The objective of the Shanxi Coal Bed Methane Development and Utilization Project is to increase the production and utilization of Coal Bed Methane (CBM) and Coal Mine Methane (CMM) to replace coal as a fuel for thermal use and to reduce Green House Gas (GHGs) and local air pollutants associated with coal combustion in China. Project has two components: (a) Investment Component, to finance the exploration and development of CBM wells and construction of a Liquefied Natural Gas plant; and (b) Technical Assistance Component, which includes two sub-components: (i) a program to assist the project entity in developing its capacity to construct and operate the facilities efficiently and safely, and to expand business activities in the area of CBM/CMM development to achieve long term financial sustainability; and (ii) a program to assist the key stakeholders in Shanxi Province to enhance their institutional and technical capacities for policy making and implementation to scale up the CBM/CMM industry in Shanxi.