China - Beilungang Thermal Power Project

Docamnt of The World Bank FOR OFFICIAL USE ONLY oA C-Cl Report No. P-4314-CHA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO $225.0 MILLION TO THE PEOPLE'S REPUBLIC OF CHINA FOR A BEILUNGANG THERMAL POWER PROJECT May 6, 1986 This document has a rcstricted distribution and may be used by recipienLs only in the performance of their official duties. Its contents may not otherwise be disciosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Name - Renminbi (RMB) Currency Unit - Yuan (Y) = 100 Fen 1985 April 1986 $1.00 = Y2.96 Y3.20 Y1.00 = $0.34 $0.31 (Project cost estimates are based on the exchange rate of Y2.80 per $1.00 which prevailed at the time of appraisal.) FISCAL YEAR January 1 to December 31 WEIGHTS AND MEASURES GWh = Gigawatt hour (1,000,000 kilowatt hours) km = Kilometer (= 0.62 miles) kV Kilovolt (1,000 volts) kVA Kilovolt-ampere (1,000 volt-amperes) kW = Kilowatt (1,000 watts) kWh Kilowatt hour (= 860.42 kcals) MVA = Megavolt-ampere (1,000 kilovolt-amperes) MW = Megawatt (1,000 kilowatts) TCF = Trillion cubic feet TPD Ton per day TWh Terawatt hour (1,000,000,000 kilowatt hours) PRINCIPAL ABBREVIATIONS AND ACRONYMS ECEPA - East China Electric Power Administration ECEPDI - East China Electric Power Design Institute ECPS - East China Power System IAEA - International Atomic Energy Agency MOF - Ministry of Finance MWREP - Ministry of Water Resources and Electric Power PCBC - People's Construction Bank of China SAA - State Audit Administration SEC - State Economic Commission SPC - State Planning Commission WREPERI - Water Resources and Electric Power Economic Research Institute ZPEPB - Zhejiang Provincial Electric Power Bureau  FOR OFFICIAL USE ONLY CHINA BEILUNGANG THERMAL POWER PROJECT Loan and Project Summary Borrower: The People's Republic of China Beneficiary: Zhejiang Provincial Electric Power Bureau (ZPEPB) Amount: $225.0 million Terms: 20 years, including five years of grace, at standard variable interest rate Onlending Terms: The proceeds of the loan would be onlent from the Government to ZPEPB under a subsidiary loan agreement with a 20-year term, including five years of grace and at an interest rate of 8.5X p.a. The foreign exchange risk (between the dollar and RMB) and commitment fee on the subsidiary loan would be borne by ZPEPB. Project Description: The project aim is to support industrial growth in East China by establishing a base-load thermal power plant along the coast of Zhejiang province using coal from Shanxi. The project would provide for construction of a coal-fired thermal power plant including coal unloading facilities at Beilungang with two generating units of 600 MW each, two single-circuits of 500 kV transmission lines and associated substations, a training program, and a tariff study. The station would be a state-of-the- art plant that would set standards for similar facilities to be built in China in the future. The project would introduce modern techniques in dynamic least-cost development programming and initiate dialogue on the modernization of utility management and financial planning, which are important sectoral issues. Cofinancing through commercial banks or export credits is being considered for the financing of the second unit of major equipment items. The project faces no special risks. This document has a restricted distribution and may be used by recipients only in the perfonmance of their offtcial duties Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Costs: Local Foreign Total - -~ ($ million) - Site development 21.9 - 21.9 Buildings and civil works .87.5 34.0 121.5 Boiler plant facilities 25.5 98.0 123.5 Turbine generator facilities 17.9 118.0 135.9 Balance of plant equipment 39.4 70.9 110.3 Transmission lines and substations 78.9 38.2 117.1 Construction and office equipment 11.1 5.0 16.1 Engineering and consulting services 2.5 4.0 6.5 Supervision and administration 15.7 - 15.7 Training 1.6 3.3 4.9 Tariff study 0.5 0.2 0.7 Base Cost: 302.5 371.6 674.1 Physical contingencies 33.7 18.4 52.1 Price contingencies 96.5 104.3 200.8 Total Project Cost: 432.7 494.3 927.0 Interest during construction 36.1 81.8 117.9 Total Financing Required: 468.8 576.1 1,044.9 Note: The project is exempted from import duties and taxes. Financing Plan: Local Foreign Total =$ million) - - IBRD loan - 225.0 225.0 Commercial bank loans and/ or export credits - 156.0 156.0 Local bank loans 468.8 195.1 663.9 Total 468.8 576.1 1,044.9 Estimated Disbursements: Bank FY 1986 1987 1988 1989 1990 1991 1992