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The Japan Bank for International Cooperation will provide a loan of 461 million yuan (US$55.54 million) for a water-saving agriculture project in northwest China, sources said.

Relevant domestic departments will offer a complementary fund of 317 million yuan (US$38.19 million) for the project, which will be carried out in the arid areas of Gansu Province, according to an agreement minute recently signed between the Japan bank and the Chinese Ministry of Finance.

The project is expected to develop 80,000 hectares of irrigated farmland in 17 counties and cities in the province in three years.

Experts estimated that upon completion, the project can help save 168 million cubic meters of water annually.