30403-013: Coal Mine Methane Development Project

Project Data Sheet (PDS): Details

Description

The main objective of the Project is to establish a CMM demonstration project that covers all aspects of effective and efficient CMM and CBM production, capture, and utilization by applying the latest technologies, i.e., improved CBM production from vertical surface wells and directionally drilled wells from the surface, improved CMM drainage through the use of underground directional drilling and other modern equipment and materials, CMM-based power generation using gas engines, and transmission and distribution of CMM for residential, commercial, and industrial use. In this manner the Project will also contribute to improving mine safety, reduce GHG emissions, and improvement of the environment. Part A of the Project is to demonstrate the more efficient production of CBM, drainage and capture of CMM, and their use for power generation as a least-cost alternative using new technologies; Part B of the Project is to demonstrate the efficient use of CMM on a commercial basis for transmission and distribution to consumers; and Part C of the Project is to provide institutional strengthening to the concerned companies involved in the Project and promote the establishment of similar projects in the PRC.

Project Rationale and Linkage to Country/Regional Strategy

The PRC accounts for about 40 percent of global methane emissions which are, among others, the result of methane gas emissions associated with coal mining activities in the PRC. Methane is a potent greenhouse gas and more efficient drainage of CMM and its use for power generation will help reduce the build-up of greenhouse gases in the atmosphere.

Impact

Reduced green house gas emissions in Shanxi Province

Project Outcome

Description of Outcome

Increased supply and use of CMM and CBM for power generation and residential, commercial and industrial consumers

Implementation Progress

Description of Project Outputs

Increased CMM and CBM production (JMC) New electric power generating capacity and connection to electricity transmission grid (JMC) Expanded CMM transmission network (SECC) Expanded CMM distribution network (JCCUC) Improved conditions for development of projects for CMM and CBM production and use

Status of Operation/Construction or Implementation Progress

Part A- Construction activities and installation of all the equipment and accessories associated with the power plant have been completed. The power plant was connected to the Shanxi power grid on 28 Mar 08 and on 3 Oct 08 passed the trial run tests requirements of the Shanxi Power Company. The Shanxi Provincial Development Reform Commission granted its final approval for completing the project requirements for operations on 9 February 2009 and on 5 July 2009 the power plant was put into commercial operations. JMC had turned over the project facilities to the new company established for the operation of the power plant. Part B- All civil works and equipment installation have been completed for the Zhanglin gas transmission station as of end September 08. Construction work at the 4 gas collection stations (Gaozhuang [main station], Pingshang, Duanshi and Chengzhuang). In Yangcheng Industrial Zone station, all works have been completed. For Yangcheng station however, no material progress has been reported as construction work has to coincide with the construction schedule of Yangcheng Minsheng Gas Company since the station will be at the latter's premises. Equipment for the station was purchased through the ADB loan. Installation cost will be financed from counterpart funds. All pipelaying activities have been completed. Distribution component for the Jincheng city has progressed well. Construction of the 50,000 m3 and the 80,000 m3 storage tanks and distribution stations, including the laying of medium pressure pipelines were completed and accepted in September 08 and on 18 Oct 08, the project was put in operation and began supplying gas to the city. The components for the 3 counties (Gaoping, Yangcheng, and Qinshui) have also progressed and in the final stages of completion. Lingchuan had dropped out of construction and ADB loan utilization due to funding problems, but has since completed its project scope with support from private investors. The Project won the 2009 China Habitat Environment Prize awarded by the Ministry of Housing and Construction and was nominated for the Dubai International Award for best practices to improve the living environment. Part C- Institutional Strengthening: Completed.

Safeguard Categories

Environment: B
Involuntary Resettlement: B
Indigenous Peoples:

Summary of Environmental and Social Aspects

Environmental Aspect

SPG and the Project Implementing Agencies shall ensure that the design construction, and operation of all Project facilities comply with the environmental laws and regulations of the Borrower (whether enacted at national, provincial or municipal level), and with ADB's Environment Policy (2002).

Involuntary Resettlement

SPG and JMC shall ensure that all resettlement, including compensation and entitlements for affected persons, will be implemented in a proper and timely manner in accordance witht the relevant resetllement plan and agreed upon with ADB. Resettlement under the Project shall comply with all applicable laws and regulations and accord with ADB's Involuntary Resettlement Policy (1995). SPG and JMC , through the PMO shall submit semiannual progress reports to ADB on implementation of the resettelment plan

Status of Covenants

Category Rating
Loan 2146
Sector Satisfactory
Social Satisfactory
Financial
Economic Satisfactory
Others Satisfactory
Safeguards Satisfactory
Project Financial Statements

 

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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