Water and Sanitation Project to Clean Up Environment of Nanjing, China
MANILA, PHILIPPINES - ADB will help clean up the environment of the city of Nanjing, the People’s Republic of China (PRC), through a US$100 million loan for a project to manage and protect the city's water resources. The project, an integrated part of wider water resource initiatives being carried out by the PRC authorities for the Qinhuai River and Nanjing City, as well as the Yangtze River Basin, will reduce water pollution, help prevent flooding, and improve the urban environment. Rapid economic growth over the last two decades has placed increased pressure on Nanjing's environment and city infrastructure. The Qinhuai River that flows through this city of 4.5 residents has deteriorated significantly mainly due to wastewater discharge. Heavy rainfall places the urban drainage system under pressure, causing sewers to overflow and flooding. The situation is aggravated by siltation in the river’s tributaries, which in some places are completely blocked. The project will provide an extra 10% capacity critical to achieving the city’s target for 2010 of treating 85% of the wastewater generated. There are 10 major activities planned under the project, tackling sewerage and water replenishment, wastewater treatment, stormwater drainage, sludge treatment and disposal, and institutional development. “All aspects of the project will contribute significantly toward improving water quality of the Qinhuai River, which empties into the Yangtze,” says Sangay Penjor, an ADB Principal Financial Analysis Specialist. “Living conditions and public health standards of about 2.7 million city residents will improve as a result of the reduced pollution and flooding.” The project will also create at least 450 full-time permanent jobs with the operators of the wastewater facilities and 6,000 person years of labor during the five years of construction. ADB’s loan, which accounts for 42% of the project cost, comes from its ordinary capital resources and carries a 25-year term, including a grace period of five years. Interest is determined in accordance with ADB’s LIBOR-based lending facility. The Nanjing municipal government and China Development Bank will contribute about $81 million and $55 million, respectively, toward the total project cost of $236 million. The Nanjing municipal government is the executing agency for the project, which is due for completion around the end of 2011. About ADB | 
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