A syndicate of nine Chinese banks led by the State Development Bank (SDB) will provide 48.8 billion yuan (5.9 billion US dollars) in loan to support China's gigantic south-to-north water diversion project, said a SDB source Wednesday.

The investment for the first-phase construction of the east route and central route of the water diversion project is estimated at 124 billion yuan (14.9 billion US dollars). Apart from the state budgetary allocation and a special fund, the work needs long-term, steady and sufficient financial support from banks.

The bank syndicate, which also includes China Construction Bank and China Minsheng Banking Cooperation, was born against this backdrop, said the bank official.

The whole gigantic project is expected to cost some 486 billion yuan (59 billion US dollars). Construction began on Dec. 27, 2002 and is expected to take 50 years to be completed. Three man-made rivers, all more than 1,000 km in length, to act as the eastern, central and western division lines, which will link together the four major rivers of the Yangtze, Yellow, Huaihe and Haihe.

Source: Xinhua