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The World Bank GEF Project - Environmentally Sustainable Development of the Iron and Steel Industry in China Enterprise Demonstration Activity
Date: 04-07-2021

  Call for Expression of Interest

  To all units concerned,

  On May 23, 2001, P.R. China signed the Stockholm Convention on Persistent Organic Pollutants (POPs) (hereinafter referred to as the Convention), which entered into force for China on Nov. 11, 2004. The Parties to the Convention are obliged, under the requirements of Article 5, to take actions to reduce or eliminate the releases of unintentionally produced POPs (UPOPs) listed in Annex C and to promote the application of the best available techniques (BAT) and the best environmental practices (BEP). UPOPs include a particular group of substances such as polychlorinated dibenzo-p-dioxins (PCDDs) and polychlorinated dibenzofurans (PCDFs) (together referred to as dioxins, the most representative UPOPs), polychlorinated biphenyls (PCBs), hexachlorobenzene (HCB), pentachlorobenzene (PeCB), polychlorinated naphthalenes (PCNs) and hexachlorobutadiene (HCBD) . The National Implementation Plan for the Stockholm Convention on Persistent Organic Pollutants in China (NIP, 2007) requires to take emission reduction actions for UPOPs such as dioxins. Iron ore sintering and electric arc furnace steelmaking are the priority sectors where actions are needed.

  To help China fulfill its obligations under the Convention, the World Bank together with the Ministry of Ecology and Environment of China (represented by FECO, the Foreign Environmental Cooperation Center), developed the GEF funded project “Environmentally Sustainable Development of the Iron and Steel Industry in China”. The project aims to reduce UPOPs produced and released from the steel and iron industry in China, through the introduction, demonstration and replication of BAT/BEP, to strengthen the application of new technologies and regulatory capacity in the industry, and to promote environmentally sustainable development of the industry. Meanwhile, the project will also advance the realization of ultra-low emissions in the steel and iron industry, synergistically reduce the release of other environmental pollutants, including mercury, facilitate the battle against pollution and help reduce pollution and carbon emissions, and make contributions to protecting global human health and ecologic environment. In June 2020, the project was reviewed and approved by the 58th GEF Council, for inclusion into the GEF-7 project work plan. Currently, the GEF has approved the project preparation grant (PPG) for the project.

  In accordance with project activity design, the project will conduct BAT/BEP demonstration targeting 2 iron ore sintering production lines and 1 electric arc furnace steelmaking production line during the implementation stage (of the full-sized project) in order to reduce UPOPs emissions. In PPG stage, at least 1 demonstration production line will be identified (other production lines meeting the screening criteria will be listed as candidate demonstration production lines). Therefore, the open call of a demonstration enterprise for the project has hereby been initiated. FECO and the World Bank will select an eligible demonstration enterprise according to requirements as follows:


  I. Qualification requirements for the demonstration enterprise

  Legally registered in China as an independent legal entity;

  Has iron ore sintering or electric arc furnace steelmaking production line(s);

  The production line to be applied for reconstruction and upgrading has passed completion acceptance and has been in operation for consecutive production for at least two years;

  The proposed plans for reconstruction and upgrading of the production line to be supported by the project meet national and regional policy requirements and standards for ultra-low emission, clean production, and BAT, and it is planned to begin reconstruction for ultra-low emission between September 2021 and December 2022;

  The proposed plans for reconstruction and upgrading of the production line to be supported by the project voluntarily include additional technical and management practices in accordance with Stockholm Convention BAT/BEP guidance, building on the existing plan for ultra-low emission reconstruction, promise to have dioxins emissions meet the expected standards of BAT/BEP (<0.2 ng TEQ/m3 and <0.1 ng TEQ/m3 for iron ore sintering and electric arc furnace steelmaking production lines respectively);

  Meets environmental management requirements with complete documents (including legal EIA, EIA approvals and acceptance inspection documents, and valid pollutant discharge permit ); especially:

  Hold legal “land certificate”;

  Be away from area of high biodiversity/ sensitive habitats/ conservation value/ heritage sites, and meet the legal requirements of the buffer with communities;

  Meet GB standard for emissions;

  No major environmental violation in the past 3 years;

  Pass clean production audit of the sector;

  Establish a certified environmental management system (e.g., ISO14000 certification);

  Good labor management practices (including legal Safety and Occupational Health assessment documents), as demonstrated by:

  No major labor violation or occupational health and safety (OHS) incidents in the past 3 years;

  A recognized certified management system is preferred;

  Good operation status with sufficient fund to complete the ultra-low emission reconstruction and with commitment to provide co-financing for BAT/BEP upgrading and reconstruction.

  Commits to continuously operating the facility after the demonstration phase and conducting periodical monitoring of dioxins and furans to ensure compliance with BAT/BEP standard.

  Commits to conforming to the World Bank Environmental and Social Framework for the activities to be supported by the grant.


  II. Demonstration process

  The demonstration mainly contains 2 stages as follows:

  1. Enterprise screening (the present stage, i.e. from March to December 2021): FECO issues a call for expression of interest, then evaluates and selects an enterprise based on the information provided by respondent enterprises. The selected enterprise will take part in the PPG, be listed in project evaluation documents, and participate in project demonstration and dissemination activities;

  2. Demonstration activities (after the full-sized project is approved): FECO signs a demonstration implementation agreement with the enterprise, based on the materials provided by the demonstration enterprise and evaluation results in the earlier stage, and in accordance with the World Bank’s requirements. The enterprise conducts demonstration activities according to the demonstration implementation plan and the World Bank’s management requirements, including under the World Bank’s Environmental and Social Framework, and FECO carries out evaluation and general acceptance inspection on the demonstration project.


  III. Budget

  The project will provide financial support to the demonstration enterprise on implementation of the demonstration activities, including technical consulting services, goods and building projects. No more than $5 million of grant will be provided to each demonstration production line and a total grant of no more than $12 million will be provided for the three production lines. The enterprise is required to provide co-financing (cash and in-kind included) at least 7 times of the grant to be applied.

  For any enterprise interested in participating in the demonstration activity of the GEF Project: Environmentally Sustainable Development of the Iron and Steel Industry in China, please contact FECO by submitting an Expression of Interest and supporting documents (template and requirements in Annex 1) by mail in hard copy (soft copy is needed as well) within 30 days upon the issuance of this call. Investigation, evaluation and screening will be conducted based on documents received.


  Contacts: REN Zhiyuan; QIN Mingyu




  Add:No.5 Houyingfang Hutong, Xicheng District, Beijing, China 100035


  Annex:1. Expression of Interest for the Enterprise Demonstration Activity of the GEF Project: Environmentally Sustainable Development of the Iron and Steel Industry in China (Template)

                 2. Terms of Reference (TOR) for the Enterprise Demonstration Activity of the GEF Project: Environmentally Sustainable Development of the Iron and Steel Industry in China




  Foreign Environmental Cooperation Center

  Ministry of Ecology and Environment

  April 7, 2021

Annex 1. EOI Template.docx

Annex 2. TOR.doc
Foreign Economic Cooperation Office, Ministry of Environmental Protection of China
5 Houyingfang Hutong, Xicheng District, Beijing, P.R. China, Postal Code: 100035, Tel: +86-10-82268810, Fax: +86-10-82200510