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World Bank Loan Supports Inland Waterway Transport in Jiangxi

September 25, 2008

WASHINGTON/BEIJING, September 25, 2008 – Today the World Bank's Board of Executive Directors approved a loan of $100 million to the People's Republic of China to develop more reliable freight transport and cleaner energy production in Jiangxi Province.

JiangxiProvince, a land-locked province in south-central China, plans to develop inland waterway transport tosupplement road and rail transport in providing competitive services for bulk and low-value cargo.  The priority is to facilitate navigation on the Gan River, particularly in the middle and lower reaches of the River. Jiangxi Shihutang Navigation and Hydropower Complex Project will assist Jiangxi Province in achieving this objective by improving inland waterway transport capacity and service levels for primary and secondary industries in the Nanchang-Ganzhou corridor of the Gan River. The project will also help generate hydropower, a clean and renewable power resource, to meet rapidly growing demand for energy in the region.

The World Bank loan will finance construction of Shihutang Complex comprised of sluice gates, a ship lock, a power station with an installed capacity of 120 MW, a dam and an access road.  The project will also build flood protection works to enhance the province's flood protection capacity.  Technical assistance will be provided to strengthen the institutional and technical capacities of Jiangxi Administration of Navigation Affairs in inland waterway transport management, waterway development and maintenance, construction management, hydropower plant operation, and management of cumulative impacts at watershed level.

"The World Bank has supported five inland waterway transport projects in six provinces in China over the past 10 years," said World BankTask Team Leaderand Senior Transport SpecialistZhang Wenlai."The Bank's unique expertise and experience, both international and local, is expected to contribute to the development of inland waterway transport sectorin Jiangxi Province."



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