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On December 14, the board of directors of Asian Development Bank (ADB) approved a loan of US$499 million to the Chinese government for setting up a regional emission-reduction and pollution-control fund to improve air quality in the Beijing-Tianjin-Hebei region, which is managed and administered by CECEP. Establishing a fund to use ADB loans marked a significant innovation in the use of sovereign loans from an international financial organization.
Beginning in 2015, the Capital Holdings Co., Ltd. and Huayu Fund Management Co., Ltd. under CECEP, the principal performers of the project, spent nearly three years preparing and establishing the fund. During the period from 2015 through 2020, ADB should provide a policy-based loan not exceeding US$500 million each year to help China tackle the daunting problem of air pollution in the Beijing-Tianjin-Hebei region. As part of a years-long, multi-sector support program, the fund is expected to contribute to the improvement of air quality in the Beijing-Tianjin-Hebei region and generate considerable social benefits.
CECEP has pledged to manage the fund in a sound and prudent manner, carefully select investment projects, constantly optimize the business model, continuously improve capital functions and promote advanced environmentally friendly technologies to reduce pollution emissions and improve air quality in the Beijing-Tianjin-Hebei region, so as to propel coordinated development of Beijing, Tianjin and Hebei and explore a long-term mechanism for air pollution prevention and control for the country.
