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A loan of US$150 million to water supply and sanitation projects in central China's Henan Province has been approved by the World Bank's Board of Executive Directors, according to Xinhua report Sunday.

The projects aim to improve water supply and wastewater management in 38 towns under 12 municipalities of Henan Province, through the construction of water production facilities, water distribution networks, wastewater collection pipes and wastewater treatment facilities, said the bank.

The projects are part of the first group of the bank's major projects targeted to support rural towns' efforts to cope with rapid urbanization -- a key development challenge given that around 70 percent of rural-urban migrants over the coming decade are expected to settle in towns rather than in big cities.

According to the bank, the projects will address issues of water shortage, and will provide technical assistance for institutional development including regional planning for rural town development, water sector regulations, and project management and utility staff training.

(Xinhua News Agency July 2, 2006)