According to local water resources departments on Friday, apart from bank loans of 85 million yuan (US$10.2 million), funding mainly consisted of government input by the State Planning Commission, allocations by the Chinese Ministry of Resources as well as investment from national bonds issued especially for the development of western China.

By the end of last year, nine hydroelectric power plants and 54 water conservation projects had been completed, which not only put an end to power shortages affecting 128,000 local farmers and herds people but also eased water deficiency once plaguing 170,000 people and 2.2 million head of livestock.

To ensure project quality, a package of measures has been adopted, which includes checks on contractors' qualifications, public bidding and the supervision of independent inspectors from the Yangtze River Water Resources Committee.

(eastday.com January 4, 2003)