The Source of Founds of Three Gorges Project

The Whole Investment

The static investment of Three Gorges Project is 90.09 billion Yuan, among which, the key project is 50.09 billion Yuan and the immigration project is 40 billion Yuan. The dynamic investment is 20.39 billion Yuan, considering the price of commodities and variable rate of interest. The first stage of the project (before the river closure) needs about 19.5 billion Yuan, the second stage (when the first generator units began generating power) needs 34.7 billion Yuan, the third stage (all the generator began the operation) needs 3.5 billion Yuan, and the items of immigration needs about 6.9 billion Yuan. By the end of 2009, the whole investment of Three Gorges Project had added up to 18.49 billion Yuan.

Three Gorges Found

Brief Introduction of Three Gorges Found

Three gorges found was funded in 1992, and played an important part in the construction of the Three Gorges Project. By the end of 2005, the whole capital had been 62.3 billion Yuan, amounting to 51 percent of the whole investment of Three Gorges Project, being the most stable resource of the found of Three Gorges Project.

The Establishment of Three Gorges Found

In 1992, the State Council made a decision that 3 li money would be collected per kilowatt-hour for the found of Three Gorges Project. The collected scope includes all the electro-scope, except for the Tibet, the poor area, and the electricity used for agricultural irrigation. In 1994, the collect standard was improved to 4 li per kilowatt-hour. In 1996, the collect standard of the benefited area of three gorges project and the zone with developed economy was improved to 7 li Kilowatt-hour. At the same time, the State Council made the Gezhou Dam power plant under the management of the Chinese Three Gorges General Company, the profit and tax the power plant turned over the Central Authorities were used as the Three Gorges Found. In 2003, the Ministry of Finance authorized that the income tax of Three Gorges Power Plant during the construction been given to the Three Gorges General Company, which was the capital the state poured into the Three Gorges Project.

The Importance of Three Gorges Found

The hydroelectricity is a typical capital intensive enterprise, and the shortage of capital is a key factor of influencing the development of the hydroelectricity of the global, especially for the developing countries. The found of Three Gorges Found made the Three Gorges Project not to be influenced by the capital anytime of the construction. In the construction of the Three Gorges Project, Three Gorges Found Was the most stable and reliable source of founds, and in the operation period of the project, Three Gorges Found was the prerequisite of the success of the operation of the item.