| Project Detail |
The objective of the Project is to strengthen the impact of CEXIM’s green loan portfolio by enhancing CEXIM’s ESMS through supporting its on-lending facility.
DESCRIPTION
The Project is to finance green sub-projects in China by providing a Non-Sovereign backed loan to CEXIM, one of China’s three state-owned policy banks.
ENVIRONMENTAL AND SOCIAL INFORMATION
AIIB’s Environmental and Social Policy (ESP) including the Environmental and Social Exclusion List (ESEL) and Environmental and Social Standards (ESSs) apply to this Project. The Project is placed in Category FI, as the financing structure involves the provision of funds to CEXIM pursuant to which AIIB delegates the decision-making related to the use of the AIIB’s funds insofar the sub-projects meet the conditions to be agreed with the client. This will include the selection, appraisal, approval and monitoring of sub-projects in accordance with AIIB’s ESP requirements. CEXIM’s (i) Environmental and Social Management System (ESMS) enhanced and aligned with AIIB’s ESP and (ii) Green Finance Framework (GFF) developed and aligned to internationally recognized green catalogue, standards, and principles, will be used as the project’s E&S instruments.
The preliminary pipeline comprises of green sub-projects such as renewable energy, ecosystem rehabilitation and others in China. Impacts on communities’ health and safety, sensitive habitats, ecosystems and its services, and working conditions are potential ES risks associated with such sub-projects. Activities in AIIB’s ESEL and Category A sub-projects will not be eligible for financing. Coal mining, coal transportation or coal-fired power plants, as well as infrastructure exclusively dedicated to support any of these activities will also be excluded.
AIIB will conduct prior review and approval of all sub-projects to (i) facilitate knowledge transfer, (ii) implement enhanced ESMS in compliance with AIIB’s ESP requirements and (iii) implement established GFF in alignment with internationally recognized green catalogue, standards, and principles. Every sub-project will be screened to identify and assess the risks. Following the assessment, appropriate mitigation measures will be adopted.
CEXIM will publish its ESMS and GFF on its website, in both Chinese and English. E&S assessment reports of sub projects (e.g., Environmental and Social Impact Assessment, Environmental and Social Management Plan, etc.) will also be disclosed in a timely manner. In addition, CEXIM will publish retrospectively a summary of E&S aspects and overview of its E&S impact of the sub-projects, subject to the PBOC’s regulatory requirements on information confidentiality applicable to the banking sector.
CEXIM will establish a Project-level GRM, including contacts and processes to receive and handle related E&S matters, in both Chinese and English. The Project-level GRM will be made available to Project-Affected People (PAPs) and will provide information on AIIB’s Project-Affected People’s Mechanism (PPM). Under its ESMS, CEXIM requires sub-borrowers to establish a suitable sub-project level GRM and inform people in the project’s footprint about its availability. The GRM will receive and facilitate resolution of the concerns and complaints of people who believe that they have been adversely affected by the Project’s E&S impacts. |
