This China Energy Conservation Project was designed to support the introduction of a market-based approach to financing energy conservation investments and energy performing contracting, in order to try and overcome some of the major impediments to energy conservation in China. The project was also designed to support a new energy information program, providing consumers with information on financially attractive energy conservation investments. The project had three components:
- Energy management company demonstration;
- Information and dissemination; and
- Program management and monitoring.
This evaluation report rated project outcomes as satisfactory overall. Furthermore, global environment objectives (GEO) were satisfactory, the risk to development outcome was low or negligible and for GEO was low or negligible, the Bank performance was satisfactory, and the Borrower performance was satisfactory. Some lessons learned include: consistent central government support was critical for the success of the project; government support provided necessary legitimacy to the emerging new businesses; and that provincial government support was also important. Finally, the report finds that flexibility and adaptability were crucial in the design of the project since it introduced new concepts and practices.