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 is estimated to be implemented over five years. People’s Government of Shengzhou Municipality will be the Project Implementation Agency. Contractors for the Project will be 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 preservation and environmental protection by the local residents. Successful completion of the Project will have a significant development impact on improving the quality of lives of local residents in Shengzhou. The Project has been categorized as Category “B” in line with NDB Environmental and Social Framework (ESF) and China’s environmental impact assessment regulations. Main project environmental and social impacts include land acquisition and potential resettlement, wastewater discharge and sludge disposal. These impacts are confined to project footprint and will be mitigated by adherence to requirements of E&S country system.