China is joining hands with the World Bank for the sustainable
development of an energy-saving industry operating under the
country's fostering market economy, sources with the State Economic
and Trade Commission disclosed.
Seeking a new energy-saving mechanism, the commission reached a
consensus with the World Bank to improve the efficiency of energy
consumption through carrying out an energy-saving and clean energy
promotion program.
The program, funded by the World Bank and technically supported by
the Global Environment Fund, is aimed at introducing the world's
latest energy-saving concepts, demonstrating their effects and
popularizing them throughout China.
Under the program, a variety of energy management companies
promoting energy-efficient projects are expected to mushroom.
The companies will feature contracted management, which is designed
to provide various services enabling enterprises to adopt
energy-saving technologies and corresponding management.
Under the previous planned economy the popularization of
energy-saving technology used to be operated under a trinity made
up of the government, agencies responsible for energy-saving
services and enterprises.
However, the framework is collapsing due to the readjustment of
government administrative functions and inadequate government
financing as the country embarks on a market path, experts say.
China has, since 1996, set up three joint-stock companies adopting
contracted management for energy-saving projects in Beijing,
Liaoning and Shandong provinces respectively.
To
date, these companies have succeeded in bringing 107 energy-saving
projects into effect in the fields of boilers, electrical
engineering and heating with some 160 million yuan (US$19.3
million) of investment.
Experts with the commission said that the commercialization of
China's energy-saving efforts can be realized under the model with
superior financing and technology capabilities.
As
profit-making professional businesses, these companies have not
only further developed themselves by sharing the profits gained
from the projects they have sponsored, but have also attracted more
investors to participate in such projects.
More similar companies are expected to be set up in the country
with the help of the commission, including management training and
the introduction of loans provided by commercial banks.
Under such a model, enterprises can use profits gained from energy
saving to upgrade their existing equipment and lower operating
costs.
Such a mechanism is expected to save funds usually raised by
enterprises themselves for improving their energy-efficient
projects, experts say.
To
ensure the smooth development of an energy-efficient industry, the
State Economic and Trade Commission will set up a special agency
for the administration of energy-saving projects operating under
the model.
Using donations from the World Bank as initiating funds, the agency
will establish a credit pooling mechanism to support energy
management companies.
(China Daily 10/07/2000)