Management and Construction of the Three Gorges Project

Huichao Dai1; Guangjing Cao2; and Huaizhi Su3

Abstract: The owner-responsibility system is conducted for implementation of the Three Gorges Project 共TGP兲. For the construction
management of the project, the contracting system, the contract administration system, and the construction supervision system are
executed for the project management. Contractors for civil projects are determined through bidding and contracting. The permanent
equipment and construction materials are purchased through bidding. Some of large-sized construction machines and mechanical and
electrical equipment are procured by the international competitive bids. Qualified engineers from qualified engineering bodies, scientific
research organizations, and construction companies are selected for the construction supervision. This paper covers the construction of the
TGP in some detail, particularly the main dam structure, diversion work, the construction program, and management, project cost, and
financing.
DOI: 10.1061/共ASCE兲0733-9364共2006兲132:6共615兲
CE Database subject headings: Construction management; Contract management; Project management; Water resources.

Introduction scheduled to be completed by 2009. From 1999 to 2001, new

world records were created in succession in terms of yearly con-
The Three Gorges Project 共TGP兲 is the key project in developing crete placement. The dam rose to el.185 m on the left bank in
and harnessing the Yangtze River, with huge comprehensive 2002, the double-way and five-step shiplock was completed, and
benefits of flood control, power generation, and navigation im- the diversion channel was closed successfully in the same year.
provement. It is the largest water conservancy project ever built in Milestone results were achieved in the TGP in 2003, smoothly
realizing the three major targets such as reservoir impoundment,
China, and also in the world. With the normal pool level at
navigation improvement, and power generation. Since the com-
175 m, the total storage capacity of the reservoir is 39.3
mencement of the construction, sufficient funds for the project
billion m3.
have been in place and the project cost was perfectly controlled
The project consists mainly of the dam, powerhouses, and
within the approved budget in the preliminary design, the project
navigation structures. The dam is of a concrete gravity type with
construction has progressed smoothly in accordance with the
a total length of 2 , 309.49 m at dam axis, a dam crest of 185 m, master schedule, and the construction quality has satisfied the
and maximum dam height of 181 m. The power station is a dam- designed requirements 共Zhang 2003兲.
behind type with two powerhouses, the left one and the right one,
housing 14 and 12 generating units, respectively with unit in-
stalled capacity of 700 MW, totaling 18, 200 MW. On the right
Construction Planning and Scheduling
bank, room is preserved for six generating units to be expanded in
the later stage. The navigation structures, located on the left bank,
consist of the continuous double-line five-step shiplock and the Quantities of Construction Work
single-line single-step vertical shiplift. The major quantity bills for the principal structures and diversion
The TGP was planned to be completed in 17 years in three works are as follows:
phases. The preparatory work started in 1993, the river closure • Earth-and-rock excavation 1.0283⫻ 108 m3;
was achieved in 1997, the first group of units and the permanent • Earth-and-rock fill 3.198⫻ 107 m3;
shiplocks were in service in 2003, and the overall project is • Concrete 2.794⫻ 107 m3;
• Reinforcing steel 4.63⫻ 108 kg;
1
Professor, China Three Gorges Project Development Corporation, • Metal works 2.565⫻ 108 kg; and
Yichang 443002, China. E-mail: [email protected] • Installation of hydro turbine generating units 26 sets
2
Professor, China Three Gorges Project Development Corporation, 共18, 200 MW兲.
Yichang 443002, China. Work quantities broken down into detail according to struc-
3
Professor, College of Water Conservancy and Hydropower tures are listed in Table 1.
Engineering, Hohai Univ., 1 Xikang Rd., Nanjing, Jiangsu Province
210098, China 共corresponding author兲. E-mail: [email protected]
Note. Discussion open until November 1, 2006. Separate discussions River Diversion
must be submitted for individual papers. To extend the closing date by
Three-phase diversion scheme was adopted for the project con-
one month, a written request must be filed with the ASCE Managing
Editor. The manuscript for this paper was submitted for review and pos- struction 共Dai and Zhang 2002兲.
sible publication on August 17, 2004; approved on September 7, 2005. In the first construction stage, the subriver on the right side of
This paper is part of the Journal of Construction Engineering and Man- the Zhongbao islet is enclosed, by taking advantage of the islet to
agement, Vol. 132, No. 6, June 1, 2006. ©ASCE, ISSN 0733-9364/2006/ build the phase I earth and rock cofferdam. At the same time, the
6-615–619/$25.00. open diversion channel is excavated and the longitudinal roller

JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT © ASCE / JUNE 2006 / 615

Table 1. Quantity Breakdown of Construction Work of TGP
Earth-and-rock Earth-and-rock Reinforcing Installation of
excavation fill Concrete steel Metal works generating units
Structures 共106 m3兲 共106 m3兲 共106 m3兲 共106 kg兲 共106 kg兲 共sets/MW兲
Dam 10.38 — 16.00 172 71.6 —
Powerhouses 19.58 3.03 3.45 124 77.2 26/18,200
Navigation facilities 55.84 7.86 5.35 165 98.1 —
Diversion works 17.03 21.09 3.14 2 9.6 —
Total 102.83 31.98 27.94 463 256.5 26/18,200

compacted concrete 共RCC兲 cofferdam is constructed in the tenance after the completion of the project, and is also responsible
construction pit. Meanwhile, the construction of the temporary for the financing and reimbursement of investment including the
shiplock on the left bank of the river is constructed. In this con- fund for resettlement.
struction phase, the river flow and navigation went through the As determined by the State Council, the principles of the so-
main river course. cialist market-oriented economy and the common international
In the second construction stage, the construction is started practice are adopted in TGP’s construction. That is, the bidding
with building the transverse cofferdams, so as to form, together management, contract management, and construction supervision
with the completed RCC longitudinal cofferdam, into the phase II system centering on the project’s legal entity responsibility are
construction pit. The construction of the spillway, intake dam, and carried out for the project construction and management.
power plant on the left bank has begun. Simultaneously, the per- The headquarters of CTGPC is located in Yichang City. There
manent shiplock and shiplift are constructed on the left bank. In are several departments and subsidiaries under the CTGPC such
this stage, the river flow is diverted through the open diversion as planning, financing, scientific management, Gezhouba power
channel, and barge fleets and passenger boats pass through either plant, etc. In the dam site, the project construction department has
the open channel or the temporary shiplock. been established which is in charge of the overall coordination
In the third construction stage, the upstream phase III RCC and management of the construction. Under this department, the
cofferdam is built in the open channel, and the impoundment of subproject departments take the responsibility for management of
the reservoir is up to the elevation of 135 m. The left bank power individual construction items.
station and permanent shiplock is put into operation. In the mean- The Resettlement Bureau under TGPCC was established,
time, the phase III cofferdams together with the longitudinal cof- which is responsible for setup of resettlement policies, resettle-
ferdam, form the phase III construction pit for the construction of ment planning, supervision on resettlement progress, and quality
the right bank dam and power plant. During this period, the river and coordination of the issues arising from the resettlement ex-
flow is discharged through the outlets in the spillway dam, while ecution. The local governments of Chongqing and Hubei Prov-
the boats pass through the permanent shiplock. ince are in charge of the resettlement practice specifically includ-
ing resettlement, industry relocation, and household rebuilding.
Scheduling
The total duration of construction was divided into three construc- Project Management
tion stages.
1. Stage I, from 1993 to 1997, is for the construction prepara-
tion and the phase I works, which is marked with the river Design Management
closure; The design of TGP is undertaken by the Yangtze Water Resources
2. Stage II, from 1998 to 2003, is for phase II works, which Commission under the Ministry of Water Resources. The techni-
marked the generation of electrical power by the first batch cal design is reviewed and approved by the Technical Committee
of generating units and the operation for ship traffic of the of the CTGPC by means of panels of experts. The bidding design
permanent shiplock; and is reviewed and approved by the CTGPC. The detailed construc-
3. Stage III, from 2004 to 2009, is for phase III works, which is tion drawing design is reviewed and approved by the Construc-
marked with the operation of all generating units and tion Department under CTGPC in conjunction with various super-
completion of the project. vision units. Expert comments and ideas are widely called for by
CTGPC on the key technical issues arising from the project to
encourage innovation, give full play to collective wisdom, and
Basic Management Frameworks for Construction avoid incorrect decisions.

The State Council Three Gorges Project Construction Commis-

Bidding and Contracting Mechanism
sion 共TGPCC兲 is the top decision-making authority for the Three
Gorges Project. The TGPCC established the Administrative The overall project is divided into subprojects and packages or
Office and the Resettlement Development Bureau responsible for work breakdown structures based on their specific features and
the routine work of TGPCC and resettlement, respectively. the projected progress schedule. These subprojects and packages
China Yangtze Three Gorges Project Development Corpora- are in turn awarded to qualified contractors by process of public
tion 共CTGPC兲, authorized to be established by the State Council, bids.
is the owner of the TGP. CTGPC is responsible for the overall Contractors for civil projects are selected through bidding and
construction of TGP and its management of operation and main- contracting. The permanent equipment and construction materials

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are purchased through bidding. Some of the large-sized construc- CTGPC, regularly reporting to the CTGPC about the quality.
tion machines and mechanical and electrical equipment are pro- Arrival inspection, customs inspection, and site tests are car-
cured by international competitive bids 共BS兲. ried out for the transportation process. The Material Test
The project items are implemented by bidding in phases on an Center, Measurement Center, Safety Monitoring Center, and
item-by-item basis, managed item by item, and integrated by Metal Structure Test Center under CTGPC perform their own
summarization. responsibilities according to relevant regulations.
Open bidding, fair competition, equitable evaluation, and The Three Gorges Project Construction Committee under the
collective decision are carried out during bidding activities. The State Council 共TGPCC兲 established a special panel of experts for
bidding activities for the project items are integrally organized the TGP quality inspection, responsible for the regular authorita-
and the bidding procedures are strictly controlled. The Three tive inspection and evaluation of the construction quality of TGP.
Gorges International Bidding Co. Ltd is responsible as the bid- This quality supervision system has served as a guaranteed
ding agent for the construction, and evaluation experts are invited role to the timely alleviation of quality risks, improvement of
as stipulated by the bidding law to perform the evaluation inde- engineering quality, and construction of a first-rate project.
pendently.
Control of Construction Progress
Construction Supervision
Before mobilization of the project implementation, 70 years had
The supervision of TGP is managed by the Construction Depart- been spent on the feasibility study, planning, and engineering of
ment under the CTGPC. The former is responsible for the Three Gorges Project. In early 1993, the preparatory work and the
coordination and integration of various construction supervision construction of Phase-1 diversion works started. On December
units. The construction supervisors are invited by CTGPC from 14, 1994, the former Premier Lipeng announced the official com-
qualified supervision agencies to supervise the construction by the mencement of the project at the construction site.
contractors. At present, five major supervision companies and 972 Since the commencement of the construction, sufficient funds
supervisors including some international supervisors are working for the project have been in place and the project cost was per-
at the site for the supervision of a variety of contracts. fectly controlled within the approved budget in the preliminary
design, the project construction has progressed smoothly in accor-
Quality Assurance System dance with the master schedule, and the construction quality has
satisfied the designed requirements.
To ensure the quality control of the construction, a series of cri- CTGPC made a master schedule according to the objectives of
teria and standards which meet both design requirements and the three phases. Based on this, the control of progress of each
national standards have been established. The required organiza- item was prepared and the bidding progress therefore was formu-
tions such as the test center for concrete and raw materials, the lated. Adjustment was timely, made up of the component progress
measuring center, the safety monitoring center, the test center for through contract management during the construction to ensure
metal works, and the meteorological and hydrologic forecasting
the achievement of the objectives of the control of progress on the
center have been set up to constitute the quality assurance system.
critical path.
Based on the existing national standards, ministerial standards
In the last decade, the preset progress objectives have funda-
and the special requirements for the TGP design as well as the
mentally been achieved in various items, thus ensuring the goal of
project construction characteristics, CTGPC, organized the prepa-
the master schedule. The successful river closure on November 8,
ration of the Quality evaluation standards for the China Yangtze
1997 completed the task of Phase 1 construction. The blasting of
Three Gorges Project. Over 90 quality control standards have
Phase 2 upstream and downstream cofferdam was successfully
been written in volumes and implemented to date 共Dai 2003, Dai
performed on May 1 and July 1, 2002, respectively, as scheduled
and Zhang 2003兲.
and passed the stage inspection organized by the State. The mas-
1. Setup of quality management agencies and responsibility
ter schedule has been effectively controlled. Various critical junc-
systems. Responsibility systems have been established for
tions have been successfully passed and it is expected that the
different links from raw materials, machining, and manufac-
whole project will be completed in 2009 as planned.
ture, storage, and transport to the construction. The CTGPC
organizes the involved parties to set up a Three Gorges
Project Quality Management Committee, responsible for or-
ganization, coordination, supervision, and guidance. Project Cost and Financing
2. Setup of quality accident treatment procedures, quality sys-
tem of rewards and penalties, and the quality evaluation sys- Project Cost
tem of individual items. 135,107 individual items have been
evaluated from the commencement of the project in 1993 How much money this great project needs has been a puzzle and
until the end of 2002. The quality of the project under con- of public concern. The design process of projects in China goes as
struction is good in general. follows: feasibility study, preliminary design, technical design
3. Setup of quality inspection and step-by-step control systems. and bidding design. Based on the preliminary design approved by
The factory inspection of raw materials is performed by the Government in 1993, the total cost for the Three Gorges
qualified agencies entrusted by the CTGPC in accordance Project in static terms will be 90.09 billion Chinese Yuan 共based
with the stipulated standards and the system of factory cer- on May 1993 value兲, 40 billion of which will be for resettlement.
tificate of qualification is carried out. The process of making However, the duration of the project is some 17 years, during
the steel structures and the generating unit equipment in- which the inflation index and interest rate will vary. It was pre-
volved are inspected in factories by qualified domestic and dicted in 1993 that another 74.9 billion Chinese Yuan would be
foreign manufacture supervision agencies entrusted by needed to compensate for price escalation during the construction

JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT © ASCE / JUNE 2006 / 617

period. In accordance with the integrated financing scheme for the submitted to the Three Gorges Project Construction Commit-
project, a total amount of 38.9 billion will be reimbursed for the tee under the State Council and then examined and decided
interest repayment of loans. by TGPCC in conjunction with the State Planning Commis-
sion and the experts of the intermediaries. The rate is exam-
Financing and Fund Sources ined and decided every year for the previous year, which will
be the basis for CTGPC to compensate the contractors ac-
The fund was established by the Central Government by levying cording to the difference of the bidding price and the quota-
0.004– 0.007 RMB per kilowatt hour from the national power tion of that year.
consumption and this fund serves as the national capital to be 4. Budget control. Based on the preliminary budget approved
poured into CTGPC. Presently, the fund amounts to some 4–4.5 by the State, the implementation budgets of the owner were
billion Yuan yearly. During the 17 years of construction, the fund prepared and adjusted according to the technical design and
will total 80–90 billion. then the control prices in the implementation of the contracts
1. Power revenues from existing Gezhouba Power plant. The of individual items were prepared according to the bidding
existing Gezhouba Power plant, with the total installed ca- contract prices of the items. Analyses are performed of the
pacity of 2 , 710 MW and an annual power output of implementation and control of the annual budget to achieve
15 TW h, is the subsidiary of CTGPC. The power revenues both the item and the overall budget controls. The practice
will be used for the construction of TGP. This source will indicates that the fiscal control by CTGPC is good.
reach 8–9 billion in the 17 year construction period.
2. Power revenues from Three Gorges Project itself. The first
group of the generating units of Three Gorges Project was to
Resettlement and Relocation
be in service by 2003. The power revenues from the project
during 2003–2009, expected to be 35–40 billion, will be also
used for the construction of the project. Influence of Reservoir Inundation
3. Bond issuing. Six billion Yuan of corporate bonds has al-
The reservoir forming the Three Gorges Project is a valley-like
ready been issued for the project. It is planned that bonds be
reservoir, which is 650 km long with the tail-water back to
issued every year during the construction period and the
funds from this source will total 15 billion Yuan. Chongqing, 500– 1 , 000 m wide 共660 m on average兲 and covers
4. Short-term and long-term loans 共domestic兲. Short-term and 1 , 084 km2. The inundation covers 20 counties and cities and af-
long-term loans from domestic banks are used for filling the fects a population of 840,000 based on a 1994 survey. The inun-
gap in funds of the project. dated farmlands cover 17, 200 ha. Relocatees will be resettled
5. Export credits and syndicated loans 共international兲. Export over 17 years on a year by year basis and therefore the final
credits and syndicated loans are required for the procurement number of relocatees is estimated to be 1.13 million because of
of the imported equipment. So far, $1.1 billion United States population growth.
equivalent to 9.1 billion RMB has been introduced to the
construction of the project. Resettlement Cost
The above-mentioned fund sources are expected to be suffi-
cient for the financial requirements of the Three Gorges Project. The cost of resettlement will be 40 billion Chinese currency
共based on May 1994 value兲, accounting for some 44% of the total
project costs of 90 billion Yuan. Taking into consideration price
Project Cost Control escalation during the project construction period, the final cost for
The cost estimate approved by the State for TGP was made on the resettlement is estimated to be approximately 59.7 billion exclud-
price level at the end of May 1993. The construction duration of ing the loan-borne interest repayment that will be directly paid to
TGP is 17 years. For this purpose, investment control measures banks by CTGPC.
were taken as follows:
1. Static control. The investment is controlled within an esti- Resettlement Policy
mate budget approved by the State. The project investment is
controlled by a static budget to optimize the project manage- The Chinese Government attaches great importance to the re-
ment and reduce the cost and various resettlement-related settlement aspect of the project. Concerning the fact that the res-
expenses. ervoir area is a relatively poor, underdeveloped, and barren region
2. Dynamic control. During a 17-year construction period of the with a dense but low income population, the funds allocated for
project, the price indexes change every year and the bank the resettlement will help this region overcome its poverty and
interest floats, so costs must be adjusted every year in light of finally achieve prosperity. The Government established a series of
the comparison of the price indexes of that year with those of resettlement policies to implement the development-oriented re-
1993. The future fund demand is predicted every year to settlement, hoping that as many relocatees as possible can be
carry out the dynamic management. Payment is made by moved from mountainous areas to the plain. Additionally, the
means of dynamic price difference and financing cost re- economy of the reservoir areas will be restructured, where lag-
duced through various financing measures. ging industries will be closed and old towns will be rebuilt. With
3. Cost escalation. Price difference adjustment has been per- the sponsors and help from enterprises in developed regions, in-
formed for most of the contracts and compensation made to vestments will be poured into the reservoir areas to rebuild and
contractors once a year. Intermediaries are entrusted by restructure industries there and improve communications as well
CTGPC to analyze the price of construction materials, equip- as power supply. In the past 10 years, 300,000 people have been
ment, various commodities, and labor nationwide so that the resettled with their standard of living upgraded. This has been a
rate of price escalation influencing TGP was proposed and great success of the resettlement policy.

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Impacts on Ecology and Environment parts. Since 1993, over 7,000 engineers from 32 countries and
areas visited the construction site, attending technical seminars
Impacts of Three Gorges Project on ecology and the environment with the Three Gorges Company. The international procurement
have been attracting worldwide attention. The environment im- for 14 generating units of the left-bank powerhouse and the con-
pact assessment had been done during the planning and the veri- struction machines was completed and the contracts were
fication. It is concluded that the project will create both positive awarded. During the construction of the project, outstanding en-
and negative impacts on ecological environment but that the posi- gineers and experts worldwide were invited by the company for
tive will prevail over the negative. The environmental benefits technical consultation and construction supervision on the project
created by the project lie in the middle and lower reaches of the construction and project management.
river and the negative impacts will be produced in the reservoir
areas. But most of the negative impacts can be mitigated or elimi-
nated by countermeasures. Conclusions
The environmental benefits are mainly as follows: Upgrading
the flood-preventing ability of the middle and lower reaches of China is a developing country with a vast territory. A large num-
the river and significantly mitigating the flood-caused environ- ber of its rivers, seas, and lakes are still under the semiprimitive
mental deterioration in the Dongting Lake area and Jianghan state. Due to the long-term development of the geologic era and
Plain regions. The enormous power produced by the project will impacts of mankind’s activities, the ecosystem of the Yangtze
replace the annual burning of coal of 50 million t, avoiding emis- basin is becoming unbalanced and the environment is deteriorat-
sion of waste gas, the discard of wastewater, and the discard of ing. Therefore, human beings must fully understand Nature while
waste residue so as to improve the weather conditions of the they are developing and harnessing the rivers, applying the scien-
reservoir areas and the water quality of the middle and lower tific principles and the concept of sustainable development.
reaches of the river in dry seasons. Mobilization and implementation of Three Gorges Project was
Negative impacts on the environment arise from the inunda- the result of decisive decision-making from the Chinese Govern-
tion. Due to the rise of water level and submerging of rapids, the ment on the basis of the above-mentioned ideas and concepts.
natural landscape in the Three Gorges river section will slightly The construction of the Three Gorges Project is going
change. Some cultural relics and underground ancient graves will smoothly and all the construction packages and the resettlement
be submerged by the reservoir. Measures are being taken to re- are being carried out in accordance with the master schedule.
serve or relocate those relics. After completion of the existing Although we have another 5 years to go to finish the project and
Gezhouba Project and Three Gorges Dam, migration passage for more challenges await us, we are confident of achieving our tar-
rare aquatic life, the Chinese surgeon, for example, was blocked. gets and goals. Now, the great project can be seen on the land,
Further efforts will be made to strengthen the successful artificial witnessed in the air, or contour-profiled even from satellite. The
spawning and breeding of those species. benefits from the project are being realized and its objectives
There is special emphasis placed on the environmental issue gained.
caused by the resettlement. The careful plan has been worked out
and is being well performed. After formation of the reservoir, the
river in the reservoir regions will flow more gently, pollution on References
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intensity concrete construction of the Three Gorges Projects.” J. Hy-
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temperature control in Three Gorges Project and its results applica-
The construction of Three Gorges Project attracted worldwide tion.” Adv. Sci. Technol. Water Resources, 23共1兲, 17–21.
attention and also promoted the relationship and cooperation be- Zhang, C. R. 共2003兲. “Technical breakthroughs in the construction of
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