$130 m ADB loans give boost to Qingdao's green heating

Updated: 2014-05-13

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China's National Development and Reform Commission and the Ministry of Finance recently issued its 2014-16 alternative project plans approved by the State Council for utilization of Asian Development Bank (ADB) loans.

East China's coastal city of Qingdao's ‘Smart Low-carbon Regional Energy System Revamp and Expansion Project' was adopted in the plan, obtaining long-term low-interest loans worth $130 million, which account for half of the project's total cost and 11.5 percent of ADB's total new lending for the 2014-16 period.

Among China's planned nine projects applying for ADB's new lending, the Qingdao project was the only one located in East China and also the only project in the energy field. It also marked a historical breakthrough for Qingdao city in making use of loans provided by international financial institutions.

Qingdao's ‘Smart Low-carbon Regional Energy System Revamp and Expansion Project' is a key heating project the city has planned, and Qingdao's Taineng Group is responsible for its construction.

The project covers a total area of 238 square kilometers, with an estimated investment of 1.6 billion yuan ($260 million). Construction of the project will start in 2015, and by 2018 when it is completed, it will provide Qingdao with a heating capacity of 863 MW, making up half of the city's planned heating supply generated from clean energy and renewable energy sources, and which can meet the heating needs for a total of 14.35 million square meters required by residential and industrial users.