The Yellow River is the second largest river system in the People's Republic of China. Periodic floods have been a significant constraint to the economic growth of this otherwise very productive area. Discussions between the Yellow River Conservancy Commission (YRCC) and ADB staff, along with work under a project preparation grant, indicated that the most useful way for ADB to support the new initiatives of the YRCC would be through a combination of capacity-building efforts for flood management and physical investments spread widely across the lower reaches of the river, to strengthen embankments and improve the security of villages within the inner floodplain and immediately adjacent to it. Since these required physical investments were discrete subprojects, they were ideally suited for financing through the sector loan modality.
This study validates the completion report's assessment of the project, which was expected to trigger stronger economic growth and increased resident security and environment quality in the lower Yellow River basin by reducing the incidence of flooding and resultant damage. IED overall assessment: Successful