The World Bank has approved a US$128 million loan and a US$10 million grant from the Global Environment Fund to China to help finance the Guangdong Pearl River Delta Urban Environment Project.

The broad objective of the project is to provide a safe environmental setting for the long-term development and improved livability for residents in the Pearl River Delta region.

The project would assist Guangdong Province in implementing its PRD Clean Up Campaign calling for the investment of RMB45 billion over the next eight years in waste water treatment and other environmental facilities. This project is expected to be the first in a series of World Bank backed environmental initiatives in the PRD region.

Water quality in many stretches of the Pearl River and its tributaries, particularly around Guangzhou, Shenzhen, Foshan and Dongguan, is worse than Class V standard, which makes the river system unsuitable for irrigation, aquaculture, and potential recreational uses. This also contributes to serious pollution of the South China Sea and the waters around Hong Kong and Macao.