ASIAN DEVELOPMENT BANK FUNDS $160 MILLION LOAN FOR GREEN AND INCLUSIVE RURAL DEVELOPMENT IN SHANXI PROVINCE

The Asian Development Bank (ADB) has approved a $160 million equivalent loan to support the Shanxi Low-Carbon and Inclusive Rural Development Project, aimed at enhancing inclusive, green, and sustainable urban–rural public services in Shanxi Province, the People’s Republic of China (PRC).

The project’s primary objectives include the reduction of greenhouse gas emissions and air pollutants, efficient water management to address water scarcity, and the promotion of nature-based wetland rehabilitation for carbon sequestration and biodiversity conservation. To achieve these goals, the project will utilize high-efficiency heat pumps and biomass boilers for rural clean heating systems, renovate rural buildings, implement smart water management solutions, develop a smart wetland and carbon asset management platform, and establish low-carbon and climate-resilient facilities for older persons.

ADB Project Administration Unit Head Lei Zhang emphasized that the project will showcase innovative approaches to improve public services, strengthen institutional capacity, and operate a green and inclusive financing mechanism. The knowledge gained from the project’s implementation will be disseminated by ADB, generating benefits for regions in the PRC and other countries with similar natural and socioeconomic conditions.

Shanxi Province, situated in central PRC along the Yellow River, faces challenges such as high carbon-intensive and unbalanced urban and rural public services, climate-change-exacerbated weather events, and worsening environmental degradation. These issues threaten the fragile Yellow River Basin ecological system and impact vulnerable rural and older populations.

The total cost of the Shanxi Low-Carbon and Inclusive Rural Development Project is $318.41 million, with $158.41 million provided as counterpart financing from the government and other sources. The project is expected to be completed by 2029.

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