Hunan Lingjintan Hydropower Project in the People's Republic of China (Loan 1318-PRC) | Asian Development Bank

Hunan Lingjintan Hydropower Project in the People's Republic of China (Loan 1318-PRC)

Evaluation Document | 31 December 2005

This report evaluates the performance of the Hunan Lingjintan Hydropower Project aimed to accelerate the development of hydropower resources in Hunan Province in the People's Republic of China.

The Lingjintan Hydropower Project is a low-head, run-of-river hydropower station on the Yuanshui River in Hunan Province. It was built to accelerate the development of hydropower resources in Hunan Province. An additional benefit expected from the Project was the improvement in navigational conditions on the Yuanshui River between Wuqiangxi and Lingjintan as a result of the creation of the Lingjintan reservoir and the reregulation of the Wuqiangxi discharges by the Lingjintan station. The expected beneficiaries of the Project were the industrial, commercial, and residential electricity consumers of Hunan Province, and people navigating the Yuanshui River.

A resettlement plan laid out the design for the relocation of persons affected by the Project, and an environmental protection program established a monitoring system to determine the effects of the Project on air and water quality and noise in the Lingjintan area.

Summary of findings

Overall, the Project was rated "successful". It was found to be relevant, effective, efficient, and sustainable with substantial institutional development and other impact.

Physical construction was as planned, with no major problems, and largely on schedule throughout the contract period. All excavation was done, civil works were built, and metal structures and other structural elements in the dam were installed as programmed. The implementation of the Project on schedule indicates highly successful planning and scheduling.

Lessons

  • One feature that the Project apparently lacked is expert review of the hydrology, which is of prime importance in water resource projects.
  • Using ADB's international bidding procedures, and an experienced executing agency and consultants, was important, and deputizing procurement specialists who were familiar with ADB's procurement guidelines was useful in preparing and implementing a successful project in a developing country.
  • More diligence in establishing prequalification criteria and evaluating prequalification submissions (such as the prequalification of the turbine supplier for the Project) should improve the likelihood of success of a project.
  • Major changes in contracts, and particularly costly additions, should be evaluated in terms of the overall economics of the project, as well as the technical merits.
  • The common practice in some developing countries of restructuring government and executing agencies during implementation and operation should be anticipated during appraisal so that lengthy deliberations are avoided and separate evaluations of the capabilities of the new entities, and subsequent modifications of loan and project documents, would not be necessary.
  • Certain institutional constraints in implementing desirable contractual provisions should be recognized at the start so that they do not become persistent and contentious issues during implementation.
  • Greater prudence should be used in developing assumptions related to tariff increases so that project benefit targets are realistic.
  • ADB project staff should obtain data for the project completion report from the executing and implementing agencies immediately after the project and before loan closure to ensure the availability of accurate and reliable information, and make use of the institutional memory of staff who were responsible for project implementation.

Contents 

  • Basic Data
  • Executive Summary
  • Map
  • Introduction
  • Design and Implementation
  • Performance Assessment
  • Other Assessments
  • Issues, Lessons, and Follow-up Actions
  • Appendixes