US$100 Million Loan to Help Improve Urban Environment in Nanning City, PRC
MANILA, PHILIPPINES - A US$100 million loan will help enhance the urban environment and public health in Nanning City, the capital of the Guangxi Zhuang Autonomous Region in the People’s Republic of China (PRC). In recent years, the city has experienced rapid economic growth along with a booming urban population. It is addressing three major development opportunities - its role as a gateway to the landlocked southwestern region of the PRC, its designation as a target city under the Government’s Western Region Development Strategy, and its role as a gateway to Southeast Asia. Nanning, however, suffers from inadequate flood protection for new urban areas, poor wastewater and solid waste management, and degradation of the green environment throughout the city. “To accelerate social and economic development, improve the quality of life for urban residents, and upgrade the urban environment, basic urban infrastructure and services need to be expanded and upgraded in Nanning City,” says Eri Honda, an ADB Urban Development Specialist. The project comprises four subprojects that together will improve flood control, wastewater and solid waste management, and expand the city's green environment. It will construct and rehabilitate embankments, create permanent lakes to serve as flood storage, and install sewerage pipelines and pumping stations around the Xinxujiang River and Kelijiang River, which both suffer from gross pollution levels due to uncontrolled wastewater and solid waste discharge. It will strengthen the city’s domestic solid waste management and improve cleanliness of the streets by constructing transfer stations and providing waste management and street cleaning equipment. Last, it will improve the environmental conditions and facilities of Qingxiushan Park, a major tourism and recreational center in the city, through reforestation, provision of a seedling base and forest protection facilities, and construction of sewers systems and pumping stations, among others. More than three million residents will benefit, of which about 217,000 are poor. The incidence of waterborne and vector-borne diseases is expected to be reduced by 10% from the 2004 level. The total cost of the project is estimated at $262.6 million. ADB’s loan, which covers 38% of the total cost, comes from its ordinary capital resources. It carries a 25-year term, including a grace period of 5 years. Interest will be determined in accordance with ADB’s LIBOR-based lending facility. The Municipal Government of Nanning, the project’s executing agency, will shoulder $151.6 million of the project cost, while loans from local banks will cover the balance of $11.1 million. The project is due for completion around December 2010. About ADB | 
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