POWERCHINA Ltd(SH:601669) Di Yi Cai Jing·2025-11-30 06:58Core Viewpoint - China Power Construction Group (China Power) has acknowledged serious quality issues in the construction of the Yong'an Pumped Storage Power Station and has established an investigation team to address these concerns and ensure compliance with regulations [1][4]. Group 1: Quality Issues - Reports indicate that the construction of the lower reservoir at the Yong'an Pumped Storage Power Station has been criticized for significant cost-cutting measures [4]. - The project, undertaken by subsidiaries of China Power, has revealed severe quality defects in the hundreds of anchor piles used for reinforcing the dam shoulder, with actual lengths significantly shorter than the design specifications [5][8]. - Many anchor piles were not constructed according to the required standards, with some being less than one-third of the specified length, and inadequate cement grouting was performed [5][8]. Group 2: Construction Practices - Experts have highlighted that the stability of the dam is critically dependent on the integrity of the anchor piles, which are essential for reinforcing the dam's slope [7]. - The design specifications required a complete structure for the anchor piles, but many were only connected using simple "spot welding," failing to meet the necessary structural integrity [7][8]. - On-site workers reported that the actual lengths of some anchor piles were as short as 2 to 5 meters, with significant discrepancies in the lengths of the reinforcing steel bars [8][9]. Group 3: Oversight and Accountability - Concerns have been raised regarding the oversight of the project, as the supervising entity is a subsidiary of the same parent company responsible for the design and construction, leading to questions about accountability [9]. - Reports of inappropriate conduct among monitoring personnel, including accepting entertainment from the construction team, have surfaced, raising further doubts about the integrity of the oversight process [11]. - The Yong'an Pumped Storage Power Station project has a total investment of 7.5 billion yuan, with expected annual power generation of 12.6 billion kilowatt-hours, contributing to significant carbon reduction and economic benefits [11].