CN-ZHEJIANG POWER DEVT

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The objectives of the Zhejiang Power Development Project are to: 1) help meet rapidly expanding electricity demand in Zhejiang Province in a least-cost manner; 2) promote power sector reform including commercialization and corporatization of the provincial power enterprise; 3) upgrade management capabilities and systems to enable the enterprise to operate efficiently in a commercial environment; 4) promote competition at the generation level through establishment of market-oriented commercial arrangements between power generation and marketing entities; 5) encourage alternative financing strategies for power development; 6) improve supply side-efficiency through reduction of transmission and distribution losses; and 7) reduce environmental impacts of new generation. The project will include power sector reform, investment and institutional development components as follows: 1) a time-bound implementation plan for power sector reform, including commercialization and incorporation of the power company; 2) Beilungang Phase 2 consisting of the addition of three 600-MW coal-fired units at the Beilungang Power Station; 3) transmission network expansion and reinforcement by the addition of about 400 circuit-km of 500 kV transmission lines and 2,250 of 500 kV substations; 4) reinforcement of distribution networks in Hangzhou and Ningbo Municipalities; 5) engineering and construction management services for Beilungang Phase 2; 6) technical assistance in preparing the security package for the Wangjiangmen cogeneration plant, which will be developed by a foreign/local joint venture; and 7) technical assistance to assist in commercialization, establish a computerized financial managment information system (FMIS), improve transmission and distribution planning, upgrade environmental monitoring, and support ZPEPC training program.