The Project finances the construction of four water supply plants, three sewage treatment plants, associated pipelines and a smart water management center, thereby fostering socio-economic development of Shengzhou Municipality. The Project has four components: (i) construction of water supply plants and pipelines; (ii) construction of sewage treatment plants and pipelines; (iii) smart water management center; (iv) capacity building and project management.

The objectives of the Project are to upgrade the urban and rural water supply and sewage facilities and to enhance the economic efficiency of water resources and the effectiveness of water management system in Shengzhou.

The project implementation started in Q2 2019 and all construction work was completed by the end of Q1 2025. All four water supply plants, three sewage treatment plants, and a Smart Water Management Center were operational by June 2024. The People’s Government of Shengzhou Municipality was the Project Implementation Agency. Contractors for the Project were selected through a competitive and transparent bidding process.

The positive impacts of the Project include: (i) improved water quality; (ii) increased water supply; (iii) increased sewage treatment capacity; (iv) enhanced effectiveness of water management system; (v) enhanced awareness of water conservation and environmental protection by the local residents. The successful completion of the Project has a significant development impact on improving the quality of lives of local residents in Shengzhou. The Project was categorized as Category “B” in line with NDB Environmental and Social Framework and China’s environmental impact assessment regulations. The main project environmental and social impacts include land acquisition and resettlement soil erosion, and loss of habitat. These impacts were mitigated by adherence to requirements of E&S country system.

The total cost of the Project at completion is estimated to be RMB 1,144 million, of which RMB 758 million is financed by a NDB  loan , accounting for 66% of the total cost. The remaining balance is financed by counterpart funds from Shengzhou Municipal Government and Shengzhou Water Group Co., and loans from domestic banks.