POWERCHINA Ltd(SH:601669) Jing Ji Guan Cha Wang·2025-11-30 05:17Core Viewpoint - China Power Construction Group (China Power) is facing serious allegations regarding construction quality issues at the Fujian Yong'an Pumped Storage Power Station, which is a key project under the national "14th Five-Year Plan" for pumped storage. The company has established a special investigation team to address these concerns and ensure compliance with legal and regulatory standards [2][5]. Group 1: Project Overview - The total investment for the Fujian Yong'an Pumped Storage Power Station is 7.5 billion yuan, making it the first approved large-scale energy storage project in Fujian Province under the "14th Five-Year Plan" [3]. - Upon completion, the project is expected to generate an average annual electricity output of 12.6 billion kilowatt-hours, saving 660,000 tons of standard coal and reducing carbon dioxide emissions by 1.65 million tons, with a carbon reduction benefit of 153 million yuan and tax revenue of 180 million yuan [3]. Group 2: Quality Issues - Investigations revealed severe quality defects in the hundreds of anchor piles used to reinforce the dam shoulder, with some piles measuring less than one-third of the required 12 meters, and only one or two out of three steel bars meeting the standard length [3][4]. - Reports indicate that only about 30% of the anchor piles meet design requirements, with many being classified as "substandard" due to inadequate cement and sand filling, posing a direct threat to the dam's overall safety [4]. Group 3: Supervision and Corruption Concerns - The incident has highlighted significant supervisory failures, with reports of monitoring personnel from Zhejiang Huadong Engineering Consulting Co., Ltd. accepting entertainment from the construction party, raising questions about the integrity of the oversight process [5]. - The monitoring unit's failure to fulfill its supervisory role and its potential collusion with the construction party has sparked public concern regarding corruption and the effectiveness of the monitoring system [5][6]. Group 4: Investigation and Future Implications - An investigation team led by senior management has been established to conduct a thorough review of project management, financial processes, procurement, and safety production [6]. - The incident not only impacts China Power's brand image and industry reputation but also serves as a warning for the construction industry to prioritize quality and safety over speed and economic benefits, addressing issues of corruption and regulatory compliance [6].