Announcement of China Yanshi Thermal Power Project on January 16, 1992

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 92/40 Contact: Pastor B. Sison Tel: (202) 458-0344 CHINA: YANSHI THERMAL POWER PROJECT The following is additional information about a project announce in today's World Bank News. DATE: January 16, 1992 WORLD BANK GROUP SUPPORT: World Bank loan: $180 million. The World Bank loan if for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $459.6 million OTHER FINANCING: Provincial Government of Yanshi, $131.7 million; State Energy Investment Corporation (SEIC), $147.9 million IMPLEMENTING AGENCY: Henan Provincial Electric Power Bureau (HPEPB) ESTIMATED COMPLETION DATE: 1998 PROJECT DESCRIPTION: The objectives of the Yanshi Thermal Power Project are to: (a) alleviate the acute power shortage in central China; (b) support the national policies of developing thermal power plants at mine-mouths and near coal mines; (c) introduce up-to-date methods for investment planning, tariff restructuring, and system operation; (d) introduce techniques for modern construction and management of thermal power plants; and (e) upgrade Henan Provincial Electric Power Bureau's thermal power stations, including the implementation of an environmental monitoring program. The project includes: (a) extension of the existing Yanshi thermal power plant, including: addition of two coal-fired generating units of 300-megawatt each, construction of the main building piling and foundation, building structures, cooling water towers, and a chimney; and provision of electrical and mechanical equipment, such as boilers, turbine-generators, ash handling facilities, and other auxiliaries; (b) construction of five 220-kilovolt transmission lines about 350 kilometers in length, with associate substations; (c) implementation of a monitoring program for environmental protection; (d) training programs to upgrade the technical, financial, and managerial skills of HPEPB staff, including a management information system, equipping and upgrading HPEPB's technical schools, and training for the operations and maintenance staff of large thermal power plants with 300-megawatt units; (e) a tariff study and an action plan for tariff structure improvements; and (f) provision of consulting services (engineering, design, and bid preparation and review).