Three Gorges Dam dam. An important function of the dam is to control flooding, which is a major problem for the seasonal river of the Yangtze. Millions of people live downstream of the dam, with many large, important cities like Wuhan, Nanjing, and Shanghai situated adjacent to the river. Plenty of farm land and China's most important industrial area are built beside the river. The reservoir's flood storage capacity is . This capacity will reduce the frequency of major downstream flooding from once every ten years to once every 100 years. The dam is expected to minimize the effect of even a "super"
Three Gorges Dam government estimated that the Three Gorges Dam project would cost 180 billion yuan (US$22.5 billion). By the end of 2008, spending had reached 148.365 billion yuan, among which 64.613 billion yuan was spent on construction, 68.557 billion yuan on relocating affected residents, and 15.195 billion yuan on financing. It was estimated in 2009 that the construction cost would be recovered when the dam had generated of electricity, yielding 250 billion yuan. Full cost recovery was thus expected to occur ten years after the dam started full operation, but the full cost of the Three Gorges Dam was recovered by December