Power Construction Corporation of China – Powerchina

Powerchina is a large state-owned enterprise and is the owner of the more well-known Sinohydro as well as Hydrochina Corporation, China Renewable Energy Engineering Institute and numerous electric power design institutes and power construction companies. Powerchina’s areas of interest include hydropower, wind power, thermal power, expressway concessions and water treatment plants.

 One of the design institutes owned by Powerchina is the Hubei Electric Power Survey & Design Institute, which is one of the shortlisted bidders for the Pljevlja II lignite plant in Montenegro. Sinohydro was also interested in the controversial Moraca dam in Montenegro but dropped out in December 2010, before the tender deadline, however it is involved in contracting for the Ulog hydropower plant in the Republika Srpska entity of Bosnia and Herzegovina.

For more detailed information about Sinohydro see International Rivers’ New Great Walls guide.

POLICIES

In 2013, the Chinese Ministry of Commerce and the Ministry of Environmental Protection issued the Guidelines for Environmental Protection in Foreign Investment and Cooperation. These Guidelines are not legally binding but can be quoted as a policy that Powerchina should act in line with. In addition, while doing business in the EU or potential EU countries, it can be argued that companies should act in line with EU legislation.

Powerchina’s Sinohydro subsidiary can be considered a leader in developing company-level environmental policy. Its commitments include avoiding certain no-go zones such as national parks, World Heritage-listed sites, habitats of threatened species, and RAMSAR-listed wetlands. Such a commitment, if properly implemented, is stronger than that of institutions like the European Bank for Reconstruction and Development. For more information about Sinohydro’s environmental policy, see here. In Janary 2014 Sinohydro officially announced the creation of a Compliance Programme, with a dedicated department and Executive Vice President appointed to ensure its implementation.

CONTACTS

Powerchina does not have a public grievance mechanism and does not publish much information about its staff on its website. Therefore getting in touch is not easy: you need to send faxes and hard copies of letters.

For more information on the appropriate style to use when contacting Chinese banks and institutions, see here.

If you would like advice about contacting the company contact CEE Bankwatch Network by email: kingsofcoal@bankwatch.org

It is usually difficult to find out the relevant person to contact, so first look for some clues in the media coverage of the project or the particular office of the bank in question. For the Chinese headquarters, if you cannot find a specific person connected to the project or the region where the project is situated, write to the most senior people listed on the website.

You should not expect to receive an answer quickly, if at all. This can be discouraging, however do not underestimate the impact of receiving letters from local groups or affected people.

As Powerchina is a state-owned enterprise, it is directly responsible towards the State-Owned Assets Supervision and Administration Commission (SASAC). Projects with a total investment of over USD 30 million or with over USD 10 million in foreign exchange must also be approved by the National Development and Reform Commission (NDRC). Therefore if your communication with the company does not yield any results, it is possible to also contact the SASAC and the NDRC.

While you are in the process of contacting companies that are involved in investment projects of your interest, you may wish to communicate to the Chamber of Commerce or bilateral/regional trade associations in your respective country to learn about the companies’ activities and locate the relevant point of contact.

Mr Fan Jixiang, Chairman of the Board,
Powerchina
No.1, Sanlihe Road, Haidian District, Beijing, P.R.China
Postal Code: 100044

Tel: 86(10)88358779, 86(10)88358715 (English)
Fax: 86(10)88358775, 86(10)88334042
Email: overseas@powerchina.cn

CASE STUDIES

Pljevlja I
Pljevlja II, Montenegro
Read the case study »