The Asian Development Bank (ADB) has approved a $100 million loan to clean up water resources and the environment of the Sayu River Basin in Yunnan Province, the People’s Republic of China (PRC).

The Sayu River Basin is an important area for ecological protection in the upper Yangtze River Basin. It is the only centralized drinking water source in Zhaotong City in Yunnan.

“Rural domestic wastewater, solid waste, and human and animal waste pollute the water in the Sayu River Basin because of inadequate waste management,” said ADB Principal Water Resources Specialist Yoshiaki Kobayashi. “As Zhaotong is considered a poor city, it urgently needs a sustainable financing mechanism for investments to address water pollution sustainably.”

The project will strengthen wastewater management and pollution control in the river basin and improve water resources management in the Sayu River. It will also establish an eco-compensation mechanism for the Sayu River Basin and strengthen education, capacity, and public awareness for water pollution management.

ADB will finance integrated water pollution management, including innovations such as distributed wastewater management systems with information technology for low-cost operation and management; garbage facilities with a shorter processing cycle, smaller floor space, and maximum volume reduction. It will also pilot eco-villages with community participation; new types of artificial wetlands; quantifiable soil and water conservation model; low-emission agriculture; river protection with innovative information technology and institutional development; horizontal eco-compensation mechanisms; and an eco-compensation fund.

Experience and knowledge gained from the project will be replicated in other small tributaries in the upper and middle reaches of the Yangtze River, which account for 80% of wastewater, and in other key river basins in Asia and the Pacific. The Yangtze River Economic Belt has been earmarked as one of three key growth engines to ensure the PRC’s future economic development.

Total project cost is $234.61 million, of which $134.61 million is provided by the PRC government. The project is expected to be completed by June 2026.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

This news originally appeared on the ADB website.