World Bank Loaned Yunnan Environment Project, of which the Loan Agreement signed officially in March 12, 1997. According to the approval of State Development and Planning Commission, the total investment, in which the input of participatory phase is covered, is 2.52 billion RMB, including a loan of 150million USD from the World Bank and local counterpart fund of 1.26billion RMB.

　　 The project was implemented in 3 phases, which are participatory phase from July 1994 to December 1996, implementation phase from 1997 to 2001, and ending phase from January 2001 to December 2003. But it is not completed yet until now.

　　A) Project Objectives. The project is part of a phased development program of Yunnan Province to improve environmental conditions and sistain urban services management. The principal objective of the project is to provide a sustainable environmental framework for the long term economic and social development of the Province, while providing a conducive foundation for industrial growth. Specific objectives of the project are to:

　　(a) strengthen policies, regulations and institutiaon arrangements for pollution control, and municipal water, wastewateer, solid waste and nightsoil management.;

　　(b) support the improvement of the lakes environment in Gejiu and Kunming in order to allow the waters to be used for potable supply, industry or agriculture, as appropriate;

　　(c) facilitate complementary sustainable investments in pollution control and municipally-provided urban environmental services;

　　(d) introduce a comprehensive approach to planning, prioritization, management, and financing of urban environmental infrastructure investments.

　　B) Project Description. The project comprised a mix of policy and investment initiatives. The policy initiatives would support a stronger market orientation for municipal service pricing, and the concerned utility enterprises and EPBs would be strengthened through technical assistance and training. Investments would support municipal strategies for environmental recovery and sustained use of natural resources, pricipally water. A summary description of the five core project components is given below.

　　(a) Lake Dianchi Basin Water Quality Recovery. Investments would support the Dianchi Environmental Action Plan (DEAP), and would include control of point and nonpoint pollution in the Dianchi Lake Basin, through improved catchment management, wastewater and stormwater collection, treatment and disposal, including wastewater treatment in the county towns of Chenggong and Jinning; improved collention, transport and disposal of municipal solid waste and nightsoil; remediation of polluting practices causing lake eutrophication; and measures to strengthen Dianchi Lake Basin management and safeguard the long-term quality of water resources; and improvements to basin water resource allocation, to ensure that the highest quality water is used for the most quality-sensitive uses such as for potable supply.

　　(b) Industrial Pollution Control. Direct investment

　　(c) Provincial Urban Environment Services.

　　(d) Environmental and Water Quality Monitoring.

　　(e)Institutional Development, Training and Construction Supervision.