China - Henan Towns Water Supply and Sanitation Project

Page 1 PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB1936 Project Name HENAN TOWNS WATER SUPPLY AND SANITATION PROJECT Region EAST ASIA AND PACIFIC Sector Water supply (50%);Sub-national government administration (30%);Sanitation (20%) Project ID P081348 Borrower(s) PEOPLE'S REPUBLIC OF CHINA Implementing Agency The Henan Finance Bureau, No. 27, Jing San Road, Zhengzhou, Henan Province, China Tel: (86-371) 580-8032 Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared November 7, 2005 Date of Appraisal Authorization November 2, 2005 Date of Board Approval June 1, 2006 1. Country and Sector Background Industrial and urban development of rural areas has been the major part of remarkable economic growth of China. As a result, the number of towns increased from about 3,000 in 1980 to about 20,000 in 2003, and about 400 towns have grown into full-fledged cities. Henan is the most populous province of China, with a population of about 97 million. It covers the central plain fed by the Yellow and Huai Rivers and is a key agricultural region, historically considered as the core of the nation. One of the key issues for the towns of Henan is insufficient and polluted water supply. The province is relatively poor, with the per capita income of Yuan 6,436, about 75% of the national average. The provincial government has made the acceleration of urbanization as a key development strategy, a crucial part of which is the development of major towns. 2. Objectives The project