The government's objective for this project is to enhance the quality of life of the rapidly increasing urban population and to enhance economic competitiveness to sustain economic growth in Wuxi and Suzhou, key municipalities in the Taihu Lake Basin and the Yangtze River Delta economic region, by alleviating degradation of water resources and improving the quality of urban environment.

To meet this objective, the project is designed to increase the capture and treatment of wastewater in core cities in the Basin and the rapidly industrializing suburban districts through physical investments and institutional and financial reforms that will enhance the viability and sustainability of wastewater systems, particularly in these rapidly developing districts.

The project will support rehabilitation and water quality improvement in several urban and district canal and river systems through physical investments and improved water management.

In addition, it will support lakeshore rehabilitation around Wuli Lake as a new development and amenity area for Wuxi City. Finally, the project will seek to strengthen water resource protection in the Taihu Lake Basin through improved and integrated planning, water quality monitoring and environmental management. The project design therefore reflects the core elements of the Bank's Urban Strategy -- livability, good governance, competitiveness and bank ability.

(China.org.cn August 4, 2004)