The following year an official agreement between the Chinese government brought the ICSHP directly under the auspices of UNIDO.

[3][4] Its establishment has been described as 'one of the major achievements of China's reform and a symbol of world SHP demand, which reflects the international status of China's SHP development'[5][6] The ICSHP was established 'to promote small hydropower development worldwide'.

The organisation provides training, advice, research and information exchange on small hydro power development and management.

[8] The mission of the ICSHP is also in keeping with UNIDO's focus on promoting South-South Co-operation, 'by encouraging more horizontal investment flows'.

According to Li Yong, Director-General of UNIDO, the report was "a world first compilation of global small hydropower data".