BEIJING, May 27 -- The Asian Development Bank (ADB) will help improve water access and quality in China in a 200-million-U.S. dollar deal signed here on Tuesday with private water supplier China Water Affairs Group Limited (CWA).

Under the project, for which no time scheme was specified, CWA will extend urban water pipeline networks into semi-urban and rural communities to provide household connections to tap water 24 hours a day, seven days a week. Customers will enjoy better water quality and more reliable access.

CWA will also strengthen existing water facilities to prevent leakage and secondary contamination during distribution.

"Private sector participation in integrated urban-rural water distribution is an effective way to reach out to the least reached," said Hisaka Kimura, principal investment specialist at the ADB's Private Sector Operations Department, at the press conference on the deal.

"By improving water efficiency throughout distribution, the project will help conserve water, one of the most precious resources in China's growing economy," added Kimura.

According to the deal, the ADB's support will comprise a direct A-loan of 100 million dollars, denominated in U.S. dollars and renminbi. The renminbi portion will use funds raised via the bank's Panda bonds as well as Dim Sum bonds.

The ADB will also arrange a 100-million-dollar B-loan, under which it acts as the lender of record for commercial banks.