The loan is worth €428 million (US$506 million) and its purpose is reportedly to encourage the adoption of advanced technologies by major emitting industries on a large scale. These industries include transportation, power generation, heating and fertilizer production.
Reuters reports that the first two loans were approved in 2015 and 2016. Combined, they had a value of just under US$800 million, and aimed to strengthen policy reforms and regulatory capacity in Hebei province, as well as to help both small and medium sized companies scale up their investments in pollution reduction projects in the region.
According to Reuters, Lin Lu, senior energy specialist at ADB’s East Asia Department, said: “We remain committed to helping the Chinese government improve air quality and reduce pollution in the greater Beijing-Tianjin-Hebei region, where a third of the country’s economic growth comes from.”
Reportedly, the assistance provided by ADB is expected to attract approximately €1.3 billion in co-financing from both private and public sectors.