ADB TA 7225-PRC Technical Assistance for Sanchuan Energy Development Co., Ltd.

ADB PPTA No. 7225-PRC: Improving Corporate Governance and Enhancing Institutional Capacity of Environmental and Social Management for Sanchuan Energy Development Co., Ltd. 



EASEN was contracted for The Asian Development Bank (ADB) PPTA No. 7225-PRC: Improving Corporate Governance and Enhancing Institutional Capacity of Environmental and Social Management Project for Sanchuan Energy Development Co. Ltd. (Sanchuan), a developer of small hydropower plants in Yunnan Province, People’s Republic of China. In regards to this project, EASEN provided technical assistance in order to build capacity in environmental and social safeguards and establish good corporate governance.


At the corporate level, EASEN established an environmental and social unit (ESU) to oversee the environmental and social aspects of hydropower projects developed by project-level companies. The ESU staff members then prepared and implemented safeguards in subprojects which also included staff training. Finally, a monitoring and evaluation mechanism was built into the capacity building program.


EASEN also conducted a thorough examination and analysis of the existing corporate governance policies and practices of Sanchuan. Our experts recommended ways to become a well-run transparent company, consequently improving its performance and access to capital. The recommendations were in the form of an action plan outlining steps and a timetable for implementation.

EASEN’s technical assistance (TA) consisted of two phases:




Phase 1: Environmental & Social Monitoring.


  • Determine environmental and social issues
  • Establish an outline of the environmental and social tasks to be carried out
  • Create a capacity building program to monitor and evaluate environmental and social issues




Phase 2: Corporate Governance & Financial Control.


  • Assure management transparency and accountability of company policies and practices
  • Draft a corporate governance code outlining the role and responsibilities of the board of directors, including independent board members, subcommittees, board policies, and treatment of minority shareholders

  • Assess current accounting and disclosure practices and internal controls for supervision of operational risks transaction controls, budgeting, and financial management

  • Establish practices in compliance with International Financial Reporting Standards (IFRS) in order to participate in international and domestic capital markets

  • Provide documentation to support enhanced internal auditing and control procedures

  • Set out a model set of accounts and provide a plan for implementation, training, and capacity building


The project began in May 2011 and finished in June 2012.