The Project supports CGH's investment plan to fund a series of new natural gas distribution infrastructure projects in municipalities in the PRC. The Project aims to develop natural gas distribution infrastructure and address financial constraints faced by municipalities, two key obstacles to natural gas market development in the PRC. The ADB assistance contributed to CGH's investment plan to establish, acquire, and operate natural gas distribution services in municipalities through joint ventures with municipal governments and state-owned enterprises across the PRC. Those joint ventures will provide natural gas distribution services to resident clients, industrial and commercial businesses. The loan funds were channeled to joint ventures by the two CGH wholly owned subsidiaries in the PRC: Zhongran Gas Infrastructure Co (ZIL, formerly CAG) and Zhongran Investment Limited (ZIL).
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