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ADB to lend $150m to NW China city's urban transport system
(Xinhua)
Updated: 2009-12-16 11:47
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The Asian Development Bank (ADB) will grant a loan of $150 million to the northwestern Chinese city of Lanzhou to help it improve urban transport system, the ADB's China office said Tuesday in a statement.
The loan is to help the provincial capital of Gansu to set up a rapid bus transit system that will reduce transport time and costs and cut emissions of greenhouse gases, it said.
The rapid bus transit system will link a planned new city center to the original hub, and provide a fast and clean mass transport service.
ADB's China office said it was the ADB's first project to support an urban mass transport service.
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The ADB's loan has a term of 25 years, including a grace period of 5 years, with the interest rate determined in accordance with ADB's LIBOR-based lending facility, according to the ADB China office.
The ADB's loan accounted for around 31 percent of the total project cost of $480.3 million, with Bank of China financing $240.3 million and Lanzhou city government providing $90 million.
The project is expected to be completed by the end of December 2014.
