The interior regions of the People’s Republic of China (PRC) have not benefited as much from economic growth and reforms as the east coast. In fact, the gap in economic and social development had been increasing in the years leading to the project appraisal in 2005. Inadequate transport infrastructure and high logistics costs were among the key constraints.
Shanxi province is situated in the middle reaches of the Yellow River and the eastern part of the Loess Plateau in northern People’s Republic of China (PRC). At project appraisal, it had only about 3.8 million hectares of dependable arable land, of modest quality and productivity, for its 23 million rural population.
The rapid economic growth of the People’s Republic of China (PRC) has depended in part on reservoirs, which have facilitated flood control, irrigation, hydropower generation, and water supply. These reservoirs are grouped by the country into three safety classes. Class III, comprising 37,032 reservoirs or 43% of the total as of end−2006, are the least safe.
Huge increases in electricity demand, averaging more than 13% annually in 2001-2008, had accompanied the rapid economic growth of the People’s Republic of China (PRC) in the years leading to the project appraisal in 2009. As supply could not keep pace with demand, power shortages became rampant in some areas.