The New Development Bank (NDB) -- founded by the BRICS nations of Brazil, Russia, India, China and South Africa -- approved an important 825 million yuan ($119.56 million) loan to Shengzhou, East China's Zhejiang province, for a water supply and drainage project.

The project, with a total investment of 1.87 billion yuan ($270.75 million), will include the construction of four water supply factories, three sewage treatment factories and one smart and digitalized management center within five years.

It is designed to improve the city's water supply and drainage system for green and sustainable development.

"The New Development Bank is committed to supporting projects and infrastructure of great significance for green, sustainable development and people's livelihoods. The water supply and drainage project in Shengzhou is one of them," said Zhu Xian, vice-president of the bank.

This is the inaugural project involving the NDB and Zhejiang. Zhu also extended his hope that the project would serve as a good beginning for more extensive and in-depth exchanges and cooperation between the two parties.

The bank was officially launched in the Russian city of Ufa in 2013 with an initial capital of $100 billion funded by its five founding member countries.

Its mission is to support infrastructure and sustainable development efforts in BRICS nations – as well as in underserved, emerging economies -- for faster development through innovation and cutting-edge technology, according to the NBD's official website.

So far, it has approved loans to more than 30 projects.