Page 139 - Low Carbon Development in China and India
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growth programmes of South Korea. Another typical form of the PPP
financing is the energy management contract.
Box 2.3: Private Finance Initiative Supported by the Local
Governments
The Birmingham District Energy Scheme is a comprehensive regional low carbon
growth scheme which primarily aims to provide more efficient and cleaner energy by
way of reconstructing the network and generating thermal power jointly. In order to
finance the scheme better, the Parliament of Birmingham entered into cooperation with
the Cofely District Energy Ltd to establish the Birmingham District Energy Company in
2007, in the hope of fuelling the private sector’s enthusiasm in investment and fulfilling
the area’s low carbon growth goals. The Broad Street project under the scheme can
ensure an annual reduction of 4,000 tonne carbon dioxide. In addition, the energy
conservation projects at Ashton University and Birmingham Children’s Hospital have
been started in 2009 and 2010, respectively.
Box 2.4: Construction of the Eco-friendly Sports Stadium in
Nice, France
The eco-friendly sports stadium project in Nice, France, required a whole cycle of
work—design, financing, construction, use and maintenance, etc. The project aims
to build a self-sufficient sports stadium where the balance of energy supply and
consumption are in positive numbers. As an important element of the overall sustainable
development goals of Nice, the stadium uses a large quantity of wood structures and
a unique ventilation design relying on natural wind. Although the project was hard to
execute under the traditional financing models, it succeeded under the PPP form of
financing, where the public and private sectors signed a 30-year long contract. The
preliminary cost was relatively high, but considering the relatively long term of recovery,
the investors of the project took energy conservation into consideration in the overall
planning and design in an effort to ensure a stable return in the long run.
Private Grants
Different from loans, grants normally do not aim at returns, but are
generally used to support development of public goods. The sources
of grants include domestic (individuals and organizations) and
international(bilateralandmultilateralbanks,individualsorenterprises,
and foreign governments) donations. In China however, an absolute
majority of the grants comes from international donations. Grants can
effectively drive implementation of the projects which are conducive to
development of the low carbon economy and the public (infrastructure)
facilities, and is a primary source of finance for local governments.
104 Low Carbon Development in China and India
financing is the energy management contract.
Box 2.3: Private Finance Initiative Supported by the Local
Governments
The Birmingham District Energy Scheme is a comprehensive regional low carbon
growth scheme which primarily aims to provide more efficient and cleaner energy by
way of reconstructing the network and generating thermal power jointly. In order to
finance the scheme better, the Parliament of Birmingham entered into cooperation with
the Cofely District Energy Ltd to establish the Birmingham District Energy Company in
2007, in the hope of fuelling the private sector’s enthusiasm in investment and fulfilling
the area’s low carbon growth goals. The Broad Street project under the scheme can
ensure an annual reduction of 4,000 tonne carbon dioxide. In addition, the energy
conservation projects at Ashton University and Birmingham Children’s Hospital have
been started in 2009 and 2010, respectively.
Box 2.4: Construction of the Eco-friendly Sports Stadium in
Nice, France
The eco-friendly sports stadium project in Nice, France, required a whole cycle of
work—design, financing, construction, use and maintenance, etc. The project aims
to build a self-sufficient sports stadium where the balance of energy supply and
consumption are in positive numbers. As an important element of the overall sustainable
development goals of Nice, the stadium uses a large quantity of wood structures and
a unique ventilation design relying on natural wind. Although the project was hard to
execute under the traditional financing models, it succeeded under the PPP form of
financing, where the public and private sectors signed a 30-year long contract. The
preliminary cost was relatively high, but considering the relatively long term of recovery,
the investors of the project took energy conservation into consideration in the overall
planning and design in an effort to ensure a stable return in the long run.
Private Grants
Different from loans, grants normally do not aim at returns, but are
generally used to support development of public goods. The sources
of grants include domestic (individuals and organizations) and
international(bilateralandmultilateralbanks,individualsorenterprises,
and foreign governments) donations. In China however, an absolute
majority of the grants comes from international donations. Grants can
effectively drive implementation of the projects which are conducive to
development of the low carbon economy and the public (infrastructure)
facilities, and is a primary source of finance for local governments.
104 Low Carbon Development in China and India
