China coal cities secure US$310m ADB loan to revitalise economies
Shanghai
FOUR cities in north-east China have secured a loan of US$310 million from the Asian Development Bank (ADB) to revitalise their economies, the bank said on Tuesday, two years after mass layoffs at local coal mines triggered unrest in the region.
The cities of Hegang, Jixi, Qitaihe and Shuangyashan - in north-east China's Heilongjiang province - were the major casualties of a 2015 decision by state-owned Longmay Group to slash coal production, close depleted mines and lay off as many as 100,000 local workers, part of nationwide efforts to tackle overcapacity and shore up prices in the sector.
The ADB loan to the four cities will be used in a project worth a total of US$1 billion that is designed to support the development of small to medium-sized enterprises and help tackle environmental damage caused by decades of coal mining, the bank said in a statement.
The European Investment Bank will contribute US$220 million to the project - scheduled to be completed in early 2023 - and local banks and government departments another US$491 million. REUTERS
