The Asian Development Bank (ADB) has approved a 100 million US dollar-loan to help improve the urban environment, the public health and quality of life in the Chinese province of Jilin, said the bank in a news release Tuesday.

The project is aimed at increasing wastewater coverage, boosting the supply of potable water, and improving management and utilization of water resources in the upper Songhua River Basin, said ADB.

The project will improve the environment, living conditions, and public health standards in the cities of Changchun, Liaoyuan, and Meihekou by reducing water pollution, protecting water resources, and addressing water shortage through recycling effluent, said ADB.

It will expand the currently inadequate wastewater treatment and sewerage system in Changchun, the capital of Jilin province, which would significantly reduce pollution in the Yitong and Yongchun rivers which flow into the Songhua River, while helping control floods from the Yongchun River, said ADB.

A water treatment plant with a pumping station to extract water from the Shuanyuang reservoir will be constructed to improve and expand the water supply system of Shuangyang district, located 46 kilometers southeast of Changchun. The district's current drinking water source is groundwater, which is depleting the aquifer beneath the city resulting in land subsidence, according to ADB.

In Liaoyuan, where the aging water treatment and distribution system is suffering from persistent corrosion, two water treatment plants and the distribution network will be upgraded, along with the aging drainage and sewerage network.

In Meihekou, where groundwater sources of drinking water are no longer sufficient, a water treatment plant and a raw water transmission pipeline from the Hailong reservoir will be constructed.

"About 3 million urban residents will benefit from the improved water supply and wastewater services in Jilin," says Sangay Penjor, an ADB Principal Financial Specialist.

"The provision of clean water will lessen household spending on buying water from private sources, and reduce the incidence of waterborne diseases, such as diarrhea and hepatitis A, resulting in greater productivity," he said.

Aside from the direct benefits to urban households, the project will help control pollution in the rivers flowing into the Songhua River Basin.

The Yitong and Yongchun rivers in Changchun, which flow into the Songhua River Basin, are highly polluted due to inadequate wastewater treatment in Changchun, said ADB.

"This project would be the first major ADB intervention in directly addressing pollution control in the Songhua River Basin," said Mr. Penjor. "Rapid economic growth and urbanization have led to water pollution and water scarcity becoming major problems."

ADB said it is developing an integrated plan and an immediate action plan for pollution control in the Songhua River basin through an ongoing technical assistance project.

ADB's loan, which will cover 43 percent of the project's total estimated cost of 232.2 million US dollars, comes from its ordinary capital resources. It carries a 25-year term, including a grace period of five years. Interest will be determined in accordance with ADB's lending facility.

The municipal governments of Changchun, Liaoyuan, and Meihekou will finance 126.4 million US dollars, and the balance of 5.8 million US dollars will be financed with borrowing from the Commercial Bank of China.

The Jilin Provincial Government is the executing agency for the project, which is due for completion in December 2009, said ADB.

Source: Xinhua