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People’s Republic of China: Gansu Heihe Rural Hydropower Development Investment Program-Erlongshan Hydropower Project

sector: Energy | country: China, People’s Republic of

The project completion report (PCR) identified four lessons, summarized below, which this validation fully endorses. On procurement, strict adherence to bidding processes and the engagement of an experienced procurement agent is a key factor in facilitating efficient process. On counterpart financing, timely availability of all funding is key to smooth project implementation and early project commissioning. On carbon revenue, the project was successfully registered as a clean development mechanism (CDM) project and served as a successful demonstration project for other clean energy developers in the region. On social development, the good practices of the project on social issues paid off in a good relationship with the local community. In addition to the lessons presented by the PCR, this validation provides one additional lesson. The PCR stated that ‘Before the project, few people left their communities in search of jobs. Now most young people do, and over 30% of migrants are female.’ From this statement, it appears that development projects can influence local people in work principles and have a significant benefit on local communities at little cost.

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