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
Project Management - Major Research Project
Submitted to Prof: Purna Chandra Rath
Introduction Requirement Challenges Planning
What is Three Gorges Dam ?
The Three Gorges Dam is
a hydroelectric dam that spans
the Yangtze River by the town
of Sandouping, located in Yiling
District,Yichang, Hubei province, Chi
na. The Three Gorges Dam is
the world's largest power station in
terms of installed capacity
(22,500 MW).
The Chinese Government regards the project as a historic engineering, social
and economic success, with the design of state-of-the-art large turbines, and
a move toward limiting greenhouse gas emissions.
Introduction Requirement Challenges Planning
Dam Site : Upstream on Yangtze River
Made of concrete and steel
The dam is 2,335 m (7,661 ft.) long and the top
of the dam is 185 meters (607 ft.) above sea
level.
The project used 27.2 million cubic meters
(35.6106 cu yd.) of concrete (mainly for the dam
wall), 463,000 tonnes of steel and moved about
102.6 million cubic meters (134.2106 cu yd.) of
earth.
The concrete dam wall is 181 meters (594 ft.)
high above the rock basis.
63 X
Steel Used
Compositions & Dimensions:
3
Gorges
Dam

=
Introduction Requirement Challenges Planning
Introduction Requirement Challenges Planning
22500
14000 13860
8850
8370
0
5000
10000
15000
20000
25000
3 Gorges Dam Itaipu Dam Xiluodu Dam Guri Dam Tucurui Dam
Installed Capacity (MW)
Installed Capacity (MW)
27
9
0.3
0
5
10
15
20
25
30
3 Gorges Dam Grand Coulee Dam Burj Khalifa
Concrete Used (in million cubic meters)
Concrete Used (in million cubic meters)
HOW BIG IS THE PROJECT?
Why is a dam this large
required?
Flood Control expected to
reduce the severity of flooding by
90%
Navigation- Allow the passage
of 10,000 ton ships to Chongqing
(earlier limited 5,000 ton ships);
allow ships to sail throughout the
year.
Energy Production-
Hydroelectric power generation
will generate 15% of China's
electricity; Saving an estimated
50 million tons of coal.
Introduction Requirement Challenges Planning
Massive floods in Yangtze river every 10 years, for last 2000 years.





Meeting Chinas huge energy demands





3700000
145000
100000
30000
1931
1935
1911
1954
Casualties
25
40
100
160
197
220
0
50
100
150
200
250
1990 2000 2010 2020 2030 2040
Energy Demands (in Quadrillion Btu)
Introduction Requirement Challenges Planning
The Chinese Government
Shipping Companies
Dam Builders
Hydro-Power Companies
Clean Energy Advocates
People loosing lives due to flooding
People forced to Relocate
River Dolphins
Environmentalists
Archeologists
Geologists
The Stakeholders
Against For
Pros Cons
Controls the Yangtze river floods,
saving lives and homes
Major source of renewable power,
replacing coal as a source of power
Made it possible for ships
(commercial and recreational) to
travel much further inland
Tourist attraction

Loss of fish and
Flooding of good farmland
Extinction of the river dolphin
Destruction of archeology sites
Relocation of 1.3 million people
May be triggering landslides,
endangering millions of people
Rise in water born disease from
polluted water
Weight of the reservoir may trigger
earthquakes

Introduction Requirement Challenges Planning
Introduction Requirement Challenges Planning
Precious Stone Fortress is partly submerged in the
water.
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.
Landscape Loss
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
The ancient plank road is
submerged in the water.
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 baiji dolphin, the ancient river sturgeon and the finless porpoise depend on the Yangtze
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
Erosion and the Yellow Sea
Erosion is also a key factor in the problems of Three Gorges. Many dams
around the world have provoked a problem with coastal erosion, and Three
Gorges doesn't seem to be heading in a different direction. The problem starts
when clear water is forced out of the river mouth and carried along the coast.
This clear water erodes the coast and this erosion can cause problems far
beyond the boundaries of Three Gorges, and could also cause serious problems
along China's coastal cities and towns.
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
Issue Criticism Defense
Cost
The dam will far exceed the official cost estimate, and the
investment will be unrecoverable as cheaper power sources
become available and lure away ratepayers.
The dam is within budget, and updating the
transmission grid will increase demand for its
electricity and allow the dam to pay for itself.
Resettlement
Relocated people are worse off than before and their human
rights are being violated.
15 million people downstream will be better off due
to electricity and flood control.
Environment
Water pollution and deforestation will increase, the coastline
will be eroded and the altered ecosystem will further endanger
many species.
Hydroelectric power is cleaner than coal burning and
safer than nuclear plants, and steps will be taken to
protect the environment.
Local culture and
natural beauty
The reservoir will flood many historical sites and ruin the
legendary scenery of the gorges and the local tourism
industry.
Many historical relics are being moved, and the
scenery will not change that much.
Navigation
Heavy siltation will clog ports within a few years and negate
improvements to navigation.
Shipping will become faster, cheaper and safer as
the rapid waters are tamed and ship locks are
installed.
Power generation
Technological advancements have made hydrodams obsolete,
and a decentralized energy market will allow ratepayers to
switch to cheaper, cleaner power supplies.
The alternatives are not viable yet and there is a
huge potential demand for the relatively cheap
hydroelectricity.
Flood control
Siltation will decrease flood storage capacity, the dam will not
prevent floods on tributaries, and more effective flood control
solutions are available.
The huge flood storage capacity will lessen the
frequency of major floods. The risk that the dam will
increase flooding is remote.
Table: Summary of the arguments in favor of and against the dam
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.
Timeline: of 3 Gorges Dam
First proposed in 1919, the
Three Gorges Dam Project
has faced many challenges
throughout the plans
development.
In 1932 the Construction
Committee of Sun Yat-Sen
created the initial plan for a
much smaller dam on the
Yangtze River.
The project lost support
during the China Civil War
in 1947, but after the
devastating Yangtze River
floods in the 1950s, the
idea was reintroduced to
the government.
In 1958, Mao Zedong
pushed for support; he
wanted China to have the
largest hydroelectric dam in
the world.
Political unrest again
delayed construction until
1979, when the State
Council approved
construction because
growing economy
demanded more electric
power.
In early 1989, the State
Council agreed in March to
suspend construction plans
because of international
pressures.
By 1992 the National
Peoples Party approved
the Three Gorges Dam
project
The project was due to be
completed in 2009.
Introduction Requirement Challenges Planning
Introduction Requirement Challenges Planning
Gestation of the Project

As early as 1919, in his article entitled A plan to develop
industry, Sun Yat-Sen mentioned the possibility to build
a series or large dams in the Yangtze with the purposes
of flood control and electricity generation
During the 1930s, under the Guomindang Party
government, several studies were undertaken to check
the feasibility of constructing a large dam in the upper
reaches5 of Yangtze River.
In 1944, an American dam expert of the US Bureau of
Reclamation, J.L. Savage, was invited to do field
research in order to survey the location of the future
dam and to draft a preliminary project.
Two years later, the Republic of China signed a contract
with the US Bureau of Reclamation, to design a large
dam in the Three Gorges area (see Fig. 2), and more
than 50 Chinese technicians were sent to the United
States to participate in the design.
However, the deep economic crisis and the upsurge of the
Chinese civil war caused the abandonment of the project
by the government of Chiang Kai-Shek in 1947 (Dai,
1994).
A severe series of floods in the Yangtze River in 1949
made the recently established communist government
strengthen its politics towards the great hydraulic projects
to control floods, planning the massive construction of
large dams, dikes and sluices for the forthcoming decades.
Introduction Requirement Challenges Planning
Feasibility Study Diagram of 3 Gorges Project
Financing Construction Cost & Time Completion
Fund Requirement Amount
Construction $ 9.5 Billion
Relocation of Affected Residents $ 10 Billion
Interest on Borrowings $ 2.3 Billion
Total $ 21.8 Billion
*2008 estimates
Fund Sources
The Three Gorges Dam Construction Fund
Revenue from Gezhouba Power Plant
Policy loans from the China Development Bank
Loans from domestic & foreign commercial bank
Corporate bond
Source: China Daily Business Weekly
65%
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 Powers issue of $194 million worth of one-
year bills on the interbank market
2003 China Construction Bank Underwriter for Yangtze Powers 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
Chinese Financiers
Financing Construction Cost & Time Completion
Year Bank Assistance
Consortium of 9 Banks

Providing a total of US$5.86 billion loan to finance the South-
North Water Diversion (SNWD) Project. The SNWD project
includes three water diversion routes connecting the Yangtze
River, the Huai River, the Yellow River and the Hai River, bringing
water to drought-hit regions such as Shandong Province, the
municipality of Tianjin, and Beijing.
2003
Minsheng Bank
Yangtze Power signed a five-year agreement. Scope: cooperation
patterns, loan granting, the collection of electric charges, personal
finance and financial innovations.
China Development
Bank
Loans to Harbin Electricity Equipment Group and Harbin Power
Plant Co. Ltd amounting to $84 million for the reconstruction of a
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
BRAZIL
Banco Nacional de Desenvolvimento Economico e
Social (BNDES)
$202 million loan to finance the purchase of turbine-generator sets from GEC-Alsthom consortium.
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).
FRANCE
Banque Nationale de Paris (& Banque de Paris et des
Pays Bas, Midland Bank SA)
$94.815 million loan to finance GEC-Alsthomcontract (1997).
GERMANY
Kreditanstalt fr Wiederaufbau (KfW) (and three
commercial banks, Deutsche Genossenschaftsbank,
Dresdner Bank, and Commerzbank)
Hermes Kreditversicherungs AG
Kreditanstalt fr Wiederaufbau (KfW), and three
commercial banks, Deutsche Genossenschaftsbank,
Dresdner Bank, and Commerzbank
Hermes Kreditversicherungs AG
$271-million loan for the purchase of Siemens andVoith turbine-generator units (1997).
$40 million export credit guarantee to Siemens andVoith.(1997).
$80 million loan for the purchase of Siemenstransformer equipment (1999).
$52.9 million export credit guarantee (1999).
JAPAN
Export Import Bank of Japan (JEXIM) and Ministry of
International Trade and Industry (MITI)
Offered a line of credit for Japanese firms bidding on contracts for electrical generating equipment (1996).
SWEDEN
Svensk Exportkredit (and Socit Gnrale of France,
Australia-New Zealand Banking Group, and Credit
Agricole Indosuez)
$351 million loan for the purchase of ABBequipment (1999).
SWITZERLAND
Bundesrat Exportrisikogarantie
Geschftsstelle fr die Exportrisikogarantie (ERG)
$143.1 million export credit guarantee for the purchase of ABB turbine-generator sets (1997).
Export credit guarantee for the purchase of ABBequipment (1999).
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.
Financing Construction Cost & Time Completion
Phase Year Construction Stage Water
Level
(m)
Preparat
ory
Phase
1993 Initial Planning 66
Phase-I
(1994-
1997)
1994 Earthmoving starts; inauguration ceremony. 66
1995 Concrete longitudinal cofferdam building
starts; resettlement program is launched.
66
1996 Xiling bridge, four-line highway from Yichang,
and Yichang airport are into service;
transverse cofferdams building starts.
66
1997 Closure and diversion of the river; about
100,000 people have been resettled.
66
P1 : 1993-1997 P2: 1998-2003 P3: 2003-2009
Financing Construction Cost & Time Completion
Phase Year Construction Stage Water
Level
(m)
Phase-II
(1998-
2003)
1998 Temporary ship-lock is put into operation 66
1999 Excavation of the double-lane ship-lock is
finished; about 230,000 people have been
resettled.
66
2000 About 295,000 people have been resettled. 66
2001 About 325,000 people have been resettled. 66
2002 The diversion channel is closed; left bank
concrete pouring completed, about 640,000
people resettled.
66
2003 The reservoir is filled up to 135 m pool
level; first trials with the double- lane ship-
lock; the four first generators are connected
to the grid.
135
Financing Construction Cost & Time Completion
Phase Year Construction Stage Water
Level
(m)
Phase
-III
(2004-
2009)
2004 The double-lane ship-lock is put into operation, ten
turbines are already connected to the grid.
139
2005 Left bank powerhouse completed (14 turbines in
operation); about 1,000,000 people have been
resettled.
139
2006 Concrete pouring on the right bank is finished; the
reservoir is filled up to 156 m; about 1,200,000
people relocated.
156
2007 The ship-lift building starts (expected); original plan
to fill the reservoir up to 156 m.
156
2008 The reservoir will be filled up to 175 m pool level
(expected); 26 turbines fully operational (expected)
175
2009 1997 target for completion of the whole project;
ship-lift will put into operation (expected).
175
Goals:
1) PV calculations and Cost-Benefits
2) Examine uncertainty.
Method:
Quantify each effect (e.g. kw Hrs. of electricity).
Value each effect (e.g. determine its price)
Sum discounted benefits minus costs
Benefits:
Power generation & Economic Growth
Flood control & Navigation improvement
Uncertainty:
Electricity generated, economic growth per KW
Hr.
Decay of electricity from sedimentation
Loss of archeological sites & Displacements




Financing Construction Cost & Time Completion



Direct Costs
Construction costs of the power station and
transmission facilities
Operation and maintenance cost
Lost land from inundation (reservoir)
Indirect Costs
Resettlement costs (including compensation
and development costs)
Lost archaeological sites
Possible accident costs (during construction,
operation and maintenance)
Environmental Costs
Aesthetic loss due to reduction in water flow
Sedimentation- lower power generation
Decline in fish catch downstream
Downstream pollution caused by dam
construction


Financing Construction Cost & Time Completion
Discounts values back to current using 5% discount
rate
Expected Results
Uncertainty Results
The 5
th
percentile, mean, and the 95
th
percentile of the cumulative NPV
with a 5% discount rate
95
th

Percentile
run
Mean run
5
th

Percentile
run
Financing Construction Cost & Time Completion
Results: The final NPV
values are 114, 424, and
1321 billion Yuan for the 5
th

percentile, mean and 95
th

percentile runs.

The cumulative NPV is
initially negative due to the
large upfront construction
and resettlement costs. As
electricity starts to flow, NPV
improves. Electricity at end of
project matters less than in
early stages.

If climate change reduces
electricity at end, it would
have only a small effect on
NPV.
Financing Construction Cost & Time Completion
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
Benefits/Advantages/Positive Effects
1. Control flooding downstream of the dam.
2. Provides water to urban areas and for agriculture-irrigation. The reservoir can store up to 5 trillion gallons of water.
3. The HEP generated will provide 15% of Chinas electricity demand.
4. This will decrease Chinas dependency on coal and therefore reduce greenhouse gas emission.
5. Thousands of construction jobs were created during the building of the dam.
6. China will be able to bring 10,000 ton ocean going vessels all the way inland, 2000km up to the city of Chongqing.
7. The dam will become a tourist attraction and will attract a lot of people to the area. Many tertiary sector/service
jobs will be created.
8. The electricity generated will help the economic development of cities such as Chongqing, population=3 million.
Financing Construction Cost & Time Completion
The giant and controversial Three Gorges Dam in
China has launched the last of its generators, just as it
hits its annual flood peak.
The final 32 generators went into operation this
week, making it the world's largest hydropower project,
built on the Yangtze River in the Hubei Province.
It is designed to decrease the risk of flooding during the
current peak rainfall season, as well as store and
distribute water during the dry periods.
A series of incredible photos show the sheer force of the
flood water released from seven spillways after heavy
downpours in the upper reaches of the dam caused the
highest flood peak of the year.
Water from the Yangtze River upper gushed at up
70,000 cubic meters per second into the dam's
reservoir yesterday.
25 July, 2012 on dailymail.co.uk
Reference:
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%2F%2Fwww.undp-alm.org%2Fsites%2Fdefault%2Ffiles%2Fdownloads%2Fsession_9_-_mendelsohn.ppt&ei=g2P2U-
DBKYiyuATd8YKQBw&usg=AFQjCNHFwGl3Ljd2BG7p-QLwTr7K5wtqLw&bvm=bv.73373277,d.c2E
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4. http://www.power-technology.com/projects/gorges/
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generates-power-15-nuclear-reactors.html
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