European Investment Bank (EIB) is to provide a 500 million euros (some 608 million US dollars) loan for the Beijing Airport expansion project, a spokesman from the EIB said on Thursday.

"This would be the largest loan ever provided to China by the EIB and it shows the willingness of the European Union (EU) to enhance economic links with China," Orlando Arango told Xinhua.

The signature ceremony is to be held in Beijing, witnessed by leaders from both China and the EU during a bilateral summit on September 5, said Arango.

Beijing Capital International Airport serves as one of the main gateways to China. The expansion project is one of the key infrastructure investments slated for completion before the start of the Beijing 2008 Olympic Games.

The total cost of the expansion project amounts to 2.3 billion euros (about 2.8 billion US dollars). The EIB loan would be low-interest and the repayment period could be as long as 25 years.

The EIB, the EU's public financing institution, was set up in 1958 to provide loan financing for capital investment which promotes the EU's balanced development. It also lends long-term loans to non-EU countries.

Source:Xinhua