MANILA, PHILIPPINES - More public buses with lower greenhouse gas (GHG) emissions will soon be deployed on the roads of major cities in the People's Republic of China (PRC) as the Asian Development Bank (ADB) helps bus operators shift their fleets to cleaner fuel.
ADB has earmarked $275 million for up to five top-tier financial leasing companies in PRC to finance leased buses that run on cleaner fuel - such as compressed natural gas (CNG) and liquefied natural gas (LNG) - as well as electric and hybrid buses.
"This program will help roll out more green buses onto the streets by easing the funding bottleneck of financial leasing companies and bus operators," said Philip Erquiaga, Director General of ADB's Private Sector Operations Department. The program will provide critical long-term finance and may help leverage cofinancing to promote the development of clean bus leasing business in the PRC.
The program is expected to finance the leasing of at least 5,000 clean buses by 2018. From 2019, the program will help avoid GHG emissions of 1.31 million tons per annum.
Several leasing companies have shown significant interest in participating in the program. ADB, through its contacts with provincial and local governments, is also helping leasing companies reach potential clients who are adding clean buses to their fleets.
The expansion of "green" bus services will directly benefit millions of low-income commuters, improve air quality and reduce GHG emissions.
The program is ADB's first nonsovereign loan program to support sustainable transport in PRC, and is fully in line with the $175 billion commitment of multilateral development banks made during the Rio+20 Summit for transport in developing countries from 2012 to 2022.