MANILA (AFP) -- The Asian Development Bank (ADB) is to lend and invest a total of 214 million dollars in China's airports, its first foray into the sector, the Manila-based financial institution announced Saturday.

The move is part of a project to develop the economy in China's western region and mobilize private sector funding for its airports so that local governments can channel funding into social welfare program, the ADB said.
The ADB will make a 50 million dollar equity investment in HNA Airport Holding Group Co. Ltd., a private company primarily involved in the privatization of China's airports.
The ADB will also extend a loan of 1.2 billion yuan (164 million dollars) to the project, with risk participation from international banks.
Commercial banks in turn will lend another 200 million dollars to the project, the bank said.
The ADB investment in HNA Airport Group will “secure the confidence of international investors and attract more funds to continue expanding in the airport sector,” it said.
The bank noted that foreign operators in China largely focus on large airports in the coastal region, leaving only local investors to operate small- and medium-sized airports.
But such investors tend to have limited financial resources, restricting their capabilities, the ADB said.