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China - Yantan Hydroelectric Project (Английский)

This is the Implementation Completion Report (ICR) for the Yantan Hydroelectric Project in China. The objectives of the project were to: (a) help address the acute energy shortage in Guangxi autonomous region and Guangdong province through the cascade development of the Hongshui River; (b) promote interconnection within the South China grid; (c) help build relations with GEPB and the regional authority, South China Electric Power Administration (SCEPA), with whom the Bank expected to collaborate on future projects; (d) provide transfer of technology in dam design and construction; and (e) upgrade financial planning and management practices in the electricity subsector. The project achieved its primary objective of supporting economic growth through development of an important indigenous resource. Bank performance overall was satisfactory. The key lessons to be learned from this project are: 1) In a project such as Yantan, which relies heavily on local capabilities, it is important to guard against over-optimism with respect to these capabilities in areas where traditional Chinese hydroelectric implementation has not provided exposure to modem techniques and technology. In the context of China's rapid economic growth, it is also important to assess the manufacturing capacity and workload of local suppliers and thus their capability to deliver on time; 2) In the area of resettlement, the key lesson learned is that for a large resettlement project such as Yantan, it is important that project preparation in relation to resettlement be at least as detailed as that of the construction component.

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