The 2nd tripartite project review (TPR) was held on 9th August 2005 in Beijing. The attendees included the officers and representatives from UNDP, Municipal of Science and Technology (MOST), CICETE, Chief Technical Advisor (CTA), national project management office (PMO), Beijing PMO, Shanghai PMO, Sinohytec Company, Tsinghua Tongfang Company and China Automotive Technology & Research Center. The meeting was chaired by Mr. Kishan Khoday (ARR/Cluster Leader of UNDP).

　The Deputy National Project Director (NPD) gave a presentation on the implementation and achievement of the project results to date. He also reported on the progress of Phase II Project preparation and the follow up actions. Main points raised by the Deputy NPD at the TPR meeting are as follows:

• The three FCBs made by Daimler Chrysler had been procured and are on their way to be shipped to China around mid September 2005. MOST and BP reached agreement for the construction of the hydrogen refueling station in Beijing. The Beijing Municipal Government provided strong support to organize coordination meeting with participation government departments concerned to solve issues in building the station.

• To prepare for the demonstration of the FCB operation, the Beijing City PMO selected the operation route for the buses, conducted preliminary training for the operation and maintenance staff, and started the construction of the garage and spare parts procurement.

• Several coordination meetings among government ministries were organized to obtain the government support for registration of the FCBs and H2 station construction. This greatly shortened the time for the routine procedures.

• The evaluation had been conducted. The conclusion acknowledged the success of Phase I Project and is supportive for the start of Phase II Project.

　The Deputy NPD also indicated the main contents of Phase II project. In Phase II Project, it is intended to use Request for Proposal (RFP) for the procurement, to target on hybrid configuration with low cost and high efficiency of fuel utilization as the first consideration, and to use by-product to produce hydrogen. He also summarized the activities for 2005.

　The CTA, Mr. John R.Wallace congratulated the achievement of the project and stated that is was common for the delay in building the refueling stations elsewhere, but the most important is that the project should always have a back plan to solve the problems.

　The city PMOs of Beijing and Shanghai supplemented the report of the Deputy NPD and specifically elaborated on the preparatory work for the arrival of the FCBs in Beijing and the coming demonstration and the initial planning for Phase II Project that will mainly cover Shanghai.

　CICETE commented that the project has now seen its concrete results of the arrival of the buses since Year 2000 when the country began to apply GEF assistance for FCB development in China.

　Review and discussion of the project implementation

• Hydrogen Refueling Station. It was reported that the construction of the station was delayed due to the land purchase. To ensure the timely start of the operation of the FCBs in Beijing, BP, the partner of Sinohytec Company, both lead the construction of the station, agreed to use a temporary refueling system to provide hydrogen for the buses. The system is estimated to be put in-service in late October 2005.
• Import of Spare Parts and Instruments. CICETE, the service provider of the project, indicated some documentation support is required by the Customs for the import of the spare parts for the DC buses. Ballad, the FC producer also informed the project that it would import some spare parts and testing instruments for the FCs.
• Project Termination. It is concluded that the project may have to be extended to accommodate the import of the spare parts for the FCBs. CICETE also reported that Ballad, the FC producer of the buses, informed that they will need to import some spare parts and instruments to ensure the demonstration of the FCBs commercial operation. Both requirements were not included in Phase I Project. It is not sure when Phase II Project will be approved and implemented. The TPR meeting agreed to keep the project open till the approval of Phase II Project to provide all necessary support for the operation of the FCBs including the delivery of the spare parts and the instrument for the demonstration activities of the FCBs.

• Ceremony of the FCB Delivery/Operation. The PMO reported that the government would organize an international workshop on clean energy vehicles in November 2005. During which the government plans to show the buses with a ceremony. Daimler Chrysler wished to have an early ceremony in October when the buses are ready. It was noted that waiting till November the project will on one side lose one month of warranty of services from the supplier; and on the other side the media will have less interests from news coverage aspect for the event. In understanding of this, the TPR agreed that the ceremony will be organized soon after the buses are ready for the operation.

　Follow-up Actions of the TPR Meeting

• The TPR agreed that the project will be extended to ensure the smooth operation of the FCBs and the hydrogen refueling station in Beijing, including the necessary import of the spare parts and instruments for the three FCBs. Relevant documentation is required to endorse the extension.
• The PMO will provide information required by the STAP review and the Letter of Endorsement (LOE) and financial confirmation from the respective ministry.
• The PMO is requested to assist BP and Sinohytec Company to work out the back-up plan for the temporary refueling system.
• The TPR suggested a programme for the ceremony for the FCB delivery/operation be worked out by the PMO for endorsement by the government and UNDP.
• The institutional arrangement for the project document shall be reviewed again to further specify roles and responsibilities of the stakeholders.