Announcement of China Zouxian Thermal Power Project on April 23, 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. 92/70 Contact: Pastor Sison Tel: (202) 458-0344 CHINA: ZOUXIAN THERMAL POWER PROJECT The following is additional information on a project announced in this week's issue of World Bank News. DATE: April 23, 1992 WORLD BANK GROUP SUPPORT: World Bank loan: $310 million. The World Bank loan is 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: $957.4 million OTHER FINANCING: State Energy Investment Corporation (SEIC), $265.7 million; Shandong Province, $380.8 million; Japanese Grant Facility, $900,000 IMPLEMENTING AGENCY: Shandong Provincial Electric Power Bureau (SPEPB) ESTIMATED COMPLETION DATE: 1999 PROJECT DESCRIPTION: The objectives of the Zouxian Thermal Power Project are to: (a) alleviate the acute power shortage in Shandong and meet the province's projected power demand by 1997; (b) support national policies for developing large mine-mouth thermal power generating units to make effective use of China's abundant coal resources; (c) transfer the modern technology in plant design and project management for 600-Megawatt thermal power units; (d) provide technical assistance to strengthen SPEPB's environmental planning for thermal power stations and to restructure power tariffs; and (e) upgrade SPEPB's capabilities in financial management and operation and maintenance of thermal power plants. The project consists of: (a) the expansion of the exist- ing Zouxian coal-fired thermal power plant, adding two generating units of 600 Megawatt each to reach an ultimate capacity of 2,400 Megawatt, including: site preparation, civil works for coal unloading, intake structure, cooling water towers, a chimney, foundations, plant buildings, and ancillary structures; and boiler island, turbine-generator island, instrumentation and control island, coal and ash handling facilities, electrical equipment for switchyard and plant use, and other necessary auxiliaries; (b) construction of associated 500-kilovolt and 220-kilovolt transmission lines and substations to feed power into the grid; (c) construction management and provision of consulting ser- vices for equipment procurement, coordination and interfacing of engineering and design of different power plant islands, and review of suppliers' draw- ings; (d) technical assistance for a study on air pollution control for coal- fired power plant development in the coastal areas of China; (e) preparation of a tariff study and implementation of a phased, time-bound action plan for improving the structure of power tariff in the Shandong power grid; (f) a training program; and (g) a monitoring program for environmental protection.