The Chinese and Dutch governments will jointly invest nearly 40 million Euros (US$40.049 million) over a five-year period to improve the urban environmental infrastructure in China's western areas.

The Chinese Ministry of Construction (CMC) and the Netherlands Embassy in China signed an agreement in Beijing Thursday, targeting the development and application of feasible technologies to aid the environmental infrastructure in western China's small cities.

According to the agreement, effective from 2003 to 2008, China and the Netherlands will jointly invest 39.46 million Euros (US$39.51 million) to solve the issues of water supply, sewage treatment and garbage collection in the cities. Of the funds, some 14.96 million Euros (US$19.49 million) will be provided by the Netherlands.

Experts from the two countries will participate in finding a proper model for developing western China's small cities, by drawing from the experiences of both the Netherlands and China's developed eastern areas.

Eleven small cities in southwest China have been chosen to carry out the project, and their successful experience will be followed by other small cities in the west.

CMC vice minister Qiu Baoxing said at the signing ceremony that the cooperation will help China introduce the Dutch concept of sustainable development and advanced technology and experience in environmental infrastructure.

Qiu said the project will solve the problems of sewage and waste pollution and the safety of drinking water for 500,000 residents in the 11 trial locations, which will directly benefit the cities' 130,000 poor without increasing their burden.

The project will help improve the western region's environment and infrastructure, decrease poverty and achieve sustainable development, Qiu said.

Philip De Heer, the Netherlands ambassador to China, said the project is of importance as it will promote sustainable development and eliminate poverty in China's vast western region.

The exchanges and cooperation between the Netherlands and China have been increasing and will bear more fruits in the future, said the ambassador.

(Xinhua News Agency December 5, 2002)