The project appraisal committee meeting of China FCB project was held on 27th November, 2006 in UNDP (China) conference hall. The related officials and experts respectively from MoST, MOF, Beijing Municipal Science & Technology Commission, Shanghai Science & Technology Commission, UNIDO, WWF, CICETE, UNDP, Tsinghua University, Tongji University, DaimlerChrysler (China), GM, Sinohytec etc. attended the meeting.

The main purpose of the PAC is to formally review the design of the project document and make recommendations for approval or revisions.

The PAC meeting was chaired by Ms Alessandra Tisot, senior deputy resident representative. Ms.Alessandra Tisot, introduced participants and FCB project background firstly. She hoped that everyone puts forward the precious opinion for promoting the development of China FCB project phase II.

After the remarks of Ms. Alessandra Tisot, Mr. Xu Jing,Deputy Director General of Ministry of Science and Technology gave brief remarks. He said that MoST had cooperated with UNDP for many years in clean energy areas, including clean vehicle action, FCB demonstration and courtyside projects. Chinese government paid great attention to the sustainable energy and transportation development. The Chinese government will in put about 1 billion RMB in the FC and FCV technology in the coming five years.

Under the support from UNDP-GEF, the FCB project got a great achievement in China. The three FCBs and the first hydrogen refilling station were all put into operation in Beijing.

In Phase II, we will pay more attention to the policy study related to FCB and public awareness based on the experience and lessons learn from Phase I. And MOST together with Beijing and Shanghai government will jointly promote the development of FCB in China.

Huang Wenhang, Deputy Division Director of Ministry of Finance mentioned the importance of China FCB project and how to implement the project phase II. She also introduced the new finance policy was carried out and will promote the development of FCB in China.

Professor Lun Jingguang of PMO gave detailed introduction of Phase I outcomes and the contents of project phase II.
(1) Outcomes of Project Part I.
　　FCB Project incepted on March 27,2003.
　　FCB supplied contract signed on May 25,2004 with the bidding winner DaimlerChrysler.
　　3 FCBs handover ceremony on Nov. 23,2005.
　　Formal operation on June 20,2006.
　　Beijing H2 refueling station was put into service on Nov. 8, 2006.
　　Learning tour and exchange of the technical experts as well as policy makers with Canada, Japan, Brazil, Australia, European countries etc.
(2) Contents of Project Part II.
　　The main contents of project phase II includes continue to FCB demo in Beijing; purchase FCBs for Shanghai through international bidding, construct hydrogen refueling station and start demo operation in Shanghai until 2010.
　　To demonstrate the operational viability of FCBs and their refueling infrastructure by setting up FCB fleets and supportive facilities in China.
　　To accumulate technical and policy knowledge for advancing commercialization of FCB technology and hydrogen refueling system.
　　Promote enabling environment for FCB further development, support and engage in the FCB development roadmap design including expanded demonstration feasibility study.

Discussion:
(1) Q: Mr. Gerd Arnold, GM.
In the Phase I, did the project do any CO2 emission reduction analysis?
A: At present, such analysis was not done yet. The CO2 emission reduction analysis depends on the boundary conditions. Different hydrogen production technologies will produce different results. Actually, the national institutes had done such analysis on the different vehicles. And they found that the results were different from the results done abroad. But we will continue conduct analysis in the future.

(2)Q: Mao Zongqing, Professor, Tsinghua University
I involved in the project 7 yeas before. At that time, China did not have FCBs, but now the situation is different from 7 years ago. China developed its domestic FCBs already, Chinese Government invested lots of money on this project. The foreign FCBs price is too high. so I suggest promoting the Chinese policy and standard establishment. And I hope that the locally made FCBs will be operated in the future.
A: In the phase II of the project, the project will focus not only on the policy but also the market study of FCB and other clean vehicles.

(3) WWF-China: Chen Dongmei
There are great outcomes and achievements and the reasonable implementing strategy of the project, but the technology of FCB are not mature and the cost is too high. I suggest 1) sharing the information and technology with more corporations and institutes and partnets. 2) FCB project development should integrate with city and public transportation planning.
Reducing the emission of CO2 is Chinese responsibilities. WWF is willing to provide helps and funds for the project.

（4）Q: Are there any changes to the timeframe of the bidding documents?
A: There are no major changes of the bidding documents. The detailed timeframe will be determined after the inception workshop.

Since the start of CHINA Fuel Cell City Bus Commercialization Project in 2003, the project receives the extensively attentions from all the field of sociality. The demonstration experiences of Fuel Cell Bus in China provides great helps and references for other developing countries .With the great efforts of the UNDP,GEF and MOST, The implementation of Fuel Cell Public Bus Commercialization Project will show a good significance in China.