Separately, the AIIB has agreed to provide a loan of $46.7m for the construction of a 100MW wind farm in southern Kazakhstan
The Asian Infrastructure Investment Bank (AIIB) has agreed to provide $500m financing for the construction of a liquefied natural gas (LNG) terminal in China.
The funding from the bank will be used in the building of LNG receiving, storage and regasification facilities at an LNG terminal in Binhai district in the northern port city of Tianjin.
Once completed, the project will lessen coal consumption by nearly 11.9 million tonnes annually and help improve air quality by offsetting coal combustion-related emissions in Beijing, Tianjin and Hebei province in the country.
The project, which is AIIB’s first sovereign-backed financing in China, be carried out by Beijing Gas Group Company.
AIIB vice-president and chief investment officer DJ Pandian said: “The project will support China’s efforts to fulfill its commitments under the Paris Agreement, and strengthen and contribute to the global response to the threat of climate change.
“It aligns well with AIIB’s commitment to sustainable energy for Asia and reducing the carbon intensity of energy supply.”
AIIB to fund 100MW wind farm in Kazakhstan
The AIIB has agreed to provide a loan of $46.7m for the construction and operations of a 100MW wind farm in southern Kazakhstan.
Located nearly 9km southwest of Zhanatas in the southern Zhambyl region, the wind facility will generate approximately 319GWh of electricity per annum and offset 260,623 tonnes of carbon dioxide.
AIIB vice-president and chief investment officer DJ Pandian said: “Our investment in the largest wind power plant in the region reflects AIIB’s support for the Government of Kazakhstan’s transition to a ‘green economy’ which will advance efforts to meet the country’s commitments under the Paris Agreement.”
The project is supported by a memorandum of understanding between AIIB and the Ministry of Energy of the Republic of Kazakhstan, which laid the foundation for greater cooperation on renewable energy project financing.
In July, the AIIB agreed to provide a $100m loan to Indian company L&T Infrastructure Finance, a subsidiary of L&T Finance, to support the deployment of renewable energy in the country.