Beijing: The Asian Development Bank (ADB) has approved a whopping USD 800 million as loan to improve the water and surrounding environment of a major lake in China.

The loans will be used to intercept sewage flowing into the Chaohu Lake, dredge the tributaries, renovate dikes, build lake bank roads as well as reinforce environmental monitoring, said an official with the development and reform commission in the east Anhui province's capital of Hefei.

As one of China's five largest freshwater lakes, Chaohu Lake, mostly situated in the city of Hefei, covers an area of 13,000 square kilometres.

Heavy use and local industrial development in recent years have made it one of China's most polluted lakes a news agency reported.