The World Bank's Board of Executive Directors approved a loan of US$173 million to China yesterday in support of the Second Liaoning Medium Cities Infrastructure Project. The project is co-financed by the Global Environment Facility (GEF) with a grant of US$5 million.

The Second Liaoning Medium Cities Infrastructure Project aims to assist eight medium-sized cities in the northeast Liaoning Province in improving the performance and sustainability of water supply, wastewater and solid waste services. Enhanced wastewater and solid waste services will also help reduce pollution into the Bohai Sea and contribute to improving Bohai Sea water quality.

The World Bank loan will finance construction or rehabilitation of wastewater collection and treatment facilities; construction of water distribution pipelines, installation of water supply meters, and construction or upgrading of water treatment plants; and construction of new landfills and procurement of solid waste collection and transfer works and equipment. The GEF grant will be used to provide technical assistance in design and construction, public utility improvement program, solid waste master planning and water pollution control planning. The medium-sized cities to benefit from the project include Panjin, Yingkou, Fushun, Anshan, Gaizhou, Haicheng, Yingkou Economic Development Zone and Xingcheng.  

"The project provides an excellent platform for Liaoning to expand its environmental infrastructure as well enhance utility regulation and capacity building. The project will assist in the economic revitalization of Liaoning Province, improve the quality of life in eight cities, and help improve Bohai Sea water quality." said Greg Browder, senior environmental engineer and task leader of the project.

This is the second of a series of three projects supporting medium-sized cities in Liaoning. The First Liaoning Medium Cities Infrastructure Project, approved in June 2006, focused on urban transport. The Third Liaoning Medium Cities Infrastructure Project is scheduled for approval in mid-2008 and will focus on urban heating. The three projects will in total provide around US$600 million in World Bank financing, and continue the World Bank’s long standing development partnership with Liaoning Province.

(China Development Gateway June 27, 2007)