AS a major beneficiary of the south-to-north water diversion project, Beijing will invest 500 million yuan (US$81.7 million) a year to fund the development of Hubei and Henan provinces.

From this year through 2020, the two provinces will each receive 250 million yuan from the capital for ecological economy development, industrial upgrading and environmental protection, the Beijing aid and cooperation office said yesterday.

A total of 16 counties and districts in the city will partner with 16 others in Hubei and Henan on school renovation, ecological protection, teacher training, sewage treatment and medical care, the office said.

Water from the south is expected to start flowing to arid Beijing later this month.

The middle route of the project will see 9.5 billion cubic meters of water per year pumped from the Danjiangkou reservoir in central Hubei Province to Henan and Hebei provinces and then to Beijing.

Once operational, the project will supply more than half of the water needed for urban and industrial use in the capital.

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