China to Invest 170bn US Dollars in Grid Construction
in Next Two Years
Nov 16, 2008 - BBC Monitoring Asia
The State Grid Corporation of China
(SGCC), the country's biggest power supplier, plans
to more than double its investment for the next
two years to a total of 1.16 trillion yuan (169.9
billion US dollars) for gird construction nationwide.
"We decided to add about 500 billion
yuan investment to the original 550 billion yuan
scheduled for 2009 and 2010 in a bid to help stimulate
domestic demand," said a statement on the corporation's
The planned investment is yet to be
approved by the State Council, or China's Cabinet.
SGCC general manager assistant Lu
Jian said the company had already arranged 12 billion
yuan in the fourth quarter for the development of
urban and rural power supply in the country's central
and western regions.
"We got 2.73 billion yuan from the
central government. The rest was from bank loans
and company funds," he said.
The State Council announced on Thursday
a 100-billion-yuan package to accelerate national
economic development in the fourth quarter. SGCC
was granted 68.2 per cent of the 4 billion yuan
that went to support grid building.
Experts said power construction could
directly benefit industries such as metallurgy,
building materials, electricity and machinery manufacturing,
as it would promote investment, consumption and
Industry statistics show that the
construction of every 100 kilometres of power lines
of a 500-kilovolt grid project consumed 5,000 tons
of steel, 2,000 tons of aluminium and 7,000 cubic
meters of cement.
In 1998, the government invested more
than 300 billion yuan in grid building projects
to stimulate the domestic economy and fend off the
financial crisis in the southeast Asia, according
to the SGCC announcement.
Originally published by Xinhua news
agency, Beijing, in English 0748 16 Nov 08.
(c) 2008 BBC Monitoring Asia Pacific.
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