China - Zhejiang Power Development

 ICRR 11806 Report Number : ICRR11806 ICR Review Operations Evaluation Department 1. Project Data: Date Posted : 08/24/2004 PROJ ID : P003642 Appraisal Actual Project Name : Zhejiang Power Devt Project Costs 1,789.3 1,615.1 US$M ) (US$M) Country : China Loan/ US$M ) 400.0 Loan /Credit (US$M) 389.38 Sector (s): Board: EMT - Power Cofinancing 150.0 142.92 (100%) US$M ) (US$M) L/C Number : L3846 Board Approval 95 FY ) (FY) Partners involved : Co-financing through an Closing Date 12/31/2002 12/31/2003 ECO Prepared by : Reviewed by : Group Manager : Group : Alvaro J. Roy Gilbert Alain A. Barbu OEDST Covarrubias 2. Project Objectives and Components a. Objectives The objectives of the project were to: (a) help meet rapidly expanding electricity demand in Zhejiang Province in a least cost manner; (b) promote power sector reform including commercialization and incorporation of the provincial power enterprise; (c) upgrade management capabilities and systems to enable the enterprise to operate efficiently in a commercial environment; (d) promote competition at the generation level through establishment of market-oriented commercial arrangements between power generation and marketing entities; (e) encourage alternative financing strategies for power development; (f) improve supply-side efficiency through reduction of transmission and distribution losses; and (g) reduce environmental impact of new generation. b. Components The components listed in the ICR are similar but not fully congruent with those listed in the SAR. (SAR paragraph 5.3 on page 33 and Project Cost Summary on page 40). The latter indicated 6 components (in US$million equivalent): (a) Belungang Phase II (905.2 at appraisal/996.1 actual); (b) 500-kV transmission (108.9 at appraisal/363.7 million actual); (c) Hangzhou distribution networks (72.9 at appraisal/47.17 actual); (d) Ningbo distribution networks (68.9 at appraisal/47.16 actual); (e) preparation and implementation (24.2 at appraisal/7.15 actual); and (f) Institutional Development (13.8 at appraisal/12.57 actual). Including US$595.4 million of physical and price contingencies, and Interest During Construction, the total appraised cost is US$1,789.3 million. The actual cost of US$1,615 million includes an “Others