Supported by an IBRD loan of US$191 million, the project will focus on improving the energy efficiency and environmental performance of heating and gas services in six municipalities and nine cities in Liaoning Province.

Based on national statistics, Liaoning is one of the top centralized heating supply producers in China. However, many parts of its cities, especially small and medium-sized cities, remain supplied by small, distributed coal-fired boilers with low efficiencies and outdated environmental pollution control systems. In addition, central heating supply is largely un-metered, which has an impact on system designs and operating modes. Coal-fired heat-only boilers and combined-heat and power plants provide the majority of the heating services.

The project will finance the construction and rehabilitation of centralized heating systems including new boiler plants, and recovery of waste heat from power generation and steel production; rehabilitation of gas transmission facilities; rehabilitation and capacity expansion of gas storage equipment and gas distribution network. The project will include improved dust and SO2 removal in centralized heating supply, and establish pilot areas for metering and new network design approaches using building-level substations.

Technical assistance will be provided to project management and design review and advisory consultancy services, including training and pilot project assessments; and study of safety and security measures of gas companies.

(China Development Gateway May 28, 2008)