MANILA, Dec. 14 (Xinhua) -- The Asian Development Bank (ADB) has approved a 200 million U.S. dollars loan for an inclusive green development project in Ziyang city in the southwestern Chinese province of Sichuan.

The new project will demonstrate for the first time how medium-sized cities in the middle and upper reaches of the Yangtze River can tackle ecological and green growth challenges, the Manila-based ADB said in a statement on Thursday.

"The project's mix of ecological, economic, and urban planning activities will encourage investment and new jobs and make Ziyang into a much better place to live," said ADB Senior Water Resources Specialist Fan Mingyuan.

"It will showcase a way forward for other towns and cities looking to secure a sustainable, green future," he added.

Ziyang is a typical medium-sized municipality with a population of around 3.6 million, according to ADB.

It said the city's heavy industry has brought some economic growth but has been a prime cause of pollution in nearby lakes and local river.

The economy also needs more environmentally friendly sectors, such as light industry and services, that can provide more jobs over the long term, the ADB said.

The ADB said the project's ecological features will include building flood control embankments, interventions to capture stormwater and, for the first time for ADB, turning a polluted landfill into a park.