1 February 2013: The Asian Development Bank (ADB) has signed a $100 million “B loan” agreement, in partnership with 18 banks, to improve access and water efficiency in small- and medium-sized cities in China by supporting the water utility rehabilitation efforts of the China Water Affairs Group Limited (CWA).

The $100 million B loan is part of the ADB’s larger financing package for the project, totalling $200 million. The project aims to support CWA’s efforts to improve water utilities in the country through actions such as rehabilitating distribution pipelines, installing water meters, and instilling commercial management practices. The B loan structure provides incentives for other banks to partner on the project, by allowing participating banks to share ADB’s “preferred creditor” status.

ADB reports that China is promoting public-private partnerships for the water supply chain, but notes that approximately 90% of municipal distribution networks is owned by local governments. The loan is anticipated to improve access to safe drinking water for five million customers. [ADB Press Release]