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WB OKs $710M loan to aid China quake-zone recovery

(Xinhua)
Updated: 2009-02-13 15:27

BEIJING -- The World Bank (WB) China Office announced here on Friday the approval of a US$710 million loan for the reconstruction of areas devastated by the 8.0-magnitude earthquake that shook China last May.

Sichuan and Gansu, the two provinces that suffered the most losses from the earthquake, will receive 510 million dollars and 200 million dollars respectively from the WB project named the Wenchuan Earthquake Recovery Project.

According to the World Bank, the fund will go primarily toward financing the recovery and reconstruction of infrastructure such as roads, bridges, water supply systems and waste management, as well as medical facilities in selected counties in both provinces. In Gansu, funds will also aid the reconstruction of education facilities.

"This project will assist many quake-stricken communities rebuild their lives by restoring essential services," said project manager Mara Warwick, a senior urban environment specialist of the World Bank.

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Warwick said World Bank hoped to share its experience in post-disaster reconstruction, management and prevention with China through the project, though it accounted for only a small part of the government's overall recovery effort.

Of China's four trillion yuan (about US$585 billion) national economic stimulus plan issued at the end of 2008, one trillion yuan is designed for quake-zone reconstruction.

Official statistics showed the earthquake claimed 69,227 lives, with 374,643 people injured and 17,923 missing by September 25, 2008.

Of the total direct economic losses estimated at 845.1 billion yuan, Sichuan took up 91.3 percent, Gansu 5.8 percent.