Belt and Road Initiative is fertile ground for CHEC's sustained growth
Beijing-headquartered China Huadian Engineering Co Ltd has taken the lead in China's Belt andRoad Initiative by successfully developing overseas markets, thanks to its advanced engineeringtechnologies and experience in managing major infrastructure construction, as well as investmentability, management of operation.
Two of its coal power station projects on Indonesia's Batam and Bali islands have won industry-wide praise, and are seen as role models for future Belt and Road infrastructure investments.
Engineers at China Huadian Engineering Co Ltd examine a machine. The CHEC has alwaysconsidered how to use modern technological ideas in its management and operations. Photosprovided to China Daily
For the projects, two units, each with an installed capacity of 65 megawatts, were built in Batam,and three units, each with an installed capacity of 142 mW, were built in Bali.
Another leading project is a power plant with two units of 660mW in installed capacity in Vietnam,construction of which will start soon.
Focusing on research and development, the company is on the road to building more excellentprojects at home and abroad.
CHEC is an affiliated enterprise of China Huadian Corporation, one of the nation's largest powergeneration enterprises.
Under China Huadian's overall development strategy, CHEC has become a large State-ownedenterprise with competitive advantages in developing its core business in engineeringtechnology industry, high-tech products research and development and manufacturing,engineering design and energy performance contracting, and energy technology research andservices.
CHEC is engaged in various domains of prime contracting of project construction and servicesapplied in industries such as electric power, petrifaction, harbors, metallurgy, mining, civic worksand new energy engineering.
So far, the company's overseas branches have successfully completed five EngineeringProcurement Construction projects, or the EPC projects.
In Indonesia, the company built the Indorama coal-fired power plant with two 30-mW units, andthe Lafarg coal-fired power plant with two 16.5-mW units, as well as a project in Asahan with two90-mW hydropower units.
It has also completed two projects in Cambodia: a 338-mW hydropower station and a powerplant with two 60-mW coal-fired units. In addition, the construction of a coal-fired power plant withtwo units of 35mW is still underway.
Roadmap
Based on its successful experience in promoting EPC businesses, CHEC is consideringdeveloping a business model of "Investment plus Construction plus Operation".
CHEC's overseas branches have founded five permanent organizations in Southeast Asia, andCentral and Eastern Europe.
Two power plants that CHEC invested in have started operations, with a total installed capacityof 556 mW. Another project is planned to have an installed capacity of 1,320 mW.
So far, CHEC's overseas branches have formed core businessesfocusing on investment, project construction, operation andmanagement in industries such as thermal power, hydroelectricity andwind power stations, and built an integrated business model of"Investment plus Construction plus Operation".
CHEC's coal-fired power plant in Bali is the largest overseas projectinvested in by the company. It was also the second project CHECinvested in,after the Batam coal-fired power plant.
CHEC has always focused on the quality and safety of these projects.
The total installed capacity of the Bali coal-fired power project, which is the island's largest powerstation, is 426 mW.
Construction work started in middle 2012. Three years later, on Aug 1, 2015, after an excellenttrial period, the power station started operations.
It is one of the best demonstration projects built by Chinese enterprises.
The Bali power plant hired CHD Power Plant Operation Co, which accumulated extensiveexperience during the Batam project, to do daily maintenance work.
After going into operation, the Bali power plant highlighted production safety, equipmentmanagement and its energy-consumption index.
The availability ratio of the plant reached 83 percent in the first contract year, which was onepercentage point higher than the agreed figure.
This achievement was highly appreciated by the local grid company as it helps the island to closepower plants that use oil or emit too much pollution.
As an enterprise focusing on innovation and R&D, CHEC has always considered how to usemodern technological ideas in its management and operations. CHEC insists on a sustainabledevelopment road with local people.
The company sent an excellent management team to the Bali project and tried to merge into localsociety and understand local culture. Advanced planning and an optimized management modelhave become guarantee that the project was carried out smoothly and in an environmentallyfriendly way.
The Bali power plant showed respect for religions of local people, and built Masjids and templesfor Muslim and Hinduism employees. On important religion festivals, including Eid al Fitr and Idal-Adjha, the management of the power plant granted holiday bonus and articles for localemployees and villagers.
The Bali plant has maintained a close relationship with local government departments,contractors, consultant companies, Chinese organizations and the embassy.
In addition, it has paid great attention to supporting local education and infrastructureconstruction. Since 2013, the plant has helped build three schools and five mosques. About1,000 students and more than 5,000 local people have benefited from these acts.
The company expects the landscape project to become environmentally friendly and achieve topquality in operation, management and technology.
Environmental protection has been considered closely by the Bali power plant. Building andoperating a coal-fired power plant on the island, which is also a world famous tourist spot, makesheavy requirements on the environment.
The enclosed circular coal yard was built to reduce the dust of coal during storage and usage,which is the first one in Indonesia.
The plant's all indicators meet the requirements of the local environment.
In a bid to make control of the impact of the plants on the local environment, CHEC actedaccording to local conditions and took many measures to reduce emissions.
Construction on the two units of the 65mW Batam coal-fired power plant started on March 1, 2011, and the plant started commercial operations in 2012, setting a record in Indonesia for itsconstruction speed.
Batam Island is one of Indonesia's key industrial bases, but poor electricity power infrastructurehad prevented rapid development of the local economy.
The operation of the Batam coal-fired power plant has greatly improved the local power supply.
It now generates about one-third of the electrical power on the island. With an improved powersupply, more enterprises and businesses have become confident about investing in the island.
CHEC's keys to success lie in its scientific development and mature technologies, project-management experience and a strong team of professionals and international manpower.
Benefiting from the country's Belt and Road Initiative, the company is expected to make greaterachievements in overseas plant investment and EPC constructions.
renjie@chinadaily.com.cn
