Announcement of China to Boost Power Supply to Shanghai Area with World Bank Loan on June 25, 1987

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, O.C. 20433, U.S.A. BANK NEWS RELEASE NO. 87/ 94 Contact: P.B. Sison (202) 477-3653 CHINA TO BOOST POWER SUPPLY TO SHANGHAI AREA WITH WORLD BANK LOAN WASHINGTON, June 25 -- China will increase power supply to East China, one of the country's most important industrial areas, with a project supported by a $190 million World Bank loan. Industries in East China -- especially in Shanghai, the industrial center of the region -- are able to operate only four to five days a week because of power shortages, resulting in underutilization of facilities and manpower. In addition, the country has been unable to meet all the demand for power connections and extensions. The Bank-supported project will help alleviate the severe power shortage in the area, support the development of a power distribution network ( master plan for the city of Shanghai, promote efficient operations of the Shanghai Municipal Electric Power Bureau (SMEPB) through a staff training program, and encourage SMEPB reform through the adoption of modern financial performance targets. Specifically, the project includes expanding the generating capacity of the Wujing thermal power station by adding two 300-megawatt generating units, constructing .a coal-handling wharf, installing transmission lines and substations, and conducting a study that would result in a master plan for power distribution facilities over the next 15 years. Additional financing for the project will be provided by a municipal government loan of $11°3.2 million and local bank loans of $48.2 million. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.92 percent, linked to the cost of the Bank's borrowings. It also carries an annual conunitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are expressed in U.S. dollar equivalents.