China will invest 10 million yuan (1.2 million US dollars) in a project to look for underground water and terrestrial heat resources in the Ningxia Hui Autonomous Region, northwest China.

A research group, made up by geologists from the Chinese Academy of Geological Sciences, will investigate underground water and terrestrial heat resources in the drought-ridden region.

Scientists will also focus on the control of salinization and desertification for improving the ecological system there.

Experts say the major problem restricting Ningxia's development is shortage of water. The annual amount of precipitation in the region is less than 400 millimeter. (Xinhua)