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BEIJING, March 19 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB) signed a natural gas project with a Chinese company Monday to improve the air quality in Beijing.

"It is the common responsibility of the international community, including multilateral development banks, to tackle climate change. With substantial support of the board of directors of the AIIB, this project hopes to contribute to meet this global agenda," AIIB President Jin Liqun said at the signing ceremony.

It marks the AIIB's first loan in China for a natural gas project. The 250-million-U.S. dollar loan will fund a project to connect 216,750 households in approximately 510 villages to the natural gas distribution network.

Upon completion and after subtracting the emissions from burning natural gas, the project is expected to reduce annual carbon dioxide emissions by 595,700 tonnes, particulate matter by 3,700 tonnes, sulfur dioxide by 1,488 tonnes and nitrogen oxide by 4,442 tonnes, according to the statement.

The project, undertaken by the Beijing Gas Group Company, will entail construction of natural gas distribution networks in villages and low-pressure gas pipelines and household connections.