A total of 63.3 billion yuan (US$7.63 billion) had been raised for the gigantic water-control project at Three Gorges on the middle reaches of the Yangtze River by the end of last year.
By the time it is completed in 2009, the Three Gorges project, which began construction in 1992, will cost 90.09 billion yuan static investment (without regard to interest and price hikes), reported Xinhua news agency.
However, China Yangtze River Three Gorges Project Development Corp. sources said it will cost 180 billion yuan if interest and price hikes are taken into account, which will still be 20 billion yuan less than the predicted cost.
Some 50.09 billion yuan will be spent on construction of key works such as the dam, power-generating stations, and the ship locks. The remaining money will be used for resettlement of local residents.
Investment for construction of the Three Gorges Project will be raised via the Three Gorges Project Fund, which is being levied by raising electricity prices in most areas of the country, income from electrical generation at the downstream Gezhouba Water Conservation Project, bank loans, the use of overseas investment, and the income from electrical generation when the first group of the electrical generators at the Three Gorges project are installed and put into operation in 2003.
Funds also will be raised from the selling of corporate bonds issued for construction of the Three Gorges Project, according to Xinhua.
The development corporation has issued three terms of corporate bonds on the domestic capital market and has raised 6 billion yuan for the project.
The project, situated near Yichang in Hubei Province, consists of a 1,983-meter-long by 185-meter-tall dam and 26 generating units with a combined capacity of 18.2 million kilowatts.
On completion, the project will be able to generate 84.7 billion kilowatt hours of electricity annually. Its permanent locks will allow a fleet of more than 10,000 deadweight tons.
(eastday.com 01/19/2001)
