a main street every 500m and an even bigger street every km. This rule is responsible of three non energy-efficienteffects:
- The oversize of the urban block- The oversize of the street width, which for the big main streets corresponds to 8 to 10
lanes highways with the according high speed and the "constrained hierarchy" typical ofhighways
- The absence of scaling in the street pattern, which results in a linear density of streets 3times lower than in Europe and in NY and 6 times lower than in Japan; this low densityand weak scaling create congestions.
The setback rules
30. These rules should be investigated. In some extreme cases the built front is set back 100to 150 m from the already oversized street width, resulting in distances 300 to 450 m betweenbuildings on opposite sides of the "street". These setback rules prevent reducing the size of theurban block to a more sustainable, more pedestrian and more EE size: if the urban block weresmaller than 400 m after deduction of the setbacks there would be very little land left forbuilding footprint.
The 30% green space into the block itself
31. Although a global target of 30% green space may be desirable, its calculation at the blockscale and the constraint to implement it block by block, prevents any reduction of the block size,as the ground left for buildings would be much reduced if the block size were reduced to 100 m.
The absence of block division in plot subdivisions
32. This rule results from the state ownership of the land and prevents any complexity andfine grain in the clusters of buildings.
The 1.7 times the height spacing between the buildings for solar access
33. This rule has a very strong impact on the form and height of the buildings, as it obliges toleave the land almost empty. The only solution left to increase density is to thicken the buildingsand increase their height with detrimental effects on EE. There are more sophisticatedtechniques like designing the building forms within solar envelopes, which have been used inNY City and San Francisco and which maximize the urban density, the solar access and the solar
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potential for RE. In any case the use of such sophisticated techniques would be prevented by theexisting rule concerning spacing.
Rules preventing functional mix of uses
34. It is necessary to investigate more thoroughly the statutory urban planning rules inspiredfrom zoning theories, which in China may prevent a more fine grain in the mix use of buildings.This is to be compared for example to the Italian statutory urban planning, which obliges all firstfloors of buildings to be devoted to commercial activities, thus encouraging mix of uses withinthe same building, making amenities, shops and restaurants distributed everywhere in the cityfabric, creating a streetscape of activities for pedestrians (and not 300 m long blank faqades) andreducing the need for light penetration at the ground level.
Conclusions
35. One may say that the six Chinese urban spatial planning rules described above lockChinese urban development in a non-LOCAL design pattern of street, block and buildingorganization patterns.
36. These statutory urban planning rules constitute strong barriers to EE and RE in Chinesecities. They prevent any evolution of the size and scaling properties of the street grid in order toachieve TOD and any evolution in the size and composition of the urban block in order toachieve a higher density with less high, less deep, and more continuous urban fabric, allowing ahigher potential for sun penetration and active or passive solar energy utilization.
37. Removing statutory barriers that create a non-LOCAL urban form is a priority.Removing these barriers is necessary to create LOCAL cities in China. Removing these barrierswould allow doubling the density in Chinese cities, thus avoiding a highly land-consumingprocess for the new stage of urbanization; it would avoid sprawl and allow more efficient builtforms needing less energy and having a stronger potential for implementation of solar REtechnologies. Many examples exist in statutory urban planning in particular in Europe that dealwith the previously examined topics in a complete different way than in China and produce amore EE urban form.
38. Optimized design patterns have proved their ability to provide design solutions to EEproblems while keeping open the possibility for urban designers to provide for many solutionsaccording to the social, climatic and cultural context.
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