The city has managed to remove its smell and has beautified the landscape with an investment of about 20 billion yuan (US$2.42 billion).

The creek's water quality has reached the fifth level of national classification now that the first phase of a rehabilitation project has been successfully completed, city leaders announced yesterday.

By 2010, the river will become a totally approachable and pleasant waterway for sightseeing. Nearby residents will especially benefit from the view.

"The second phase of the project will focus on the improvement of the water quality by stopping pollutants at their source and monitoring the water system," said Shanghai Mayor Han Zheng.

The second phase will start soon and is the top priority of the second round of the city's three-year environmental plan.

More landscaping of the creek's banks and bridges is another key component, but the achievements of the first phase have to be consolidated because the rehabilitation is a long-term project, Han said.

In the first phase, started in 1998, 2,529 pollutant sources were plugged, nine garbage wharfs and 19 cargo docks were removed, 72 kilometres of anti-flood walls were revamped and 88,000 square metres of green lands were reclaimed.

The former two-way flow has been changed to one way by using dams and other facilities, which enhances the self-cleaning capacity of the river.

The Shidongkou Sewage Treatment Plant, put into operation yesterday with the capacity to handle 400,000 tons of sewage daily, treats the sewage gathered from the creek's trunk and major branches.

The first phase of the creek's clean-up cost about 6 billion yuan (US$726 million), the majority of which came from bank loans, according to Gao Guofu, general manager of the Shanghai Urban Construction Investment & Development General Corporation, an investor.

"The financing of the future work will be tilted more towards the market. Socially-conscious investors are welcome to take part in this environmental campaign," Gao said.

Gao added many potential investors have shown interest in this grand project, encouraged by the city's great prospects and the tourism potential of the river.

(China Daily January 9, 2003)