People’s Republic of China: Guangdong Energy Efficiency and Environment Improvement Investment Program, Tranche 2
sector: Energy | country: China, People’s Republic of
The project completion report (PCR) provided four lessons. First, it noted that a strong government ownership was critical to the successful implementation of the project. It also noted the importance of management handbooks on procurement, financial management, and energy savings measurement and verification that ensured the smooth and sustainable project implementation. Second, effectiveness of the financial intermediary loan modality was supported by independent evaluations of the financial viability of candidate subborrowers and the project’s revolving funding mechanism. Third, actual energy savings achieved were higher than anticipated at appraisal. More accurate methods of estimating energy saving should have been used by (i) establishing an accurate baseline, (ii) designing a customized measurement and verification method to verify energy savings from the outset, and (iii) using the same methodology for pre- and post-project energy saving calculations. Fourth, third-party measurement and verification agencies ensured accurate assessment of energy savings and emissions reduction for the subprojects. This validation agrees with these and has no additional lessons to offer.