The lending modality is Project Finance Facility (PFF). The Project comprises of a series of subprojects, which on an aggregate level will promote energy conservation, reduce waste regeneration and pollutants emission and increase industrial water reutilization in the Jiangxi Province. The PFF modality will allow the preparation of subprojects in a sequencing approach, with benefits from the lessons drawn from previous subprojects in the early phases. NDB will appraise the fitness of the subprojects for fund allocation and will promote lessons learned across the subprojects to benefit the overall Project.

The objective of the Project is to upgrade traditional industries to achieve energy conservation, emissions reduction and better waste management.

The Jiangxi Provincial Industrial and Information Technology Commission will be the Project Implementation Agency, with a fourlevel institutional arrangement put in place for effective management and implementation of the Project. Procurement for the Project will be carried out in accordance with the requirement of China’s national procurement laws and regulations, and the principles of NDB’s procurement policy.

The approved subprojects will contribute to an energy saving level of 95,118 tons of coal equivalent per annum and a carbon emission reduction of 263,476 tons per annum on an aggregate level, through increased recycling ratios, upgraded factory machinery, increased utilization of heat waste, enhanced institutional capacity and improved energy conservation. NDB’s due diligence on environmental and social aspects found the Project unlikely to have any significant negative impact on the environment or involuntary resettlement. The Project is classified as Category “B”, according to NDB’s environment and social framework.