The development and global environment objectives of this project were to improve the efficiency of energy use in the People's Republic of China and facilitate reductions in carbon dioxide emissions and other pollutants through energy efficiency investments. The project had three components:
- to develop three pilot Energy Management Companies (EMCs) to introduce, demonstrate, and disseminate the Energy Performance Contracting (EPC) concept "namely developing market-based instruments to encourage private participation in energy conservation investment".
- to develop a national energy conservation information center to disseminate energy conservation project results to enterprise managers; and
- a project management and monitoring component. The evaluation report rated the project as satisfactory overall.
The risk to development outcome is rated negligible to low, while both the Bank's and the Borrower's performance were rated satisfactory. Lessons learned from the assessment included: EPCs require quick implementation and closure, so it is important for the Bank's procurement procedures to be flexible; and although EPCs are meant to be a market solution for energy efficiency, in a transitional economy like China, strong government support is crucial for the market to deliver successful results.