Power industry co-op in full swing

CHINA - A new power supply project between Russia and Heilongjiang will help both nations strengthen economic and trade ties.

Under the China-Russia Direct-Current Power Grid Project, which will soon begin, electricity will be transmitted from Russia's Far East to Northeast China's Heilongjiang Province.

It is estimated that about 3.6-4.3 billion kilowatt-hours of electricity will be transmitted from Russia to Heilongjiang annually by 2008.

After the project's completion, the power supply from Russia to Northeast China will reach 38 billion kilowatt-hours a year by 2015.

"Russia, as a big exporter of energy, and China, as a big energy user, have many co-operation opportunities in the energy sector," said an official from the Heilongjiang provincial government.

Energy from Russia, which has the world's fourth largest power network, will help ease the pressure on the power grid in Heilongjiang, the official added.

Russia began transmitting electricity to Heilongjiang in early 1992. It has built two power-transmitting lines to China since then.

By the end of last year, Russia had transmitted a total of 1.65 billion kilowatt-hours of electricity to Heilongjiang, worth US$35.4 million.

Besides power co-operation, Heilongjiang has also seen a rapid development of trade and economic co-operation with Russia in the past few years.

In 2005, Heilongjiang's import and export volume with Russia hit US$8.91 billion, an increase of 48.5 per cent over the previous year.

Neighbouring eastern Russia, Heilongjiang signed a total of 64 engineering and labour service contracts with the nation last year, with a contractual volume reaching US$160 million, up 28 per cent over the previous year.

In addition, it signed another 44 engineering and labour contracts with Russia in the first six months of this year, with a contractual volume hitting US$150 million, an increase of 107 per cent over the same period last year.

A total of 26 Heilongjiang-funded enterprises have also been set up in Russia in the first half of this year, with registered capital of US$65.7 million.

Agricultural co-operation between Heilongjiang and Russia has also been strengthened over the last few years.

In 2005, Heilongjiang's agricultural exports to Russia hit US$420 million, up 57.4 per cent over the previous year.