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XINING, Feb. 12 (Xinhua) -- More than 250,000 farmers and herders in northwest China's Qinghai Province have benefited from a water project that was aimed at providing clean drinking water and improving irrigation for the locals.

In a bid to ease a credit crunch and secure growth in the wake of weak external demands, China's central bank announced mid-February that it would lower banks' reserve requirement ratio (RRR) by 50 basic points.

China's economy grew at its slowest pace in almost three years in the first quarter, with its gross domestic product expanding only 8.1 percent during the period.

Liu said a reserve-ratio cut would be more effective at encouraging bank lending and accelerating M2 growth than a reduction in the intensity of open market operations.

Northeastern regions have been seeing less rain since last autumn, with precipitation down 30 to 80 percent compared with a normal year, Chen said at a meeting held in Harbin, capital of Heilongjiang Province.