The Asian Development Bank (ADB) has agreed to provide a 100 million U.S. dollar loan to China to help improve urban environment, public health, and quality of life of residents and businesses in central China's Wuhan city through better management of its water resources, said the ADB on Monday.

Rapid economic growth and urbanization over the last 25 years have resulted in inadequate urban infrastructure and placed pressure on overloaded facilities in Wuhan, said the ADB in a news release.

The project comprises nine activities covering municipal wastewater management, stormwater management, and development of utilities. It will construct new and upgrade existing wastewater treatment facilities, extend and rehabilitate collection networks, and add larger-capacity stormwater pumping stations.

"The project will provide the 10 percent additional capacity critical to achieving the city's target of 80 percent treatment of the wastewater generated by 2010," says Sangay Penjor, an ADB Principal Financial Specialist.

More than three million urban residents of Wuhan will benefit from reduced water pollution, protection from flooding, eliminated hazards from poor drainage, and reduced incidence of waterborne diseases, said the ADB.

ADB's loan will finance 38 percent of the project's estimated total cost of 266.4 million U.S. dollars. The loan comes from ADB's ordinary capital resources and carries a 25-year term, including a grace period of 5 years. Interest rate will be based on ADB's LIBOR-based lending facility.

Source: Xinhua