In April, the Three Gorges Dam on the Yangtze River near Yichang, Hubei Province, attracts an endless stream of tourists. "It's thrilling to sail above the high gorges and flat lakes and witness the grandeur of the Three Gorges Project! It represents the wisdom and creativity of the Chinese people." A tourist exclaimed in his WeChat moments after visiting the Three Gorges Dam. The Yangtze River Three Gorges Project is by far the largest water conservancy project and the hydropower project with the most extensive comprehensive benefits in human history. By the end of 2020, the Three Gorges has produced more than 1.3991 trillion kilowatt-hours of high-quality clean electricity, which is equivalent to saving more than 400 million tons of standard coal. It has reduced the unit transportation cost of the Yangtze River by one-third, and the accumulated cargo through the locks of the Three Gorges Dam has exceeded 1.5 billion tons, making it live up to the name "Golden Waterway".
The construction of the Yangtze River Three Gorges Water Conservancy Project is a centuries-old dream of the Chinese nation. The overall construction took 28 years since the National People's Congress voted on the Resolution on the Construction of the Yangtze River Three Gorges Project in 1992, to the official start of the Three Gorges Water Conservancy Project in 1994, and then to the completion of the overall acceptance in November 2020. During this period, CDB, with its high sense of historical responsibility and spirit of commitment, provided strong financing for this century-long project, which is of great merit to the present generation and will benefit generations to come. CDB leveraged the power of development finance to consolidate the financial cornerstone of the Three Gorges Project.
In 1994, when the Three Gorges Project officially began, CDB was established to provide financial support for China's infrastructure, basic industries and pillar industries. The Three Gorges Project had a large investment, long construction period, and many uncertainties, so it was difficult for the financial resources to bear such a huge capital investment, and many banks were also discouraged. In 1994, CDB provided a loan of RMB 30 billion for the Three Gorges Project, which not only guaranteed the funds required for the construction of the first phase of the project, but also laid a solid foundation for the Three Gorges Corporation to broaden its financing channels, optimize its debt structure and form a rolling development capacity. In 1996, CDB established its only branch at that time, the Wuhan Branch, and sent a working group to China Three Gorges Corporation (CTGC) to provide more timely and better financial services for the construction of the Three Gorges Project. Since then, the two sides have maintained a close cooperative relationship. Up to now, the balance of CDB's on-balance sheet loans to CTGC exceeds 30 billion yuan. CDB has always been the main supporter for the development of CTGC.
In recent years, CDB has continued to expand the areas of cooperation with CTGC, supporting the construction of large-scale hydropower projects and offshore wind power projects, contributing to the promotion of China's energy restructuring and economic and social development. On the Yangtze River, CDB has provided comprehensive financing support for the CTGC's Xiangjiaba, Xiluodu, Baihetan and Wudongde hydropower projects. In April 2018, CDB served as the leading bank for the syndication of the Wudongde and Baihetan hydropower projects, and organized 10 financial institutions to form a 20-billion-yuan Phase I syndication, which efficiently ensured the construction of the projects. By the end of 2020, CDB has issued a total of 46.5 billion yuan in loans for the construction of large-scale hydropower projects of CTGC.
In addition, CDB actively supports CTGC's offshore wind power development on a continuous basis, by providing funds for a number of offshore wind power and wind power industrial park projects in Dalian Zhuanghe, Jiangsu Dafeng, Guangdong Yangjiang, Fujian Xinghua Bay, etc. The cumulative credit loans exceeded 48 billion RMB, with 11 billion RMB disbursed.
CDB also vigorously supports CTGC's deep integration into the Yangtze River Economic Belt and its role as the backbone of the Yangtze River protection, assists the CTGC to lead the Chinese capacity fleet to "go to sea", and actively supports the role of the "Overseas Three Gorges" in promoting global energy revolution.
The construction and development of the Three Gorges Project has become a model case for development finance to help the development of the real economy. Going forward, CDB will implement the new development philosophy in line with the new development stage, serve the construction of a new development pattern, continue to increase support for national key areas, major strategies and weak links in economic and social development, and provide high-quality financial services for the construction and development of more pillars projects like the Three Gorges Project.
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