JINAN - Jinan, capital of East China's Shandong province, has been granted a $150 million loan from the Asian Development Bank to build an urban transit system.

The loan is to finance a green trolley bus project, the Shandong provincial department of finance said. Total investment of the project is 2.7 billion yuan ($411 million).

It aims to develop a modern trolley bus network and to improve urban transport environment in Jinan, by reducing emissions and congestion in the city.

Jinan has a population of 7.2 million, but development of downtown underground metro lines have been restricted by the city's numerous springs, making modern bus services more important.

Jinan ranked as the country's most congested city during the first quarter of 2016, followed by Beijing and Hangzhou, according to a report by map service provider AMAP and a Tsinghua University transport research center.

"Through the project, we aim to build a zero-emissions urban transit system while protecting the environment and culture of the city," said Li Xuechun, director of international cooperation at the department.