The objective of the Shanxi Gas Utilization Project for China is to increase gas utilization to reduce greenhouse gases emission in selected counties in Shanxi province. There are three components to the project, the first component being distributed Gas-fired Combined Heat and Power (CHP) plants. This component includes two investment sub-projects with the same size: Baode 3x42MWe and Xiyang 3x42MWe gas-fired CHP plants and affiliated facilities. Both sub-projects are green-field power plants and will be built for power generation and heating supply to the adjacent county level cities (Baode and Xiyang County City). The second component is the expansion of the gas distribution network. This component includes four investment sub-projects in the four county cities in Xiangyuan, Changzhi, Tunliu, and Qingxu counties. The sub-projects would install pipelines and pressure regulating stations in the four counties to expand the gas distribution network to residential, commercial, and industrial consumers. The sub-project would also establish Supervisory Control and Data Acquisition (SCADA) systems to monitor the operation of each gas distribution network. Finally, the third component is the technical assistance. A technical assistance component is included to mitigate the risks related to project design and management, covering activities for capacity building and technical support to the implementing agencies, as well as activities to upgrade the provincial gas network system.