Announcement of China to Expand Electric Power Generation in Coastal Province on June 16, 1988

FOR IMMEDIATE RELEASE 'NorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 88/86 Contact: Marjorie Messiter (202) 477-3642 CHINA TO EXPAND ELECTRIC POWER GENERATION IN COASTAL PROVINCE WASHINGTON, June 16, 1988--Electricity shortages are slowing the pace of industrial production in China's Zhejiang Province, limiting operations in almost all industries to only four or five days a week. The World Bank is helping meet the urgent need to expand generation and transmission capacity in Zhejiang Province with a $165 million loan for a thermal power extension project based in Beilungang, a sea port on the East China Sea, south of Shanghai. The $290 million project will expand power generation at the Beilungang thermal power plant by constructing a second 600- megawatt generating unit, and financing a second transmission line and extension of a substation. It also funds technical assistance for a study on reorgan1z1ng and improving management of the Zhejiang Provincial Electric Power Bureau .. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are in U.S. dollar equivalents.