The project is the first stage of Liaoning's efforts towards fulfilling its objective of improving the environment of the Liaohe River Basin.

The total cost of the project would be US$203.6 million. The local governments at different levels will finance the remaining costs.

The main investments will be in two cities - Jinzhou and Panjin - and in one paper-making company in the lower reaches of the Liaohe River. Money will also be put into Yingkou and a paper-making company in an adjacent river basin close to the Bohai Sea.

The second stage of the project is expected to commence in about a year's time.

Plans are to focus on the province's capital, Shenyang, situated on a tributary of the Liaohe River.

Benefits of the project will include improved water quality in rivers that are currently highly polluted; reduced incidence of water pollution-related diseases as a result of improved sewer systems and reduced surface and groundwater pollution near water intakes.

"It will generate benefits in terms of improvements in environmental quality, health, municipal services and institutional capacity," said Geoffrey Read, task manager for the project.

Improving the environment - and in particular water quality - in the major river basins is one of the major focal points of the World Bank's strategy in China, bank officials have said.

(China Daily 06/21/2001)