The development objective of the Second Energy Efficiency Financing (EEF) Project for China is to improve the energy efficiency of selected enterprises, and thereby reduce their adverse environmental impacts through scaling-up commercial lending for energy efficiency investments. The restructuring requests to extend the loan closing date by three months from December 31, 2014 to March 31, 2015. The rationale for the extension is: (i) the Chinese government continue to be fully committed to the project objectives. Energy efficiency has been one of the government's top policy priorities and is also fully consistent with the expected government agenda of the 13th five-year plan currently under preparation; (ii) the financial intermediary lending (FIL) instrument itself has demonstrated success as Export-Import Bank of China (EXIM) Bank and Huaxia have successfully mainstreamed its energy efficiency lending operation through the CHEEF I project; (iii) the government has requested a 24-month extension of the loan closing date through a letter dated on September 29, 2014 although no action plan has been developed to improve project performance; and (iv) after extensive consultations with key stakeholders, the government requests to have a three-month extension first to allow the implementing agency to develop an action plan to achieve the project development objective (PDO).