ADB Approves Loan to China's Power Project

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Last updated at: (Beijing Time) Friday, December 21, 2001

ADB Approves Loan to China's Power Project

The Asian Development Bank (ADB) Friday approved a 100-million-U.S. dollar loan for a project that will increase the capacity and efficiency of electricity transmission to Liaoning province in the northern China.

The project is an extension of an earlier ADB-assisted project to transmit power generated in the sparsely populated Inner Mongolia Autonomous Region to Shenyang in northern Liaoning Province. The latest project will extend the transmission line further to Dalian in the southern Liaoning province.

Some 2 million rural poor will particularly benefit from the rehabilitation of rural electrification networks in the impoverished counties. The upgrading is expected to cut electricity bills as well as reduce the use of fuels such as straw, firewood and coal, which adversely affect health.

The project supports the Chinese government's commitment to reduce the use of coal for power generation that has contributed to unacceptably high levels of air pollution.

The total project cost is 475 million dollars and the balance will be met by the executing agency Liaoning Electric Power Company and a loan from the China Construction Bank.

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