BEIJING - The Asian Development Bank (ADB) on Tuesday signed a $75 million loan with China's Everbright Financial Leasing (EFL) to put more low-emissions buses on city roads in China.

The agreement was signed by Michael Barrow, director general of ADB's private sector operations department and EFL's vice-president Shi Jingbin, the ADB said in a statement.

"The agreement signed today with EFL will increase the quality of life for commuters, improve air quality, and reduce overall carbon emissions," said Barrow.

The Clean Bus Leasing program is proof that the private sector has a critical role to play in environmentally sustainable transport solutions in China, he added.

The project will finance leased buses that run on cleaner fuel, including compressed natural gas and liquefied natural gas, as well as electric and hybrid buses, said the ADB.

The project aims to put 5,000 clean buses on the roads by 2018, helping China avoid 1.31 million metric tons of greenhouse gas emissions per year. The program is ADB's first non-sovereign loan program to support sustainable transportation in China.

Established in June 2010, EFL is affiliated with China Everbright Group, a financial conglomerate that has business interests in banking, securities, insurance and asset management.