The Manila-based Asian Development Bank has received approval to provide a USD135 million loan to a green coal power demonstration project in Tianjin to help develop clean coal power system and reduce green house gas emissions and pollution in China.

ADB said that the loan will be used to build a 250MW integrated gasification combined cycle generator for the demonstration project, which belongs to China Huaneng Group. In addition, it will offer USD1.25 million in technological donations to help the project implement carbon dioxide capture and storage technology by 2013.

ADB hopes that the project will act as a benchmark and further enhance the confidence of policy-makers, market investors, and project developers investigating clean coal power projects, as well as promoting the extensive use of clean coal power programs in China.

With a total term of 26 years, the loan is expected to meet 32% of the capital demand of the first phase of construction of the Tianjin project.