Announcement of World Bank Supports Two Hundred Eighty-Three Million Dollar Power Expansion Project in China on February 21, 1986

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. c a c BANK NEWS RELEASE NO. 85/27 Contact: P.B. Sison February 21, 1985 (202) 477-3573 WORLD BANK SUPPORTS $283 MILLION POWER EXPANSION PROJECT IN CHINA The World Bank is providing a loan of $117 million to support a project to expand the electric power system in eastern China, one of the country's most important industrial areas. The project will have a total cost of nearly $283 million. A 500-kilovolt transmission line of about 683 kilometers from Xuzhou to Shanghai on the east coast will be constructed. This will include a three-kilometer crossing over the Yangtze River. Power substations will be installed at Xuzhou, Jiangdu, Sunan, Huangdu, and Nanqiao. Three other substations under the Jiangsu Provincial Electric Power Bureau (JPEPB) will be provided with equipment. These substations and the dispatching centers at Shanghai and Nanjing will receive telecommunication and telecontrol equipment. Consultants will assist the East China Electric Power Design Institute and JPEPB to design, procure, and construct the transmission lines and susbstations. A new staff training center will be established and equipment will be provided to two existing electrical training schools for the operation and maintenance of 500-kilovolt transmission lines and substations. The eastern China region accounts for about 25 percent of total national production. But the shortage of electricity has been a major barrier to economic development in the area. It is estimated that as much as 20 percent of potential industrial production is being lost because of the inadequate power supply. The project is expected to be completed by mid-1988. The Government of China is contributing $4.4 million and Chinese banks are providing $151.4 million towards the cost of the project. The Government of Italy will provide a credit of $10 million. The World Bank's assistance for electric power projects in China aims at promoting the use of modern technology, training of Chinese staff, and strengthening of institutions, particularly their capabilities for system planning and financial management. In early 1984 The World Bank approved a loan of $145.4 million to support the construction of a hydropower facility at Lubuge in southwestern China. The Bank also helped to introduce international competitive bidding for civil works and modern construction techniques. The new World Bank loan is for 20 years including five years' grace, with a variable interest rate, currently 9.29 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.