The Asian Development Bank says it has signed a loan agreement with a Chinese company for waste-to-energy projects to reduce the environmental impact of agricultural and municipal waste disposal.

The ADB said in a statement Monday that four loans of up to $200 million will be provided to two units of China Everbright International Limited to install agricultural and municipal waste-to-energy capacity.

The project aims to treat about 7,300 tons of waste a day, generating around 1,240 gigawatt-hours of electricity a year by 2016. In addition, greenhouse gas emissions are expected to be slashed by about 638,000 tons per year by 2018.

The program will also provide additional income for farmers, who sell agricultural waste.