Document of The World Bank FOR OFFICIAL USE ONLY Report No: 87873-CN RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF GRANT FOR PREPARATION OF ESTABLISHMENT OF MEASUREMENT AND VERIFICATION SYSTEM FOR ENERGY EFFICIENCY IN CHINA PROJECT GLOBAL ENVIRONMENTAL FACILITY (GEF) PPG GRANT TF013687-CN APPROVED ON October 11, 2012 IN THE AMOUNT OF US$ 200,000 TO THE PEOPLE’S REPUBLIC OF CHINA May 12, 2014 Regional Vice President: Axel van Trotsenburg, EAPVP Country Director: Klaus Rohland, EACCF Sector Manager: Charles Feinstein, EASWE Task Team Leader: Xiaodong Wang, EASCS China and Mongolia Sustainable Development Unit Sustainable Development Department East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. DATA SHEET China Grant for Preparation of Establishing Measurement and Verification System for Energy Efficiency in China (P132748) EAST ASIA AND PACIFIC EASCS Report No: 87873-CN Basic Information Global Environmental Project ID: P132748 Lending Instrument: Facility Grant Regional Vice President: Axel van Trotsenburg Original EA Category: C Country Director: Klaus Rohland Current EA Category: C Sector Director: John A. Roome Original Approval Date: 11-Oct-2012 Sector Manager: Charles Feinstein Current Closing Date: 30-Jun-2014 Team Leader: Xiaodong Wang Borrower: People’s Republic of China Responsible Ministry of Finance Agency: Restructuring Type Form Type: Short Form Decision Authority: Country Director Approval Restructuring Level: Level 2 Explanation of Level II restructuring to extend Approval Authority: the project closing date only. Financing ( as of 30-Oct-2013 ) Key Dates Approval Effectiveness Original Revised Project Ln/Cr/TF Status Signing Date Date Date Closing Date Closing Date P132748 TF-013687 Effective 11-Oct-2012 03-Jan-2013 06-Jan-2013 30-Jun-2014 30-Jun-2015 Disbursements (in Millions) % Cancelle Disburse Undisbur Project Ln/Cr/TF Status Currency Original Revised Disburse d d sed d P132748 TF-013687 Effective USD 0.20 0.20 0.00 0.10 0.10 50 Policy Waivers Does the project depart from the CAS in content or in other significant respects? Yes [ ] No [ X ] Does the project require any policy waiver(s)? Yes [ ] No [ X ] A. Summary of Proposed Changes The request is to extend the project closing date by twelve months, i.e. from June 30, 2014 until June 30, 2015. A request was received from the Ministry of Finance on May 6, 2014. The objective of the Grant is to prepare the Establishing Measurement and Verification System for Energy Efficiency in China Project (the Project). Since the effectiveness of the Grant, the Project preparation has faced delay due to (1) institutional coordination issues between the Ministry of Finance and National Development and Reform Commission; and (2) political uncertainty on energy efficiency trading mechanism. Since December 2013, it has become clear that energy efficiency trading has been listed as a priority in the government’s Third Plenary Session, and would become one of the important policies to help China to achieve the energy intensity target. In addition, the Ministry of Finance (MOF) and National Development and Reform Commission (NDRC) have also reached agreement on institutional coordination on the Project implementation. As the Project has resumed preparation, this request is to extend the Project Preparation Grant period that would allow the on-going preparation to be completed for the Board approval scheduled in March 2015. This is the 1st restructuring for the preparation grant. B. Project Status The Grant implementation is moderately satisfactory. Some of the key activities have been completed, including carrying out survey to assess stakeholders’ needs for improving capacity for the M&V system, customizing supporting plans to the selected third-party verifiers and eligible energy saving certificates trading scheme participants, and reviewing existing practice for energy saving M&V in China (component d). A number of key components have been contracted and are now under implementation. These activities include undertaking project preparation activities (component c), designing detailed activities and preparing the project implementation plan (component b), and an incremental cost analysis and the estimation of global environmental benefits (component a). Approximately US$150,000 has been committed to support the above activities by current closing date (June 30, 2014), with US$100,000 disbursed. The remaining US$50,000 is committed to support the PMO staff salary until the full GEF Project becomes effective. There are no outstanding audits for this project. C. Proposed Changes Financing Change in Loan Closing Date(s): Explanation With the extension of the project closing date, the project management office can maintain its staff to support the Project preparation. Original Closing Current Closing Proposed Closing Previous Closing Ln/Cr/TF Status Date Date Date Date(s) TF-013687 Effective 30-Jun-2014 30-Jun-2014 30-Jun-2015 30-Jun-2014