Announcement of China Daguangba Multipurppose Project on November 4, 1991

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. ANKIEWS RELEASE NO. 92/22 Contact: Pastor Sison ID NEWS RELEASE NO. 92/19 Tel: (202) 458-0344 CHINA: DAGUANGBA MULTIPURPOSE.PROJECT The following is information on a project approved by the World Bank's Board. DATE: November 4, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $30 million. International Development Association (IDA) credit: $37 million. The 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. The IDA credit is for 35 years, including 10 years of grace; it carries no interest but has an annual charge of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent (currently zero percent) on the undisbursed balance. TOTAL COST: $217.7 million OTHER FINANCING: Funds from the IDA Second Technical Cooperation Creditl, $300,000; Ministry of Water Resources, $12 million; State Energy Investment Corporation, $21 million; Hainan Provincial Government loans, $109.2 million; Hainan Provincial Government grants, $8 million; United Nations Development Programme, $100,000 IMPLEMENTING AGENCY: Hainan Electric Power Company (HEPCO) ESTIMATED COMPLETION DATE: 1996 PROJECT DESCRIPTION: The objective of the Daguangba Multipurpose Project is to further develop the energy and agriculture sectors to: (a) increase nonpolluting and cost-effective hydropower resources to provide necessary peaking power in a predominantly thermal system; (b) increase agricultural production to meet the needs of a growing population; (c) increase the incomes of poor farmers by intensifying agricultural production and increasing the productivity of cropland (through increased water supply and an optimized cropping pattern); (d) improve the environmental quality and public health of the region by implementing an -2- environmental management program; (e) promote prudent investment programming and strengthen local capabilities in development planning of both the power and agricultural sectors; (f) promote rational pricing of electricity and irrigation water; and (g) enhance the operational efficiency and financial management of HEPCO. The project consists of two main components, power and agriculture/resettlement. Under the power component, the project includes: (a) construction of a 56-meter high, 719-meter long gravity dam of roller-compacted concrete flanked by earth embankments about 5,100 meters long; (b) construction of an underground powerhouse equipped with four 60 Megawatt generation sets, a surge shaft, and 420-meter long twin tailrace tunnels; (c) erection of about 36 kilometers of double-circuit transmission line and construction of Changjiang substation; (d) installation of a computerized load dispatch system for the Hainan power grid; and (e) technical assistance and training in project design, power system planning, tariff studies, and utility and financial management. The agriculture/resettlement component includes: (a) construction of the High Main Canal (about 16 kilometers long), about 154-kilometer long branch/lateral canals, and on-farm works for irrigation of about 12,700 hectares in Dongfang County, of which about 1,400 hectares will be related to resettlement; (b) resettlement of about 23,800 people in Dongfang and Legong Counties and provision of housing, infrastructure, on-farm works, and land development for irrigation of about 2,300 hectares; (c) provision of agricultural support services; (d) provision of environmental management; and (e) technical assistance for the preparation of an agricultural development plan.