New WB lending for energy sector

The World Bank said yesterday it has approved a plan to provide $440 million in loans to finance China's energy sector projects, accounting for about one-third of its budgeted 2008 lending to the country.

The funding would support the energy efficiency-financing project - co-financed by a $13.5 million Global Environment Facility grant - the Shandong flue gas desulfurization project and an infrastructure project in Liaoning province's second-tier cities.

"Improving energy efficiency is critical to China's ability to sustain economic growth and protect its environment," World Bank country director for China David Dollar said. "It is also a priority area for the World Bank's work in China."