After three billion yuan (approximately 375 million U.S. dollars) of investment last year, Beijing will spend another 2.8 billion yuan (350 million U.S. dollars) in 2006 to increase the number of environment-friendly buses.

A source with Beijing Public Holdings Ltd. said the fund will be used to purchase 3,485 of the buses. Feng Xingfu, deputy general manager of Beijing Public Transport Holdings Ltd, said 3,485 buses will be purchased, including 1,000 powered by natural gas, 200 Euro 4 standard diesel vehicles, 2,185 Euro 3 standard diesel vehicles and 100 double-energy-source electric buses.

The aggregate number of buses in Beijing is expected to reach 20,427 by the end of this year, in which 13,252 will be environment-friendly ones, accounting for 64.9 percent of the total, Feng said.