The Asian Development Bank will acquire a 4.88 percent of China Gas Holdings Ltd. for about $25 million and will provide loans of as much as 125 million US dollars to China Gas to help increase the use of cleaner natural gas in China, said the company in a statement. will support China Gas Holdings Limited’s (CGH) plan to establish, acquire, and operate a series of new natural gas distribution projects in municipalities through joint ventures with municipal governments and state-owned enterprises across the PRC. “The project is the first natural gas distribution network project supported by ADB, as well as ADB’s first long-term local currency debt financing in the PRC,” says Jo Yamagata, an ADB Principal Structured Finance Specialist. “ADB’s participation will play an important role, not only by mobilizing additional funds from international banks, but also in attracting private sector investors by improving corporate governance and enhancing the institutional capacity of CGH over the long term.” ADB’s assistance is in line with PRC Government policy to encourage private sector participation in the natural gas distribution sector and to address the shortage of gas distribution, infrastructure and municipalities’ financial constraints. The project will also help improve the environment by promoting the use of natural gas.