The Asian Development Bank (ADB) is to inject cash for the construction and operation of a coal-fired integrated gasification combined cycle (IGCC) power plant in China (PRC).
The bank is providing a $135m loan for 26 years to build the 250MW IGCC plant in Tianjin City, that will generate up to 1,470GWh of electricity per year.
The $419.59m project is one of the first projects undertaken by China under a clean coal power generation programme GreenGen to reduce pollution and lower carbon emissions.
ADB will also offer $1.25m in technical assistance for the second and third phases of the programme to scale-up IGCC plant with carbon capture and storage technology by 2013, it said in a statement.
The bank will also grant $5m to reduce risks and lower costs from its Climate Change Fund to support component suppliers during the initial operation and maintenance phase.
The loan component is due for completion by June 2012, and the grant component by June 2015.