The Asian Development Bank (ADB) said Monday that Myanmar will get a grant of 4 million U.S. dollars to improve sanitation and water access in two of its most populated cities.
The amount will come from the Japan Fund for Poverty Reduction being administered by the Manila-based lender.
ADB said the money will be used to build 2,000 sanitary latrines, construct 17 kilometers of drains linked to city networks and build four community waste systems in four townships in Yangon and Mandalay by 2018.
"Living conditions in these communities are dismal, leaving residents vulnerable to flooding and chronic health issues, which is hindering their ability to seize economic opportunities," said Linda Adams, Social Development Specialist in ADB's Southeast Asia department, in a statement.
ADB noted that a significant portion of Myanmar's urban population live in resettlement areas created in the late 1980s and early 1990s with only basic services.
"Rapid urban migration, accompanying the opening of the economy, has placed a heavy burden on these communities," the ADB said.
ADB said many residents in these cities have turned to costly private solutions to buy water or remove waste, making them dependent on money lenders.