The objective of the Shandong Energy Efficiency Project for China is to improve energy efficiency in selected enterprises in the borrower's Shandong province, particularly through financial leasing arrangements, and increase use of biomass for power and heat generation. The changes will introduce commercial practices for the procurement of goods, and supply and installation of equipment contracts by the three participating companies in component A. The loan agreement will be amended with the following changes: a) updating the applicable procurement and consulting services guidelines to their current versions (both dated January 2011); b) adding 'well-established private sector procurement methods or commercial practices which have been found acceptable to the bank' as an applicable procedure under component A; and c) revising the prior review requirements to accommodate these changes.