Ex-post Evaluation

1. Outline of the Project

Country:

China

Project title:

Dalian China Energy Conservation Training Center Project

Issue/Sector:

Energy

Cooperation Scheme:

Project-type Technical Cooperation

Division in Charge:

First Technical Cooperation Division, Mining and Industrial Development Cooperation Department

Total Cost:

Approximately 550 Million Yen (cost of equipment supply and local operation)

Period of Cooperation

9 July 1992 – 8 July 1997
Follow-up:
9 July 1997 – 8 January 1999

Partner Country’s Implementing Organization:

State Scientific and Technological Commission, State Development Planning Commission, State Economic and Trade Commission, Dalian City People's Government

Supporting Organization in Japan:

Ministry of International Trade and Industry, Agency of Natural Resources and Energy; The Energy Conservation Center, Japan

Related Cooperation:

1-1 Background of the Project

The Chinese government sets energy-saving measures as an important challenge in promoting various modernization projects. In September 1984, the government requested Japan to "carry out a survey on industrial energy-saving planning" in order to lay out a practical remodeling plan for pushing ahead with energy saving. On the basis of results and recommendations of the survey conducted in 1985-86, the Chinese government planned to establish the “China Dalian Energy Conservation Training Center" in Dalian, an energy saving-type city, and requested the Project formally in November 1990.

The Project is the largest technical cooperation project in an energy-saving area between Chinese and Japanese governments, and was operated by Dalian City Government under contract to State Scientific and Technological Commission, State Development Planning Commission, State Economic and Trade Commission. The main objectives are to establish an energy education base with a high degree of professionalism, to foster experts holding high-level energy-saving techniques and to put the advanced energy-saving techniques used in other countries including Japan into widespread use throughout China.

1-2 Project Overview

In order to foster energy-saving technical experts in China, dispatch of experts, education for Chinese-side trainees in Japan and provision of equipment to China were carried out in three energy-saving fields (energy-saving management techniques in plants, heat control technologies and electricity management technologies).

(1) Overall Goal
To put energy-saving technique into widespread use throughout China

(2) Project Purpose
The Center will be able to foster energy-saving experts, covering all of China.

(3) Outputs
1) To establish a system for operating the Center
2) To foster counterparts in the Center
3) To establish a training function in the Center
4) To establish the Center's foundation for spreading energy-saving information and performing a publicity function

(4) Inputs

2. Evaluation Team

Members of Evaluation Team

JICA China Office (Commissioned to Yanjia Wang of JP Ruihua EnvironTech Co., Ltd)

Period of Evaluation

February 2002 – 15 March 2002

Type of Evaluation:

Ex-post Evaluation by Overseas Offices

3. Results of Evaluation

3-1 Summary of Evaluation Results

(1) Relevance
The implementation of the Project was very appropriate. The Center's operating targets are in agreement with energy laws and related regulations in China. Also, each industry in the country must work toward energy saving to enhance its company's competitiveness, and needs new knowledge, trends, and facilities to use energy-saving technologies rationally.

(2) Effectiveness
The Center paid off handsomely in training energy-saving technology experts. From May 1994, when the Center started operation, to January 1999, the Center trained a total of 2,500 experts in energy-saving technology in each industry, such as metallurgy, chemical engineering and machine industries, and the trained experts became the core for popularizing energy-saving activities in each work site by applying knowledge learned at the Center. Also, for three years after the project completion, the Center fostered 893 energy-saving technology experts. The Center carried out a in-country training program under the Japanese technical cooperation.,

(3) Impact
The Project has had positive impacts as follows. All of the first-class administrative districts having trainees educated at the Center are conducting energy-saving activities. Especially, plants to which the Center performed energy-saving diagnosis play exemplary roles in energy-saving activities. Also, each first-class administrative district is pressing ahead with planning and implementation of regulations related to energy-saving measures actively; technical remodeling and technical innovation through energy-saving diagnosis enable companies to reduce costs; environmental protection presses ahead, leading to lower emission amounts of CO2 and SO2 due to reduced quantity consumed of coal.

(4) Sustainability
After implementation of the Project, the Center shifted to an organization operated independently under the supervision of the State Economic and Trade Commission and Dalian City Government, and increased the number of staff and prepared operating rules. In personnel aspects, competent executive officers were dispatched as senior staff members of the Center, and the staff in each field has been reinforced as the need arises in operation. In organizational aspects, the guidance of the State Economic and Trade Commission and Dalian Economic and Trade Commission has been strengthened and the Center's activities and development are supported. On the other hand, the Center must operate as a fully independent organization financially, but does not have start-up funds nor subsidy. The lack of experience, technology and means to manage seed money in a market economy are also limiting factors in expanding the Center independently. In addition, some of the equipment provided by Japan is in disrepair and needs to be repaired or updated although the provided equipment was very important in developing operation after the Project completion.

3-2 Factors that promoted realization of effects

(1) Factors concerning Planning
Since the Project was carried out in the period when the Chinese side needed high-level energy-saving experts, postulates for implementing the Project were met and cooperation was encouraged.

(2) Factors concerning the Implementation Process
1) JICA China Office actively supported settlement of the problems which arose in the project operation process, leading to the creation of impacts.
2) In developing training and energy-saving diagnosis, the Chinese-side trainees received by the Japanese-side played central roles in technical aspects, leading to the creation of impacts.

3-3 Factors that impeded realization of effects

(1) Factors concerning Planning
N/A

(2) Factors concerning the Implementation Process
1) Since some of experts trained in Japan have already left the Center after Project implementation, the Center's abilities to implement operations are dwindling.
2) As Dailian Tao Yuan Shan Zhuang, constructed by the Chinese side to accommodate trainees was spin off from the Center,, the Center is no longer able to receive earnings from its accommodation facilities; however, the Center is making efforts to maintain its financial self-sufficiency through implementing energy-saving diagnostic services for other organizations and holding seminars on its own.
3) The Center did not have enough work; consequently, experts and facilities in the Center were not fully utilized.

3-4 Conclusion

Impacts are noticeable during the Project cooperation and after the completion. But the Center shifted to an organization on a self-financing basis, so there are some problems in terms of financial sustainability.

3-5 Recommendations (specific measures, proposals and advice for this project)

1) Regarding the energy-saving diagnosis activity, the Center should start the service for companies with favorable business situations such as government-owned corporations and foreign capital firms, and then, gradually develop companies which want the diagnosis. Also, the Center should carry out training in more provinces.
2) The Center should strengthen cooperation with Dalian Science and Technology University, and should not only let the university use the Center's facilities, but also open the laboratories. Thereby, it would be possible for the Center to generate earnings necessary to maintain equipment and protect training sites.
3) The Center should actively promote cooperation with other countries or international organizations such as the European Union, the World Bank and United Nations Development Programme.
4) While making good relations with State Economic and Trade Commission firm further, the Center should make efforts to receive more orders of entrusted projects from the Commission under favor of the relationship.
5) The Center should help the staff raise its consciousness of markets, and develop the markets energy-saving diagnosis projects actively.
6) Japan should dispatch technicians and maintain all equipment provided by Japan. Also, Japan should settle the problem of the lack of spare parts, so the provided equipment can be utilized continuously. Furthermore, Japan should improve the Chinese-side’s abilities to maintain equipment on their own.

3-6 Lessons Learned (matters which are helpful to identification/creation, implementation and management control of other similar projects)

(1) In planning projects, it is necessary to fully consider the impact of external environment such as each country's economic situation on financial sustainability.

(2) Contracts should be concluded between the Center and participants in the training in Japan to keep them engaging in the field after returning home

3-7 Follow-up Situation

After the project (follow-up) implementation, a in-country training "Senior Manager Training on Energy Saving and Environmental Protection" has been carried out for five years, FY 1999- FY2003, based on the above recommendations and lessons.