The country's largest state-owned investment holding company, the State Development and Investment Corporation, has promised to put further emphasize on the need for saving resources and protecting the environment while continuing to guide investors towards basic, resource, transport and high-tech industries.

 

"The State Development and Investment Corporation always places great importance on environmental protection and the saving of resources,” said Wang Huisheng, president of the corporation, in Beijing yesterday.

 

It was the corporation's top priority to assess the impact of its projects on the environment, promote the development of ventures which met the requirements of a circular economy and develop new, environmentally-friendly energy resources.

 

In the 11th Five-Year Guidelines (2006-10) the corporation would launch nearly 30 new projects and the saving of resources and environmental protection would be given top priority while the schemes were being developed, Wang explained. .

 

In the years ahead the corporation would build or renovate a total of 12 coal washing plants to increase annual washing capacity to 40 million tons and recycle more than 90 percent of the waste water from coal production. The recycled water would be used as coolant for electricity generation and irrigation.

 

The corporation was also investing in the construction of 10 coal gangue-fuelled power plants -- gangue is traditionally a waste product of coal production -- as fuel for electricity generators.

 

The corporation aim to increase their total assets to 220 billion yuan (US$27.45 billion) by 2012 from last year's figure of 93.9 billion yuan (US$11.71 billion). They also hope to boost profits to 10 billion yuan (US$1.24 billion) by 2012 from last year's 3.7 billion yuan (US$461.69 million).

 

Wang said the corporation had a well established reputation for being committed to environmental protection and corporate social responsibility.

 

For example the Ertan Hydropower Company, part of the corporation, had contributed 30 million yuan (US$3.75 million) to a fund they jointly established with the National Natural Science Foundation of China to assess the environmental impact of the corporation's Yalong River hydropower development projects. The purpose of the fund is to minimize project impact on the environment and ecological systems along the river.

 

Tianjin Beijiang Power Plant is another example of the corporation's commitment to environmental protection and the saving of resources. The plant is one of the country's first projects, aimed at a circular economy in the power industry, to clearly demonstrate what can be achieved with sound planning and engineering. The plant will generate electricity, desalinate and produce salt from sea water and recycle industrial waste.

 

Established in 1995 the corporation has adopted a business model of investment through shareholdings. It aims to increase the value of the shares by good management and selling or transferring them to maximize returns. Astute investment management would result in an increase to the value of state-owned assets.

 

This business model enables the corporation to invest its funds in emerging markets and guides foreign and private investors to the industries which require funding.

 

At the same time it enables the corporation to play an active role in the strategic distribution and readjustment of the country's economic development.

 

(China Daily April 20, 2006)