AIIB provides its first corporate loan to Beijing natural gas project

BEIJING - The China-initiated Asian Infrastructure Investment Bank has announced a US$250 million loan for a natural gas project in Beijing to support the ongoing process of coal-to-gas conversion and to improve air quality in the Chinese capital city and its neighbouring region.

Scheduled for completion in 2021, the project will help reduce China's coal use by about 650,000 metric tonnes annually by connecting about 216,750 households in 510 rural villages to the natural gas distribution network, the Beijing-based multilateral financial institution said in a statement.

China Daily reported that the project is AIIB's first corporate loan and first investment in China. It will be carried out by the Beijing Gas Group Company and will involve construction of natural gas distribution networks and low pressure gas pipelines and household connections.

"China's commitment to reducing its reliance on coal will change lives and improve the environment, and that is why we are investing in a project aligned with their ambitious plan," said AIIB President, Jin Liqun. www.webershandwick.cn (ATI).