Hebei Clean Heating Project

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The objective of the Hebei Clean Heating Project for China is to improve the efficiency and environmental performance of heating systems in selected areas within participating municipalities/counties of Hebei Province. There are two components to the project, the first component being District Heating Subprojects. The component builds on the Bank’s previous engagement in the DH sector in China and supports the implementation and scale-up of DH best practices that might not be adopted by the project sponsors without Bank support. These include (a) enabling the heating supply system to operate in demand-driven mode with automatic temperature control and variable flow operation. This will allow the system to respond more efficiently to individual customer requirements, saving on pumping and energy costs, compared to traditional supply-driven operating modes, especially in the secondary network; (b) requiring heat metering across the supply chain (at least up to the substation) to enable good network management and gradual implementation of CBB; (c) promoting building-level substations (BLS) to demonstrate energy efficiency and heating quality benefits associated with linking substations to fewer buildings compared to conventional designs and preferences for larger substations; (d) optimizing project design, especially in network investments, and implementation to reduce costs and ensure quality; and (e) promoting the use of waste heat from CHPs and industry. Finally, the second component is the institutional capacity building and project management support. Component two will finance technical assistance, training, workshops, and study tours for the Hebei Project Management Office (HPMO) and the four heating companies, including: (a) project management support to the HPMO and the four heating companies; (b) capacity-building support to the heating companies in DH management, operations and maintenance (O&M), and Bank project implementation procedures; (c) training, workshops, and study tours to exchange and learn good practices in the DH sector; and (d) technical assistance activities tailored to the needs of project’s companies. All these activities will be provided by a management consulting company that will procured under this component.