Project Management 3 Gorges Dam
Project Management 3 Gorges Dam
Project Management 3 Gorges Dam
By Sec – Z Group - 10
Bibhu Prasad Nayak U113196
Swayambhu Dutta U113236
Arjun Agrawal U113191
Prateek Saraf U113215
Stalin Mohapatra U113233
Varun Kumar Pandey U113239
Introduction Requirement Challenges Planning
• Massive floods in Yangtze river every 10 years, for last 2000 years.
Casualties
1954
30000
1911
100000
1935
145000
1931
3700000
100 100
50 40
25
0
1990 2000 2010 2020 2030 2040
Introduction Requirement Challenges Planning
The Stakeholders
For Against
The Chinese Government People forced to Relocate
Shipping Companies
River Dolphins
Dam Builders
Environmentalists
Hydro-Power Companies
Archeologists
Clean Energy Advocates
Pros Cons
• Loss of fish and
• Flooding of good farmland
• Controls the Yangtze river floods,
• Extinction of the river dolphin
saving lives and homes
• Destruction of archeology sites
• Major source of renewable power,
• Relocation of 1.3 million people
replacing coal as a source of power
• May be triggering landslides,
• Made it possible for ships
endangering millions of people
(commercial and recreational) to
• Rise in water born disease from
travel much further inland
polluted water
• Tourist attraction
• Weight of the reservoir may trigger
earthquakes
Introduction Requirement Challenges Planning
Environmental Impact
• Project has a great influence on the environment and ecology of the
reservoir area and the Yangtze River.
• Biggest concern is the pollution of the reservoir - After the water storage,
due to the steady state of the fluent, the contaminant cannot down rush in
time and store up in the reservoir, which would deteriorate water quality
and cause refuse floating, and probably trigger the epidemic.
Migration Problem
• Migration problem is the biggest difficult faced by the project - The fund
for migration covers 45% of the total investment. After the water storage,
about 129 cities and towns including Wanxian and Fuling are flooded.
• The migrants surpass 1200,000, relating to 20 cities. Many migrants are
building their new homes around the dam area.
• But the current situation is that though the infrastructure construction is
rapid, the industry develops slowly, a great number of enterprises went
bankrupt, the unemployment rate is high and the income of peasants falls,
which has brought a lot of social problems. Precious Stone Fortress is partly submerged in the
Landscape Loss water.
• As the water storage of the Three Gorges Dam, the rising Yangtze River
has flooded a part of the landscape. Scenery changes a lot compared
before the dam construction.
• It is a great pity that so many scenic sights have forever disappeared.
The experts have tried their best to save them as much as possible. They
moved some to the new sites, transferred some to museums or took
photos as a reference to later reproduction.
Introduction Requirement Challenges Planning
Ecological Problem:
Fishes cannot normally pass the Three Gorges, and thus their living habits and heredity
will change.
After the finish of the water storage, over 560 kinds of land rare plants will be flooded.
A) Endangered Treasures : Among the potential tragedies of the Three Gorges Dam project
are over one thousand sites of archaeological and historical importance that will be
submerged and lost forever upon completion of the dam like
•Ba Civilization: Artists and Metal Workers
•Ancient Fossils at Dragon Bone Cave
•Shibaozhai Temple
B) Endangered Species
The ancient plank road is
The baiji dolphin, the ancient river sturgeon and the finless porpoise depend on the Yangtze submerged in the water.
for their survival. The population of Siberian cranes in Poyang Lake will also
Earthquakes
•The Three Gorges area is affected by many small earthquakes yearly,
but most range from 1-2 on the Richter scale.
•However, once the dam is completed, these levels are expected to rise to
earthquakes that will be 5-6 on the Richter scale.
•While technology allows the dam to tolerate earthquakes that are 7-8 on
the Richter scale, if there is any miscalculation, there would be complete
disaster.
Introduction Requirement Challenges Planning
Sediment Problem
It is measured that the river sediment concentration of the upper stream is about
1.2kg per cubic meter.
The total sediment passing the dam site is above five hundred million a year.
Before the dam project, the mud and sand deposited largely in Jingjiang River,
which has lifted the water level and menaced the safety of Jianghan
(Yangtze River and Hanjiang River) Plain and Dongting Lake Plain.
Agricultural Production
Although silt deposits are dangerous to the health of a river and the
usefulness of a dam, silt itself is necessary. Silt is a naturally occurring
phenomenon, and consists of soil, gravel and rocks, mostly coming from soil
erosion on land.
Introduction Requirement Challenges Planning
Introduction Requirement Challenges Planning
Table: Summary of the arguments in favor of and against the dam
Issue Criticism Defense
The dam will far exceed the official cost estimate, and the The dam is within budget, and updating the
Cost investment will be unrecoverable as cheaper power sources transmission grid will increase demand for its
become available and lure away ratepayers. electricity and allow the dam to pay for itself.
Relocated people are worse off than before and their human 15 million people downstream will be better off due
Resettlement
rights are being violated. to electricity and flood control.
Water pollution and deforestation will increase, the coastline Hydroelectric power is cleaner than coal burning and
Environment will be eroded and the altered ecosystem will further endanger safer than nuclear plants, and steps will be taken to
many species. protect the environment.
The reservoir will flood many historical sites and ruin the
Local culture and Many historical relics are being moved, and the
legendary scenery of the gorges and the local tourism
natural beauty scenery will not change that much.
industry.
Shipping will become faster, cheaper and safer as
Heavy siltation will clog ports within a few years and negate
Navigation the rapid waters are tamed and ship locks are
improvements to navigation.
installed.
Technological advancements have made hydrodams obsolete, The alternatives are not viable yet and there is a
Power generation and a decentralized energy market will allow ratepayers to huge potential demand for the relatively cheap
switch to cheaper, cleaner power supplies. hydroelectricity.
Siltation will decrease flood storage capacity, the dam will not The huge flood storage capacity will lessen the
Flood control prevent floods on tributaries, and more effective flood control frequency of major floods. The risk that the dam will
solutions are available. increase flooding is remote.
Introduction Requirement Challenges Planning
The construction started December 14 1994. The dam was expected to be fully operational in 2009,
but additional projects, such as the underground power plant with six additional generators, are
expected to delay full operation until mid-2012.The ship lift is expected to be completed in 2014.
In 1932 the Construction In 1958, Mao Zedong In early 1989, the State
Committee of Sun Yat-Sen pushed for support; he Council agreed in March to
The project was due to be
created the initial plan for a wanted China to have the suspend construction plans
completed in 2009.
much smaller dam on the largest hydroelectric dam in because of international
Yangtze River. the world. pressures.
Introduction Requirement Challenges Planning
Chinese Financiers
Year Bank Assistance
1996 China Development Bank Ten-Year $3.6 billion loan to the Three Gorges project
1999 China Construction Bank Loan of $483 million to China Three Gorges Project Development Co
2003 China Construction Bank Underwriter for Yangtze Power’s issue of $194 million worth of one-
year bills on the interbank market
2003 China Construction Bank Underwriter for Yangtze Power’s issue of $331 million worth of 365-
day debt papers in the interbank market
2003 Consortium of 10 Banks Loan agreements with Yangtze Power for $404 million
2003 China Development Bank Loan agreement with Yangtze Power for $603.9 million to purchase
generators
Financing Construction Cost & Time Completion
China Development Loans to Harbin Electricity Equipment Group and Harbin Power
Plant Co. Ltd amounting to $84 million for the reconstruction of a
Bank
hydroelectricity generator.
2000 World Bank Approved a $200 million loan to Chongqing municipality in June
2000 for a US$500 million project (completion expected
December 2006) that includes wastewater treatment facilities and
solid waste collection services in areas impacted by the Three
Gorges dam.
Financing Construction Cost & Time Completion
International funding for the Three Gorges Dam project is a major factor in its construction. Companies and banks from
Canada, France, Germany, Switzerland, Sweden, and Brazil have all played a role in financing the dam.
CANADA EXPORT DEVELOPMENT CORPORATION $23.5 million loan to the People's Construction Bank of China for Fuller-F.L. Smitdth Canada's contract
(1994).
$37.5 million loan to financeAGRA Monenco's contract (1995).
$153 million loan to financeGE Canada's contract (1997).
SWITZERLAND Bundesrat Exportrisikogarantie $143.1 million export credit guarantee for the purchase of ABB turbine-generator sets (1997).
Geschäftsstelle für die Exportrisikogarantie (ERG) Export credit guarantee for the purchase of ABBequipment (1999).
Financing Construction Cost & Time Completion
Quantify each effect (e.g. kw Hrs. of electricity). • Lost land from inundation (reservoir)
Indirect Costs
Value each effect (e.g. determine its price)
Sum discounted benefits minus costs • Resettlement costs (including compensation
and development costs)
Benefits:
• Lost archaeological sites
• Power generation & Economic Growth
• Possible accident costs (during construction,
• Flood control & Navigation improvement operation and maintenance)
Uncertainty: Environmental Costs
• Aesthetic loss due to reduction in water flow
• Electricity generated, economic growth per KW
• Sedimentation- lower power generation
Hr.
• Decline in fish catch downstream
• Decay of electricity from sedimentation • Downstream pollution caused by dam
• Loss of archeological sites & Displacements construction
Financing Construction Cost & Time Completion
Expected Results
Costs/Disadvantages/Negative Effects
1. Several large towns upstream, such as Fuling (population=80,000) and Wanxian (population=140,000) will be flooded.
2. Ancient temples, burial grounds and other historic sites will be lost beneath the reservoir too.
3. Over 1.3 million people will have to be relocated.
4. Much of the land used for resettlement is over 800m above sea level, where the climate is colder and the soil can
barely support farming.
5. The pressure created by the huge weight of the water in the reservoir behind the dam could trigger earthquakes.
(But it is engineered to withstand an earthquake of 7.0 on the Richter scale.)
6. The untreated human and industrial waste will not be washed away downstream, but will stay and pollute the river
instead.
7. Areas downstream will be deprived of fertile sediment.
8. It will divert money from other developments. It is currently one of the most expensive projects in the world, costing
more than $26 billion, over their budget.
Financing Construction Cost & Time Completion