The objectives of the Liaoning Third Medium Cities Infrastructure (LMC3) Project for China are to improve quality and efficiency of urban heating supply and gas services in selected medium cities of Liaoning Province. This restructuring paper seeks RVP approval of the following changes to the project, which constitute a level two restructuring: (i) adding two new subprojects, Chaoyang central heating subproject and Yi Xian Central heating subproject to part A of the project; (ii) reallocating loan proceeds between categories; (iii) extending the project closing date from December 31, 2014 to June 30, 2016 to ensure that the implementation of the project can be fully completed and results captured; and (iv) adjusting several targets in the results framework to account for the new components and implementation schedule.