Audit Commission: Three Gorges International company exceeds the cost of 10.1 million yuan

2009 10th: "Jinsha Xiluodu Hydropower Project Audit results (first stage)" Sands Xiluodu Hydropower Project Audit results (first phase) (July 20, 2009 notice) according to the relevant provisions of the audit law of the People's Republic of China, In 2007 and 2008, the audit carried out a follow-up audit on the construction management and resettlement of the Jinsha Xiluodu Project (hereinafter referred to as the Three Gorges Corporation), which was invested by the Yangtze River Three Gorges Development Corporation (hereafter referred to as "Xiluodu project"), and the first phase audit was completed. The audit results are as follows: first, the basic situation of XILUODU Project Xiluodu Project is one of the 4 large hydropower stations developed by the Three Gorges Corporation in the downstream of Jinsha River, and it is also the first phase of the national implementation of the "West to East" project, and the design capacity is 12.6 million-kilowatt. 2002 The original state Planning Commission approved the project. November 2005 approved the design can be developed, can study the total investment of 67.478 billion yuan, of which the static total investment of 50.342 billion yuan, construction period loan interest of 17.136 billion yuan. The construction source is the enterprise own capital, the enterprise bond and the bank loan, the construction total period is 13 years. Xiluodu Project began construction in March 2003, completed River closure in November 2007. At present, the field inside and outside the traffic, construction camp, diversion and other projects have been basically completed, underground powerhouse, dam excavation construction.　　As of August 2008, the Three Gorges Corporation accumulated 15.868 billion yuan to raise capital, and the total investment was 15.295 billion yuan. According to the approval of the Development and Reform Committee, the construction of land requisition and resettlement plan for the feasibility study stage of Xiluodu project, and the estimate of compensation investment for land expropriation and resettlement is 7.78 billion yuan. The Three Gorges Corporation and Sichuan, Yunnan Two provinces signed a lump sum agreement, respectively, 3.46 billion yuan and 4.32 billion yuan. By the end of August 2008, the two provinces have received the Three Gorges Corporation to allocate 2.074 billion yuan of immigrant funds, accumulated 1.417 billion yuan, the use of 230 million yuan, the balance is 448 million yuan (including interest income). The reservoir inundation affected area of Xiluodu hydropower station involves 1 districts in 8 counties of Sichuan and Yunnan provinces, and plans to relocate 61035 people.　　As at the end of August 2008, the zones and Cofferdam areas had been relocated to 9639 people, and resettlement work in the reservoir area was underway. Second, audit evaluation audit results show that under the development idea of "building a power station, driving one's economy, improving an environment and benefiting a group of immigrants", the Three Gorges Corporation and its participating units have to overcome difficulties such as long construction cycle, complicated technology and heavy resettlement tasks, and gradually establish and improve the internal control system.　　Completes the stage construction task well. (i) The use of construction funds management is better.　　The Three Gorges Corporation attaches importance to the financial management work, according to the Feasibility study report request, according to the project schedule demand to raise the construction fund in time, the internal control system is comparatively sound, the accounting and the financial management comparison standard, the audit did not discover the embezzlement and the serious appropriation Construction fund question. (b) Construction management is notBreak up and step through the rules.　　After the audit of the Three Gorges Project in 2006, the audit the Three Gorges Corporation, analogy, increased the management of the Xiluodu project, refined the engineering organization, contract management and quality safety management process, the use of advanced information management system to control the level of engineering construction management gradually improved, the completion of the project quality rate of 90%. (iii) Establish market access system and continuously standardize the behavior of construction enterprises.　　On the basis of summarizing the experience of the construction of the Three Gorges Project, the Three Gorges Corporation has formulated a number of management systems, combined with the current situation of the domestic construction market and the actual situation of XILUODU project, has implemented the admittance system of construction units in the construction market, closed the operation of construction funds, and regularly cleaned up (iv) The governments of Sichuan and Yunnan provinces are actively organizing and coordinating, and the progress of resettlement is basically smooth. The two provincial governments attach great importance to the resettlement work, establish and improve the immigration management agencies, and formulate a number of immigration funds use and management provisions.　　Immigration management institutions at all levels overcome the difficulties of less personnel, heavier tasks and adjustment of resettlement policies, and actively organize the implementation of resettlement, the investigation and review of physical indicators to ensure the smooth construction of the project.　　The audit also found that there are some problems in investment control, schedule, bidding and management of affiliated enterprises in Xiluodu Project, and there are still some problems in the progress of resettlement, the management and use of immigrant funds in Sichuan and Yunnan provinces, which need to be improved.　　Third, the audit found the main problem (i) The project implementation budget has not been completed, investment control objectives are not clear, investment control management has yet to be strengthened. Xiluodu project began to build in 2003, has signed various types of contract amount of 38 billion yuan, the cumulative completion of investment of 15.2 billion yuan, but the Three Gorges Corporation has not yet prepared to complete the project implementation estimates. Because the project investment lacks the control standard and the basis of the division, the sub-item, the contract execution is not rigorous in the construction, the project cost audit is not strict and so on, causes the construction cost to increase, some individual projects surpasses may the research estimate. Statistics 264 complete ratio in 90% or more of the construction contract, the original contract amount of 3.817 billion yuan, as at the end of August 2008, the total investment increased by 1.097 billion yuan, increase the proportion of 28.74%.　　Owing to the absence of budget estimates, it is difficult for the audit to evaluate overall investment control.　　(b) Substantial compression of the duration, to some extent, increased the risk of engineering construction. According to the feasibility study report, the Xiluodu project plans to start in early 2002, November 2008 Jinsha River closure. and the actual March 2003 began to build, November 2007 completion of the Jinsha River closure. The preparation work was postponed for 15 months, the closure was 12 months ahead of schedule, the total compression period of 27 months, increased the project construction risk and difficulty, but also increased the project construction cost. Statistics 45 foreign Traffic jian ' an project, the contract amount is 2.014 billion yuan, because of the drive period and so on causes the massive change, the final settlement amount 2.685 billion yuan, the change rate reaches 33.32%. ForeignTraffic engineering began in August 2003, the same year in October, due to the short survey and design time, geological Survey is not in place, the F-Standard road Liangzi tunnel burst gas spill and burning major safety accidents, the construction of the import section of the shutdown 34 days.　　(iii) Some of the project bidding management is not standardized. Xiluodu project should tender 464 items, the contract value of 24.898 billion yuan.　　In the actual implementation, the project has not 219 items, accounting for 47.2%, the contract value of 1.679 billion yuan, accounting for 6.74%.　　(iv) Some affiliated enterprises to manage and perform their duties are not in place to obtain improper returns. Audit random participation in the construction of Xiluodu project part of the Three Gorges Corporation subordinate enterprises, found that some affiliated enterprises charge high, the performance of the responsibility is not in place. such as the Three Gorges Corporation will be the project's bidding agent directly entrusted to the affiliated enterprises of the Three Gorges International company. According to the Three Gorges Corporation internal tendering agent fee standard, the Three Gorges International company collects agency fees 25.71 million yuan, exceeds the national charge standard 10.1 million yuan.　　According to the 91 items of audit spot check, because of the compilation and examination of bidding documents and the lack of clear mark work, the technical terms and commercial terms of some project bidding documents are ambiguous, which leads to an increase of more than 50 million yuan in investment. From March 2003 to November 2006, the Three Gorges Corporation entrusted some supervision business of XILUODU project directly to the Three Gorges Development company, and signed 17 project supervision and other service contract agreements, The total contract price is 153.2869 million yuan, the cost is deducted, the Three Gorges Development company gains 34.7109 million yuan. In the actual supervision process, the Three Gorges development company field personnel input seriously insufficient, the qualification is low, the audit checks is not strict.　　Random Inspection of 22 project supervision Diary found that the supervision staff across the post, across the project, across the professional induction phenomenon is serious; The August 2007 personnel list found that no Supervisor qualification Certificate 49 people, accounting for the Company Creek Engineering Supervision Department personnel 23%.　　In addition, the audit also found that some projects in the construction of XILUODU Project contract management and settlement management is not strict enough, the construction, production and management of the housing area and investment exceeding the standard, increasing the cost of project construction, the quality of individual projects, safety management, there are still omissions;　　(e) Resettlement was not completed as scheduled. Mainly the construction area resettlement has not been completed. 2003, in order to meet the needs of engineering construction, Sichuan, Yunnan province to take temporary transitional way to start construction area resettlement relocation. At present, Sichuan Province has completed the construction area resettlement relocation work.　　Yunnan Province Construction Area Resettlement implementation plan has not been completed. In addition, the audit found that there were 14.　　4.1 billion yuan migrant funds due to many management links, the allocation is not timely. Iv. handling of audit findings and recommendations in view of the audit findings, the Audit Office has issued an auditing report and issued an audit decision book. At the same time: (i) the Three Gorges Corporation should compile the project execution budget as soon as possible and strengthen the engineeringThe effective control of state investment, establish scientific and reasonable engineering price difference calculation, settlement mechanism, improve investment control management system, and improve the efficiency of construction fund use. (ii) The Three Gorges Corporation should further strengthen the construction management, strictly enforce the bidding law, ensure that the bidding is open, fair and impartial, strengthen the contract management, improve the tightness and operability of bidding documents and contract terms, strictly enforce the contract stipulations, reduce unreasonable expenditure, and strengthen the management of affiliated enterprises,　　The market mechanism is used to guide its participation in bidding competition, and to supervise the subordinate enterprises to fulfill the obligations and responsibilities stipulated in the contract.　　(c) The relevant State departments and local governments should strengthen coordination and leadership, properly handle the contradictions between the development of local economy and the control of project investment, complete the resettlement plan as soon as possible, implement the resettlement policy effectively, and improve relevant measures to ensure social stability. V. The rectification of audit discovery problems the Three Gorges Corporation and its related units attach great importance to the problems and opinions put forward by the audit, combine the implementation of rectification with the strengthening of internal control management, and further standardize the engineering measurement and contract management, and correct the amount of the violation by more than 36 million yuan. The establishment of a number of management methods, adjust the organization, enrich the supervision staff, clear job responsibilities, strengthen job knowledge and technical training, improve the supervision and management mechanism.　　The unqualified construction enterprise promptly repaying, the strict admittance system. The two provincial governments in Sichuan and Yunnan attach great importance to the rectification of audit findings, and actively study the appropriate solutions to the problems of resettlement planning lag and inadequate policies. The Yunnan provincial government has tasked the provincial Immigration Bureau to implement a strict time-limited allocation system for migrant funds and to speed up the resettlement process.