China Tuoketuo Thermal Power Project

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The Inner Mongolia (Tuoketuo) Thermal Power Project is intended to: (1) increase electricity supply and electricity trade in North China by creating an independent power company to develop a mine-mouth power plant; (2) improve the efficiency of energy supply and use in the region by introducing modern technologies and implementing effective operations and maintenance practices and procedures in power generation, and reducing losses in Beijing's transmission and distribution systems; (3) advance the power sector reform process; (4) diversify financing sources, improve the access of power entities to international financial markets, and encourage private-sector investment in existing and new power sector enterprises; and (5) promote economic development and also improve soil conservation and desertification control in Tuoketuo county. The first and largest of the two components, the Tuoketuo thermal power plant and associated technical assistance, includes construction of the first two coal-fired subcritical thermal units in Inner Mongolia, the power station's first phase; technical assistance to the Tuoketuo electric power company for accounting and management systems; and a desertification control and dryland management program to improve environmental conditions. The second component includes construction of two indoor substations at Xibianmen and Xizhimen, the addition of a third transformer in an underground substation currently under construction, and technical assistance to the North China Power Group Company for implementing accounting and financial management systems.