In a project update, ADB noted that the proposal for a loan of US$28M for the project in Gansu province could be only months away.

The project envisages 60MW of installed capacity being added to the site, which is one of a number of locations being developed on the Heihe river cascade. Including plants already in operation, the cascade is planned eventually to include seven hydro projects built.

The loan funds for the project are being sought as part of a rural hydro power development investment programme for the province.