The Shannan Development and Construction Zone at the convergence of the Yarlung Zangbo, Lhasa, and Nyancho rivers was among the key State-invested projects in the "Eighth Five- Year" Plan (1990-1995) and the Ten -Year Program. The zone includes Gonggar, Chanang, Nedong, Sangri and Qoingyai counties, stretching some 206 kilometers from east to west and 119 kilometers from north to south. The zone covers 1.03 million hectares, accounting for 13.4 percent of the prefecture's total. The general plan involves some 120 projects in 11 categories including land use, water conservation, cultivation, animal husbandry, forestry, energy resources, industry, transportation, the comprehensive development of agriculture, a pilot zone for agricultural experiment and the training of agricultural machinery personnel. Investment is expected to total 490.25 million yuan.

Some 55 preliminary projects were undertaken. An additional 32 projects have been initiated and 21 of these have been completed with total investment of 111.13 million yuan. Among the completed projects are two reservoirs, two trunk canals, one vegetable cultivation base, one seed development base, one feed processing plant, two water diversion projects, four agro-technical stations, one veterinary station, one agricultural comprehensive development zone and the Zetang Bridge. Some projects are starting from the ground up, while others are expanding on existing conditions. About 7,400 hectares of trees and 667 hectares of grass have been planted. Over 3,300 hectares of low-yield land have been transformed. Construction of these projects will have far-reaching significance to the sustained economic and social development in Shannan.