The World Bank said Wednesday its Board of Executive Directors has approved a loan of 100 million US dollars to China to finance south China's city of Liuzhou to improve its wastewater treatment and sanitation management.

The Liuzhou Environment Management Project aims to help improve environmental conditions in the city by improving wastewater treatment, industrial pollution control, municipal sanitation and solid waste services and management, the bank said.

"This project targets wastewater and sanitation deficiencies in Liuzhou, a city in Western China's Guangxi Autonomous Region," the bank said in a statement.

Greater Liuzhou has over a thousand industrial enterprises and is Guangxi's largest industrial center. The city's current population of 1.2 million is expected to reach 1.8 million by 2020, straining its already burdened water, sewer, and sanitation infrastructure.

The bank identified protecting water quality, ensuring sanitation and managing solid waste as the major environmental challenges the Chinese city faces.

Liuzhou's principal water source for industrial, commercial, and residential use is the Liujiang River, which is polluted because industries and the city drainage system directly discharge into it significant raw sewage and rainwater, the bank said.

The Liuzhou Municipal Government has taken steps to address its water pollution problem, setting targets that by 2010 at least 70 percent and by 2020 at least 90 percent of all urban wastewater will be adequately treated, but its existing facility can treat a mere 15 percent of total municipal wastewater, according to the statement.

The city recently decided to establish an autonomous wastewater utility company, and is adopting comprehensive industrial wastewater pollution control policies. The government is also preparing a new Discharge Permit System that will limit industrial discharges to pre-specified volumes.

The strength of the Liuzhou Project is that Liuzhou Government is addressing the waste water pollution problems by adopting a comprehensive policy framework such environmental regulatory reforms and industrial relocation in addition to the major investments in waste water treatment and sanitation facilities, it said.

Hiroaki Suzuki, World Bank Task Manager for the Project, said "This comprehensive approach can be considered as one of the best practices which can be replicated by other Chinese cities."

The Project plans to assist the Liuzhou Government in addressing these issues by developing autonomous public utilities and helping develop their institutional structures, financial systems and operational processes.

It also plans to introduce regulations and reforms of industrial pollution control; and investing in sewer networks, wastewater treatment plants, public toilets, solid waste transfer station and waste collection stations.

The loan for the Liuzhou Environment Project carries standard LIBO-based variable rate, or one that is based on variable London InterBank offered Rate, and has a maturity of 20 years, including a five year grace period, according to the statement.

Source: Xinhua