(MENAFN- Qatar News Agency) The Asian Development Bank (ADB) has signed an agreement in partnership with 18 banks to support a water supply and distribution project of the China Water Affairs Group (CWA), which aims to improve access to water in underserved areas.
The US$200 million B-loan signed today expands ADB's financing to the project, which includes an ADB direct loan of $100 million signed in May 2014, to reach a total commitment of $300 million. Under the B-loan structure, ADB acts as lender of record for loan funds provided by commercial banks, ADB press release said.
"The project builds on the success of ADB's earlier partnership and cultivates a new frontier through urban-rural distribution network integration," said Hisaka Kimura, East Asia Unit Head of ADB's Private Sector Operations Department. "For rural areas to be linked into an enlarged urban network, water quality, service hours and tariffs are improved to match those of urban consumers.
Our partnership with 18 banks will allow the operation to reach beyond its existing service areas to provide good quality, affordable water supplies to semi-urban and rural communities in need." The People's Republic of China has made great strides in improving access to quality water but there are sharp imbalances in access to reliable piped water with over half of all rural residents lacking basic household tap connections. With support from ADB, CWA is helping upgrade water management systems and assisting the government in its goal to close the rural water gap.
Under the project, China Water Affairs Group, a pioneer private sector operator in water distribution, will expand existing distribution networks into semi-urban and rural areas to provide household connections to tap water 24 hours, 7 days per week, and to build, acquire and rehabilitate water treatment and distribution hubs in second- and third-tier cities, which have the potential for urban-rural integration.
"Around 740,000 households will benefit from the project," added Kimura. "By improving water efficiency throughout distribution, the project will also help conserve water, one of the most precious resources in the PRC." ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members, 48 from the region.
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