China - Second Power Project

Document Of The World B FOR OMFCIAL USE ONLY ,/g 2 y93:- C//4 Rewt N. P-3931-CHA REPORT AND RECOMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANRK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$117.0 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR THE SECOND POWER PROJECT . January 29, 1985 docnomn h a restrictht distitio ad may be sed by recipients only in the performance of tbeir offial dties Its contentr my not othrwise be disdosed without Word ank authorinon.  CURRENCY EQUrVALENTS Currency Unit = Yuan (Y) Calendar 1983 November 1984 S1.00 = Y 1.98 Y 2.60 FISCAL YEAR January I - December 31 Weights and Measures km - Kilometer (= 0.62 miles) kWh - Kilowatt hour (= 86o.42 kcals) Gwh - Gigawatt zour (1,000,000 kilowatt; hours) kW - Kilowatt (1,000 watts) kV - Kilovolt (1,000 volts) kVA - Kilovolt-ampere (1,000 volt-amperes) MVA - Megavolt-ampere (1,000 kilovolt-amperes) MN - Megawatt (1,000 kilowatts) ABBREYIATIONS USED ECEPA - East China Electric Power Administration ECEPDI - East China Electric Power Design Institute ECPS - East China Power System GOC - Government of China IAEA - International Atomic Energy Agency JPEPB - Jiangsu Provincial Electric Power Bureau Mocd - Ministry of Coal Industry MOF - Ministry of Finance MOP} - Ministry of Petroleum Industry MWREP - Ministry of Water Resources and Electric Power SAA - State Aucit Administration SEC - State Economic Commission SEPSB - Shanghai Electric Power Supply Bureau SPC - State Planning Commission  FOR OFFICuI USE ONLY CHINA SECOND POWER PROJECT Loan and Project Summary Borrower: The People's Republic of China Beneficiary: Jiangsu Provincial Electric Power Bureau (JPEPB) Amount: $117.0 million. Terms: 20 years, including 5 years of grace, at standard variable interest rate. Relending: The proceeds of the loan will be onlent from the Government to JPEPB under a subsidiary loan agreement, with a 20-year term including five years of grace and an interest rate of 8.5% p.a. JPEPB will bear the foreign exchange risk (between the dollar and the Borrower's currency). Prolect Description: The project comprises the construction of a 500 kV transmission line from Xuzhou to Shanghai, installa- tion of five substations and provision of associated equipment, consultant services, and training. The project seeks to support industrial growth in East China by facilitating bulk power transfer between optimal generating sites and demand cenzers. It provides for the transfer of technology in extra high voltage (EHV) line and substation design, construction, operation and maintenance, overall system planning, investment programming and financial planning and control. The project faces no special risks. Cofinancing has been secured from the Italian Government ($10 million). This document has a restricted distribution and may be used by recipients only in the performu'e of their ofricial duties Its contents may n't otherwise be disclosed without World Bank authorization.  - ii - Estimated Costs: Local Foreign Total -- ($ million) -- - 500 kV transmission line 64.6 32.1 96.7 500 kV substations 42.0 60.4 102.4 Tele-control & tele-coamunication equipment 0.9 6.4 7.3 Installation, commissioning and testing equipment 1.5 5.6 7.1 Engineering & consultant services 5.3 1.0 6.3 Training 0.3 2.6 2.9 Base Cost 114.6 108.1 222.7 Physical contingencies 11.8 5.3 17.1 Price contingencies 5.9 19.6 25.5 Total Project Cost 132.3 133.0 265.3 Interest during construction 7.9 9.6 17.5 Total Financing Required 140.2 142.6 282.8 Note: Identifiable taxes and duties are about $9.2 million; the total project cost net of taxes and duties is $256.1 million. Financing Plan: Local Foreign Total _$ million) Source IBRD - 117.0 117.0 Bilateral credit - 10.0 10.0 Local banks - 140.2 11.2 151.4 Government - 4.4 4.4 Total 140.2 142.6 282.8 . Estimated Disbursements: Bank FY 1985 1986 1987 1988 1989