Hubei Xuan En has no substantive progress in the introduction of 1 billion hydropower projects for 3 years

Enshi On January 10th, 3 years ago, Xuan En County, Hubei Province, introduced China Huadian Group to invest in the development of the Baishui River hydropower project. Up to now, no substantial progress has been made in the construction of this power station.

Baishui River is located in Xuanen County of Enshi Prefecture, Hubei Province. Its main stream is 89.9 kilometers in length, and the development prospect of hydropower resources is good. According to previous media reports, the Baishuihe Hydropower Development Project invested by China Huadian Corporation with a total investment of 1 billion yuan was carried out according to a seven-level development plan. The project includes the construction of two to five power stations and tributaries of two power stations in the main stream, with a total installed capacity of 125 megawatts and an annual designed power generation capacity of 360 million kWh.

On December 28, 2009, China Huadian Corporation Hubei Huadian Xuan En Hydropower Co., Ltd. was established in Enshi Prefecture. On the same day, the company and Huadian Engineering Company signed the Baishui River Basin hydropower project general contract.

It is said that if the development of the project is completed, Xuanen County will contribute no less than 50 million yuan in fiscal revenue each year. According to Gong Guangping, a member of the Xuan'en County National People's Congress Party Committee (the former deputy director of the National People's Congress) who is the project's coordinator, the construction progress of Guanyinping Power Station project has been slow over the past three years. The funds used for project construction are about RMB 30 million, and the actual expenditures of investors are nearly RMB 80 million. , and the main project did not start, and its auxiliary project has not been completed.

As of November 2012, Hubei Huadian Xuan En Hydropower Co., Ltd. had used a letter of 45 million yuan from a local bank. According to the bank’s sources, on November 30, 2012, the bank received a letter from the company about the postponement of Guanyinping Hydropower Station. Previously on June 29, 2012 and July 30, 2012, the company submitted several million yuan to the bank twice. The reason for the withdrawal was "Guanyinping Hydropower Project progress."

Why is such a major project delayed? It is understood that one of the important reasons is that Huadian has re-analyzed the construction cost of Guanyinping Hydropower Station and the project estimate has exceeded the initial design budget.

However, if the entire Xi’an Baishui River Basin hydropower project is postponed or even suspended, it will lead to a series of problems. Since the project involves close to 2,000 immigrants and 10,000 farmers affected by the closure of Baishui River Basin, Zhou Guomao, deputy secretary of the Party Committee of Shadaogou Town in Xuan'en County, feels helpless: “I did not expect such a large investment project to suddenly stop. Building and leaving behind a lot of aftermath issues make us very embarrassed and very tricky.”

On January 6, 2013, the gate of “Hubei Huadian Xuan En Hydropower Co., Ltd.”, No. 1 Minzu Road, Zhushan Town, Xuanen County was closed. The reporter telephoned Ding Cunbo, the person in charge of the company. Ding said it is not in the area.

So far, Hubei Huadian Xuanen Hydropower Co., Ltd. has not responded to the reasons for the suspension or construction of the Guanyinping Hydropower Project in Xuanen County and the subsequent compensation and bank loan repayment.

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