China is proposing to utilise the hydro power potential of the Lancang river as its next power source. The river, which is estimated to have the capacity of generating more than 100B kWh annually, will have eight power stations built on it in the next 30 years.

The Dachao Mountain hydro power station, now under construction, will be installed with a capacity of 1350MW and is expected to be completed in 2003.

Preparations are also being made for another two stations, with anticipated target dates to commence construction by 2000.

Other developments in China include the formation of a joint Chinese/German venture, which was undertaken in June between China Merchants Holding and Preussag Noell. The partnership means that the advantages of both parties can be united — it is said that the local knowledge of China Merchants will complement Preussag-Noell’s technological knowledge and experience in the field of crane construction.

The new partnership will be called Preussag Noell-China Merchants Mechanical Engineering Group.