The Asian Development Bank (ADB) is helping China enact wide-ranging, integrated measures in Guiyang, the capital of Guizhou province, one of the poor western provinces in PRC, to tackle growing water shortages caused by rapid growth and urbanization. The bank has approved a US$ 150 million (€ 101 million) loan that will finance a portion of Guiyang Municipality’s water sector development plan through to 2020. "The project will provide extensive water resource benefits to about 1.6 million residents, or 45% of the total population of Guiyang Municipality, with about 240,000 poor rural dwellers getting access to safe drinking water", said Zhang Qingfeng, Senior Water Resources Engineer in ADB’s East Asia Department.

An innovative feature of the project is the introduction of a payment for environmental services scheme that will provide a financial incentive to reduce pollution and make environmental improvements in areas where water supply reservoir work is being undertaken. Along with ADB, Guiyang Municipal Government is providing US$ 258 million (€ 173 million) equivalent, Guiyang Municipal Commercial Bank US$ 20 million (€ 13.4 million), and project beneficiaries US$ 11.2 million (€ 7.5 million) in the form of labour contributions, for a total investment cost of US$ 439.2 million (€ 294.8 million).

Project web site: ADB - Guiyang Integrated Water Resources Management Project

Source: ADB, 30 Oct 2009

Tags: east asia & pacific, financing, water resources management, water supply