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Foreign Investment Welcomed to Build Hydropower Station in West China
Zhang Baoguo, vice-minister of the State Development Planning Commission, said recently that the indicative project involved in the massive western region development-the "west-to-east power transmission" project, will offer a vast market for foreign capital and China welcomes foreign businessmen to participate in the construction of the said power transmission project, particularly to finance construction of hydropower stations.
He disclosed that investment for the entire project will exceed 100 billion yuan.
It's reported that during the "10th Fiver-Year Plan" period (2001-05), China will mainly speed up the construction of the power source and power transmission wires of the south line of this project, including the construction of several long-distance, cross-province power transmission and transformation lines running from Guizhou to Guangdong, Yunnan to Guangdong and Three Gorges to Guangdong, which will involve a total investment of 30 billion yuan. When construction of power source is added, the investment will be greater. For example, investment in the Xiaowan Hydropower Station of Yunnan and the Longtan Hydropower Station of Guangxi, both with an installed capacity of over 4 million kilowatts, will reach 50 billion yuan.
He stressed that China is speeding up the power system reform, centered on "the separation of power plants from power grids, and access to power grids by offering competitive price". After the power plant is separated from the power grid, an independent power plant can get access to the power grid by offering competitive price, this will help break the monopoly of the power department, thus clearing the way for the entry of foreign businessmen into the Chinese power market.
He said that the power transmission project can enjoy the earlier published relevant preferential policies for the massive development of China's western region.
In addition,, concerned Chinese department is studying and making preferential taxation policies on hydropower project construction, so as to enhance the competitiveness of hydropower market in west China.
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