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China,People'sRep.of
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LOAN: PRC 28212-01
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Hebei Zhanghewan Pumped Storage Project
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Location
Jingxing County, Hebei Province
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Sector
Energy /Energy Sector Development
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Initial Listing
1 December 1994
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Most Recent Update
29 November 2006
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Executing Agency(ies)
Hebei Electric Power Company
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
| 23-27 Jul 2001 |
25 Feb-12 Mar 2002 |
TBD |
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Loan Approval Date
18 October 2002
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Estimated Completion Date
June 2007
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
144.00 |
0.00 |
144.00 |
| Cofinancing |
0.00 |
393.10 |
393.10 |
| Borrower |
21.30 |
187.20 |
208.50 |
| Beneficiaries |
0.00 |
29.30 |
29.30 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
165.30 |
609.60 |
774.90 |
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OCR |
ADF |
Total |
| Loan Amount |
144.00 |
0.00 |
144.00 |
- Description
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The Project involves the construction of a 1,000 megawatt (MW) pumped storage power plant, a 500 kilovolt (kV) transmission line for transfer of electricity from the power plant to the Hebei South Power Grid (HSPG), rehabiliation of rural electricity distribution network, closure of old and inefficient coal-fired power generation units, support for reforms in the provincial power sector, irrigation improvement and afforestation.
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- Thematic Classification
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- Rationale
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The Hebei power system is dominated by coal-fired plants with negligible contribution from other sources such as hydropower for peaking because Hebei lacks these natural resources. Small, old, and polluting coal-fired plants are used to meet the peak load. As a result, system operation is inefficient and costly, and suffers from frequent power interruptions. Consumers covered by the existing rural electrification network suffer from poor power supply because of its inadequate capacity. The Zhanghewan Pumped Storage Project will pump water up to an artificial reservoir on the Laoyemiao Mountain during the night when the system load is low (thus allowing coal-fired plants to operate more efficiently at continuous power for the whole day), and generate peaking power when needed with the same water during the day and evening.
- Objectives and Scope
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The main objective of the Project is to improve efficiency of energy generation and reduce emissions in meeting the peaking power requirements of the HSPG. Other objectives are to upgrade and expand the electricity supply in relatively poor rural areas, to expand irrigation system in Jingxing County, to close old, inefficient power plants, and to introduce competitive markets and use market forces to improve efficiency of power utilities. In addition, the policy dialogue aims to reduce rural tariffs to make electricity more affordable to the poor and to enable them to take advantage of the rural electrification. The Project consists mainly of (i) establishing a 1,000 MW pumped storage power plant and a 63 kilometer (km) of 500 kV transmission line connecting the power plant to the grid, (ii) improving rural electricity supply to 23 counties including 15 poverty counties, (iii) closing down 20 old, inefficient and polluting coal-fired power units with a total capacity of 505 MW, (iv) supporting institutional reforms and introduction of competitive power market in HSPG, (v) expanding irrigation capacity by 6,700 ha, and (vi) planting of 16,330 ha of trees in Jinxing County.
- Policy Dialogue
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Poverty reduction; tariff reform; sector restructuring and enterprise reforms; private sector participation; energy and efficiency.
- Environment Category:
A
- Environment Impact and Mitigation
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Reasonable measures have been, or are being incorporated in the Project Design to minimize impact of the Project to an acceptable level.
- Social Aspects and Remedies
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About 3,070 persons will be affected directly and indirectly; resettlement sites will be developed and affected people will be relocated to these sites; resettlement compensation will be provided to affected perons.
- Benefits and Beneficiaries
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Rural/agricultural, commercial and industrial consumers in southern Hebei Province.
- Public Consultation
- Arranged by Borrower and TA Consultants
- Date for Consultation : July 1995 to December 2001
- Groups Consulted : Affected people in reservoir area, resettlement area villages (host communities), Jinxing County Women's Federation
- Beneficiary Participation in Formulation
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- Beneficiary Participation in Implementation
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- Consulting Services
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International consultants will be engaged to assist Hebei Electric Power Company (HEP) in detailed design, preparation of bid documents, bid evaluation, implementation supervision, monitoring and evaluation of environmental mitigation measures, the resettlement program, and social and poverty impact, and the training of HEP/ZPSC staff. Advance recruitment action to expedite project implementation was approved on 28 May 2002.
- Procurement
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All procurement under the Project will be in accordance with ADB's Guidelines for Procurement. Procurement of materials and equipment with a contract value of more than $500,000 equivalent will be undertaken under international competitive bidding procedures, while procurement with a contract value of $500,000 equivalent or less will be done under international shopping procedures. Advance action for procurement was approved on 28 May 2002.
- Contacts
- Bank
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Bo Q. Lin
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Principal Economist (Energy)
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EAEN
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Tel. No.:
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E-mail:
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- Executing Agency
- Hebei Electric Power Company
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Contact Person
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Mr. Zhang Zhifeng, Deputy Director
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Tel. No.
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86 311 565 4246
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Fax. No.
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86 311 565 4247
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E-mail
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zwhpo@public.sj.he.cn
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Contact Person
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Tel. No.
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Fax. No.
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E-mail
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- Remarks
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Project has high Government priority as it will reduce frequent power supply interruptions and will help reduce air pollution in South Hebei. The Project has an EIRR exceeding 12 percent and it is in the least-cost generation development plan.
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