The project would channel as much as 48 billion cubic meters of water a year to northern cities and farms, said Zhang Chunyuan, vice-chairman of the Committee on Population, Resources and the Environment of the Chinese People's Political Consultative Conference.

It's "a megaproject that will involve various technologies and require a large amount of investment," said Zhang, without giving details. "I am confident the government will take into consideration the possibility of introducing foreign investment and technology."

China has one of the most severe water shortages in the world with demand exceeding supply in 400 of its 699 cities.

The problem is made worse by the fact that 80 percent of its water is in the south, said Chen Bangzhu, chairman of the Population, Resource and Environment Committee.

The Ministry of Water Resources will complete its feasibility study on the project by June, after which the plan will have to be approved by the State Council, or Cabinet.

China has studied the project for 50 years, though completion is being accelerated to avoid water shortages that are restricting economic development, Chen said.

"China is suffering from serious water shortages in its northern regions which are affecting the livelihood of the people and endangering the ecosystem," Chen said.

Water could be diverted north via three routes. The 1,150-kilometer eastern route would shunt water from the lower reaches of the Yangtze north along the route of China's ancient Grand Canal (Hangzhou to Beijing), according to Xinhua news agency.

A 1,246-kilometer central line would tap the Hanhe River, a tributary of the Yangtze, from the Danjiangkou reservoir. The Danjiangkou dam would need to be raised, extending the reservoir and displacing 220,000 people.

A third proposed route to divert water from the mountains of western China would be more complicated, Zhang told reporters.

(Eastday.com.cn 03/08/2001)