An urban environmental project with financial backing from the World Bank is expected to start in Shanghai soon.
The bank's Beijing office said at the weekend that its board in Washington DC has approved a US$200 million loan for the project.
Another two loans will be provided as the scheme progresses over the next eight years, a member of the Beijing office said. But no further details about the two loans were provided.
Keshav Varma, the bank's urban sector director for East Asia, said the project will better protect Shanghai's urban environment and the public's health.
It will improve the city's environmental infrastructure in areas including water resources protection, waste water treatment and solid waste disposal.
The project also promotes the introduction of financial and institutional reform measures for the urban environmental infrastructure sector. The highlight of the financial reform is a scheme for the issuance of long-term infrastructure bonds.
Geoffrey Read, the bank's project task manager, said: "It will assist the Shanghai government's efforts to become an international economic and trade center with the highest standards of urban environmental quality - which will both enhance the quality of life of its citizens and help Shanghai continue to attract high-quality foreign investment."
While the city made substantial progress over the last decade to restructure its economy and upgrade environmental infrastructure, persistent problems remain.
Some 3 million of the urban residents live in very crowded conditions, with inadequate access to drinking water and sanitation. According to the World Bank, only 40 percent of sewage is treated and safely disposed of.
(China Daily June 23, 2003)
