MANILA, Oct. 13 (Xinhua) -- The Asian Development Bank (ADB) will help reduce environmental pollution in Wuhai and Bayannur municipalities in the Inner Mongolia Autonomous Region, China through a loan of 120 million U.S. dollars, an ADB report said on Friday.

The funds will be used for new gas and heating supplies that will conserve energy and reduce pollution, as well as wastewater treatment facilities to protect water resources, said the report.

Large boilers will be installed to replace 396 small coal-fired boilers in eight areas: Dengkou, Hangjinhouqi, Linhe, Wuhai, Wulatehouqi, Wulateqianqi, Wulatezhongqi, and Wuyuan. Gas transmission and distribution systems will also be provided to replace the use of liquefied petroleum gas and coal.

In Wulateqianqi and Wulatezhongqi, treatment plants and a sewage network will be built to improve wastewater treatment. In addition, staff in relevant government agencies will be trained.

"Demand for gas, heating, and water supply for domestic and industrial use in Inner Mongolia has been increasing, imposing great pressure on its limited resources," said Siew Fing Wong, an ADB Senior Financial Specialist for Energy.

"Improved economic performance will not be sustainable unless there is an immediate response to the worsening trend of air and water pollution," Wong said. Enditem