The Asian Development Bank (ADB) is helping water-scarce Shandong Province to rehabilitate and improve the efficiency of nine ageing dams with a US$ 29.8 million technical assistance loan. The Risk Mitigation and Strengthening of Endangered Reservoirs in Shandong Province Project will “set the standard for efficient, safe and cost-effective reservoir operation and management nationwide”.
“This initiative will reduce the risk of reservoir failure as well as protect lives, property and livelihoods downstream where poverty levels are high. It will also provide more water for agriculture and household use, improve the quality of reservoir releases, preserve water quality and improve groundwater resources,” said Yoshiaki Kobayashi, Water Resources Management Specialist in ADB’s East Asia Department.
About 90% of China’s reservoirs were built between 1958 and 1976 and are in poor condition. Since 2001 China is carrying out a phased rehabilitation programme. In Shandong Province (pop. 94 million) water scarcity and saltwater intrusion into coastal catchments are severe problems.
“The loan, from ADB’s ordinary capital resources, makes up around 33% of the total project cost of almost $90.1 million. It has a repayment term of 25 years, including a grace period of 5 years, and an annual interest rate determined in accordance with ADB’s LIBOR-based lending facility. The Government of the PRC, the Provincial Government of Shandong, and county governments will finance the remainder.
Source: ADB, 22 Nov 2010