China said on Friday that it will provide a concessional loan of up to $1 billion to Pacific island nations to support major project construction.

The announcement was made by Chinese Vice Premier Wang Yang in his keynote speech at the second China-Pacific Island Countries Economic Development and Cooperation Forum held in Guangzhou, capital of south China's Guangdong Province.

Wang also announced a set of measures to boost economic and social development in the Pacific islands, including establishing a special loan of $1 billion for infrastructure construction, offering 2,000scholarships over the next four years to help Pacific island nations train talents, continuing to build medical facilities, sending medical teams to the countries, and providing medical equipment and medicine.

China will support the agricultural development of the Pacific island countries, enhance produce-processing and trade cooperation and build cooperative projects such as demonstration farms, said Wang.

China will also support the island countries' efforts on environmental protection and build them an array of green energy projects, including solar, hydropower and methane, said the vice premier.

Stressing that China understands the special situation and pursuits of the island countries on climate change, Wang said China is willing to conduct cooperation on green development to improve their ability to cope with climate change.

Representatives from Micronesia, Samoa, Papua New Guinea, Vanuatu, the Cook Islands, Tonga, Niue and Fiji attended the forum.

The first forum was held in Fiji in 2006.