Beijing, Oct 26 (IANS): Work has begun on a water resource allocation project in Hubei province that will be the largest hydro engineering project of 2015 in China, a media report said on Monday.

Supplying water to almost five million people, the project will fundamentally resolve water shortage problems in the north of Hubei province, the China Daily reported.

The project worth 17.95 billion yuan ($2.8 billion) and a total construction period of 45 months.

In terms of investment, area covered and number of people served, the project is the biggest ever in Hubei. It will create a reservoir on the river Dan with water redirected towards the southeast.

At the commencement ceremony, Water Resources Minister Chen Lei said the region north of Hubei is an important grain production base and the automobile industry hub of China.

A reliable water supply will guarantee urban water supply, ensure grain production, improve the regional environment and help with poverty relief efforts, Chen observed.

Wang Zhongfa, director of the Water Resources Department of Hubei province, explained that the water delivery line will be 270 km long and the project is an artesian diversion work, with a planned annual diversion discharge of 1.4 billion cubic metres.

The project will benefit 4.82 million population and about 313,000 hectares of farmland.