# After long drought, China plots ambitious water infrastructure push
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-01
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: China Plans Billions in Water Infrastructure Investment Amid Drought Crisis
Meta Description: Discover how Chinese provinces are investing billions of dollars in new water infrastructure to combat the impact of extreme weather on agriculture and
URL: https://financedigest.com/after-long-drought-china-plots-ambitious-water-infrastructure-pushhtml

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By David Stanway

SHANGHAI (Reuters) – After a record heatwave parched large areas of the Yangtze basin, Chinese provinces are planning to spend billions of dollars on new water infrastructure as they try to fend off the growing impact of extreme weather on agriculture and hydropower.

The prolonged drought in southwest China has exposed the vulnerability of hydropower-dependent regions such as Sichuan to falling water levels and disrupted electricity transmission to other parts of the country.

With per capita [water supplies](https://www.financedigest.com/best-paying-jobs-in-water-supply.html "Best Paying Jobs In Water Supply") already only a quarter of the global average, authorities are also concerned about the impact of low rainfall on the upcoming autumn harvest, with some suggesting 20% of China’s crop could be affected.

Drought-hit regions have been digging emergency wells and deploying firefighters and cloud-seeding rockets to irrigate crops, but governments are also turning to larger, long-term water infrastructure.

“Because of the strong extremes, and the worsening of both floods and droughts, the ability to store and transfer water becomes very important,” Mao Liuxi, an expert with the China Meteorological Administration, told a recent teleconference.

The Ministry of [Water Resources](https://www.financedigest.com/uk-to-manage-water-resources-carefully-as-drought-continues.html "UK to manage water resources carefully as drought continues") has already approved 25 big projects this year, with total investment of 1.7 trillion yuan ($246 billion).

Central China’s Hubei province, hit hard by the Yangtze drought, began construction of 18 giant water projects on Wednesday, and [plans to spend 176 billion](https://www.financedigest.com/australias-nuclear-submarine-plan-to-cost-up-to-245-billion-by-2055-defence-official.html "Australia’s nuclear submarine plan to cost up to 5 billion by 2055 -defence official") yuan over 2021-2025.

Last month, southwest China’s Yunnan also began work on four big water storage [projects with a combined investment](https://www.financedigest.com/sse-to-invest-122-million-in-scottish-pumped-hydro-project.html "SSE to invest 2 million in Scottish pumped hydro project") of 211.8 billion yuan.

China has long relied on large-scale infrastructure projects to control its rivers. The giant Three [Gorges Dam was designed not only to generate electricity](https://www.financedigest.com/totalenergies-china-three-gorges-to-form-electric-mobility-venture-in-china.html "TotalEnergies, China Three Gorges to form electric mobility venture in China") but also to regulate the flow of the Yangtze, on which around a third of the population depends.

China has also been building the ambitious South-North Water Diversion Project, with channels now in place in eastern and [central China to use Yangtze waters](https://www.financedigest.com/testing-waters-hungarys-central-bank-flags-cut-in-top-end-of-rate-corridor.html "Testing waters, Hungary’s central bank flags cut in top end of rate corridor") to replenish the arid north.

There’s a mentality that there’s always an engineering, infrastructure solution,” said David Shankman, a geographer with the University of Alabama who studies China’s [water system](https://www.financedigest.com/rain-water-harvesting-systems-market-to-expand-at-close-to-7-cagr-through-2031.html "Rain Water Harvesting Systems market to expand at close to 7% CAGR through 2031").

They are trying to plan for the exceptional, but you can’t [predict the future.”](https://www.financedigest.com/covid-19-impact-on-attitude-and-heading-reference-systems-market-volume-analysis-future-prediction-industry-overview-and-forecast-2028.html "Covid-19 Impact On Attitude and Heading Reference Systems Market | Volume, Analysis, Future Prediction, Industry Overview And Forecast 2028")

DAMMING THE YANGTZE

With around [80% of Sichuan’s energy](https://www.financedigest.com/varo-energy-buys-80-of-dutch-biogas-firm-aims-to-double-capacity-by-2026.html "Varo Energy buys 80% of Dutch biogas firm; aims to double capacity by 2026") supplies coming from hydropower, the drought forced authorities to shut down industries and ration power for households.

In response, China’s energy bureau said it would build more grid infrastructure and [develop alternative](https://www.financedigest.com/whats-better-than-openai-developers-shop-for-alternatives.html "What’s better than OpenAI? Developers shop for alternatives") energy sources. It also vowed to speed up the construction of more dams on the Yangtze’s upper reaches.

In theory, the [construction of more upstream hydropower plants](https://www.financedigest.com/uk-gives-go-ahead-for-edfs-sizewell-c-nuclear-plant-construction.html "UK gives go-ahead for EDF’s Sizewell C nuclear plant construction"), particularly in parts of Tibet where melting ice in spring and summer could be diverted into reservoirs, could help even out seasonal water flow changes.

China already stores huge amounts of water in its giant reservoirs, and [says they serve an important function in limiting](https://www.financedigest.com/digital-euro-will-be-free-but-limited-in-scope-ecb-says.html "Digital euro will be free but limited in scope, ECB says") flood damage during rainy seasons.

But [critics say](https://www.financedigest.com/tunisias-saied-holds-referendum-critics-fear-for-democracy.html "Tunisia’s Saied holds referendum, critics fear for democracy") the projects are costly, environmentally damaging and remain at the mercy of unpredictable weather.

If you’re anticipating droughts, you want to have the highest water capacity, but in anticipation of severe floods, you want to have the lowest water level you can have,” said Shankman, adding the situation is further complicated by the [need to retain enough water to generate electricity](https://www.financedigest.com/swedish-energy-minister-need-to-decouple-gas-from-electricity-price.html "Swedish energy minister: need to decouple gas from electricity price").

Zhou Jinfeng, Secretary General of the [China Biodiversity Conservation and Green Development](https://www.financedigest.com/china-most-promising-source-of-funds-for-overseas-developers-reveals-investorist.html "China ‘most promising source of funds’ for overseas developers, reveals Investorist") Foundation (CBCGF), an environmental group, says the construction of giant water projects has already severely disrupted the Yangtze’s natural habitats and hydrological functions.

Water engineering [projects are neither the best solution](https://www.financedigest.com/demand-for-temperature-controlled-pharma-packaging-solutions-to-reach-over-us-9-bn-by-2030-fmi-projects-a-decline-till-q2-2020-amid-covid-19-pandemic.html "Demand for Temperature Controlled Pharma Packaging Solutions to Reach over US$ 9 Bn by 2030; FMI Projects a Decline till Q2 2020 Amid COVID-19 Pandemic"), nor the only solution,” he said.

($1 = 6.9071 yuan)

(Reporting by David Stanway; Editing by Lincoln Feast.)


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