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ADB Heilongjiang Energy Efficiency District Heating Project - PPP Technical Report and Capacity Training

Asian Development Bank issued a $150 million loan to assist the implementation of the Heilongjiang energy efficient district heating project. The project objective is to support nine subprojects in eight cities and one town in Heilongjiang province to improve their district heating infrastructure and reduce air pollutions from small inefficient, heat-only boilers.

Upon clients’ request, HJI provides a detail marketing analysis report on PPP model. Two teams were formed to carry out the assignments. One team put focus on analyses of current system and conducted following tasks:

a)       Perform a preliminary assessment of current status and challenges of the central heating sector in the People's Republic of China (PRC) and Heilongjiang Province.

b)      Assess heat capacity, heat production, and design concepts; Present the available energy resources, their costs and impacts on the technical solutions.

c)       Review the heating tariff structure and heating tariff adjustment procedures in Heilongjiang Province as well as in each of the project cities. Discuss with relevant government agencies about their plans to reform heating tariff system.

d)      Prepare the heating sector analysis section of the preliminary project assessment report.


The other team mainly worked on finance analysis and performed the tasks as follows:

a)       Conduct a review of financial statements of the clients for the past 3 years to assess: (i) historical financial performance; (ii) heating tariffs; (iii) capital structure; (iv) sufficient generation of internal funds to support sustainability of ongoing operations.

b)      Carry out a preliminary financial analysis of all subprojects and prepare preliminary projected financial statements (balance sheet, income statement, and statement of cash flows) for the next 10 years.

c)       Review and assess the institutional arrangements in current status of private sector participation in the heating sector;

d)      Prepare the financial section of the preliminary project assessment report.