The Central SOEs launched an all-out effort to relieve the damage of the earthquake

May 21, 2008

The strong earthquake at Wenchuan in Sichuan Province has caused heavy loss and damage to the people's life and property in the area, and some central SOEs have also suffered severely from the catastrophe. Three of the central SOEs have their headquarters in Sichuan , and over 50 have subsidiaries or branches in the province. According to preliminary statistics, over 3,000 employees of the central SOEs are either injured, dead, missing or lost contact with during the disaster. Five central SOEs have suffered the most: Dongfang Electric Corporation, Sinohydro Corporation, State Grid Corporation, China National Chemical Corporation, and China Railway Engineering Corporation (CREC). As a result of the earthquake, electrical power and telecommunications facilities have been damaged seriously. The electricity facilities of the branches of the State Grid Corporation in 110 counties in Sichuan , Chongqing , Shaanxi , Gansu and Shanxi have been damaged in varying degrees. 3.64 million households suffered electrical failure. 247 transformer substations which are above 35 kilovolts have stopped operation, as well as 1,643 transmission lines which are above 10 kilovolts. 4,457 base stations of China Mobile Communications Corporation have been out of service, more than 800 base stations of China Network Communications Group Corporation have been destroyed, and the facilities of China Telecommunications Corporation, China United Telecommunications Corporation and China Tietong Telecommunications Corporation have also been seriously damaged. The telecommunications of Wenchuan and other seriously damaged counties have been shut off. These areas have become isolated islands.

After the earthquake, SASAC and the central SOEs earnestly carried out the directions and deployment of the CPC Central Committee and the State Council, took rapid actions and launched an all-out effort to relieve the disaster. SASAC summoned an emergency meeting at 4:00 p.m. on May 12, gathered information about the central SOEs hit by the quake and launched the prepared emergency plan. At 21:00 on the same day, SASAC summoned the meeting of its emergency leading group, conveyed the gist of the disaster relief emergency meeting of the State Council, and carried out measures for rescuing the employees, restoring power supply, telecommunications and roads and ensuring the availability of relief materials. On the morning of May 13, the second meeting of the emergency leading group was summoned to convey the gist of meetings of the Political Bureau of the CPC Central Committee and the State Council. The meeting deployed the disaster relief work by SASAC and the central SOEs, and issued the Emergency Notice for the Central SOEs on Disaster Relief Work. On the afternoon of May 14, SASAC summoned an emergency video conference to deploy next-step work for the central SOEs for disaster relief. During the period, SASAC enhanced coordination with all sectors and made its utmost efforts in organizing the central SOEs to do the disaster relief work.

The central SOEs, faced with the devastating natural disaster, launched the prepared emergency plans, organized large groups of rescuers, assembled large amount of relief equipment and materials, and committed themselves to the disaster relief work immediately. The central SOEs concerned responded quickly, issued appropriate commands, carried out effective measures, made timely decisions, and played an important role in the overall relief work.

1 . Rescue people at any cost and never abandon a single life.

In this earthquake disaster, the central SOEs concerned always took rescuing people as the paramount task, and spared no effort to save each life. Dongfang Electric Corporation immediately organized its employees to relieve the disaster after the quake. The central SOEs in neighboring areas such as China National Erzhong Group Corporation, CREC 2nd Bureau, Chengdu Aircraft Industrial (Group) Co. Ltd. of China Aviation Industry Corporation ? also dispatched rescue and relief teams to the scene of disaster. More than 1,000 PLA soldiers joined the relief effort. The number of people who were rescued out of the ruins added up to over 400. Managers of the Qingping Phosphorus Mine of China Chemical Corporation organized thousands of employees, their family members and local villagers to save themselves and rescue others under the urgent situation when rescue crews were blocked outside the mountain and could not carry out relief work. Dozens of miners stuck in the mine were brought out of danger and over 2,000 nearby residents were also rescued.

In order to save people's lives, the central SOEs in surrounding regions instantly organized rescue teams to participate in the disaster-relief operations. According to the requirement from SASAC, the subsidiaries and branches of 20 central SOEs urgently mustered 936 units of forklift truck, crane and other engineering equipment for the disaster-relief work following the directions from the Command Center for Disaster-Relief of the State Council. Sinohydro Corporation organized 10 shock rescue brigades with around 1,000 members in total, and dispatched 280 units of excavator, loader, mobile crane, diesel generator and other disaster-relief equipment for the rescue work. All the subsidiaries and branches, which are located in the quake-stricken areas, of China State Construction Engineering Corporation deployed around 100 leading technicians, more than 500 workers and 100-plus units of all kinds of vehicle and mechanical equipment. The leaders of a bridge construction company, which is the subsidiary of the 3rd Road Construction Bureau of China Communications Construction Group, led more than 30 employees to voluntarily participate in the rescue operation for the buried students of Dujiangyan City's Juyuan Middle School. Panzhihua Iron and Steel (Group) Company immediately mustered 50 people from its General Employees' Hospital, setting up a medical-aid team, and mustered 10 civil engineers from its Engineering Company, setting up an experts team, to the disaster areas for rescue work. State Grid Corporation of China mustered 185 leading doctors from its 13 Workers ' Hospitals , rushed them to the disaster areas with medical vehicles and related medical equipment to carry out the medical-aid work. China National Machinery Industry Corporation (CNMIC) dispatched 19 earth excavators to the disaster areas. China Ocean Aviation Company, which is a subsidiary of CNMIC, also mustered 12 airplanes for the disaster-relief work immediately. China National Offshore Oil Corporation dispatched 14 helicopters, which are used for its offshore oil operations, to participate in the disaster-relief operation. China National Foreign Trade Transportation Corporation (Sinotrans) immediately mobilized its airplanes for the disaster-relief operation. China Aviation Industry Corporation ? instantly hired planes for aero-photographing and surveying of the disaster areas.

Central SOEs brought their hi-tech advantage to full play, and rendered strong support for the disaster-relief work. China North Industries Group Corporation urgently dispatched two HUAYING auto pilot planes and portable mobile base stations to Sichuan for aero-photographing, surveying and mapping of the disaster areas, and sent back clear photos and remote survey data to the General Command Center for Disaster-Relief. The 2nd Academy of China Aerospace Science and Industry Company instantaneously dispatched disaster survey experts with high resolution airborne imaging radar for aero-photographing and observing the disaster areas. They used the all-weather working radar imaging system to obtain the damage images of the disaster areas, which provided the General Command Center for Disaster Relief with data and facts to facilitate decision-making.

2. Guarantee the lifelines of disaster relief by restoring power, telecommunications and transportation.

Right after the earthquake, the central SOEs in power, telecommunications and transportation sectors reacted quickly. They rushed to repair power, telecommunications, road and railway infrastructures, and increase transport capacity in order to guarantee the lifelines of disaster relief.

Central SOEs in power sector, bearing in mind the importance of electricity availability in earthquake-stricken areas, made every effort to repair the electric network and safeguard the light of life. State Grid Corporation of China , moving into top gear, urgently took six measures to rescue lives and properties and repair damaged power infrastructure, to ensure electric network safety and power supply. Up to 6:00am May 20, State Grid offered massive rescue equipments including 932 generators (33582 kilowatt), 277 distribution transformers and 340,000 various insulators. State Grid also allocated more than 2500 professional repairers to Sichuan from all over China . Up to 6:00am May 20, State Grid has restored 220 (89% of total) transformers substations ( = 35kV), resumed 1,497 (91% of total) transmission lines ( = 10kV) and recovered the power supply for 2,530,000 families (92% of total) who suffered from blackout. All power generating enterprises did at all cost to ensure the operation of plants inside and around Sichuan Province and power supply of Sichuan Area.

Central SOEs in telecommunications sector mobilized all available resources to repair infrastructure and pass the information of life. China Mobile Communications Corporation (China Mobile) urgently delivered 35 satellite phones, 300 diesel generator backups and 15 emergency telecommunications vehicles to earthquake areas, and used satellites to cover the base stations and reduce the number of “detached island of information”. China Telecommunications Corporation (China Telecom) dispatched 6 groups of repairers and successfully restored optical fiber cables for telecommunications in Wenchuan on May 15. At 20:00 May 19, telecommunications have been recovered in all county-towns and 50% of villages and towns in earthquake stricken areas. China Telecom has also provided local governments, military forces, armed police and power sector with 157 satellite phones to lead and guide the Disaster Relief. China Network Communications Group Corporation (China Netcom) delivered 144 sets of equipment and sent a large number of emergency telecommunications equipment as well as professionals from the whole country to earthquake areas. They also prepared a fund of RMB 25 million to support the telecommunications system of earthquake areas. May 15, China Netcom emergency team, carrying maritime satellites and Globalstars on their back, struggled into the most heavily damaged Yingxiu Town by speed boat and on foot and restored telecommunications system for the Command Center of Aba. China United Telecommunications Corporation (China Unicom) immediately sent satellite telecommunications vehicles to Wenchuan and delivered 100 sets of VSAT to those areas who suffered most from the earthquake. Up to 11:00am May 17, the telecommunications in all disaster stricken counties and a number of villages and towns of Sichuan has been recovered. China Satellite Communications Corporation (China Satcom) offered 350 satellite phones to disaster stricken areas. At 21:00pm May 13, one of China Satcom employees, carrying 10 satellite phones, arrived at Yingxiu Town after a 7-hour walk. He made a satellite phone call reporting the situation to Command Center in Chengdu , which was the first call from the seismic epicenter areas after the earthquake. Up to May 18, China Satcom has provided 1,150 satellite phones to earthquake stricken areas. China Tietong Telecommunications Corporation (China Tietong) dispatched 2,340 person-time repairers, relocated 825 vehicle-time emergency vehicles and provided 95 power generators, which effectively guaranteed the smoothness of telecommunications along the railways. Moreover, telecommunications equipment manufacturers have made every effort to secure the provision of equipment. Up to May 18, Alcatel Shanghai Bell Co., Ltd (Shanghai Bell) took urgent initiative to relocated accumulatively 35 tons of telecommunications equipments to disaster areas, with the total value of RMB 55 million. Shanghai Bell has also sent out many engineers and technicians to participate in telecommunications infrastructure repairing. Up to May 19, Wuhan Research Institute of Post & Telecommunications has delivered RMB 20 million telecommunications equipments to the disaster areas.

The central SOEs in the construction and engineering sector raced against time to repair the damaged trunk lines in the earthquake-hit areas and made every effort to clear the path of life. China Railway Engineering Corporation (CREC) sent the strongest team and the best equipment to the frontline at the fastest speed. 2,585 rescuers in 39 batches and 572 sets of rescue equipment have been sent to the heavily damaged areas (Dujiangyan, Mianzhu, etc.) and to the heavily destroyed rail trunk lines and feeder lines (the railway from Baoji to Chengdu , Baoji to Tianshui, Deyang to Tianchi, etc.). The CREC 1st Bureau and China CREC Railway Electrification Bureau Group immediately delivered more than 700 rescuers and 70 machines to the Baoji-Chengdu railway. The CREC 8th Bureau used only 15 hours to fully restore the Deyang to Tianchi railway which is the “path of life” connecting Mianyang and the heavily damaged Hanwang. On May 16th, CRCC 23rd Bureau's disaster relief team arrived at the worst-hit Tianbao village, at Yinghua township of Shifang county, and started to clear the roads. China Communications Construction Company, Ltd., China State Construction Engineering Corp., and China Gezhouba Water & Power (Group) Co., Ltd., have all joined the relief efforts as quickly as possible.

The central SOEs in the communications and transportation sector met the demand of disaster areas at all cost with a view to passing on the hopes of life. Over the past week, the three major airlines have made more than 540 flights, delivering huge amounts of rescuers, medicine, food and other badly needed materials. By 12:00 am May 18th, China National Aviation Holding Company has made 192 special flights for disaster relief transporting 6,675 soldiers and medical workers, and 1,833.452 tons of relief materials. China Eastern Air Holding Company quickly readjusted its production and mobilized many cargo planes and all-purpose planes. By 24:00 May 19th, it has completed 147 special flights transporting 6,136 rescuers and 1,161.6 tons of relief materials and medical equipment. China Southern Air Holding Company formed the Earthquake Relief Force consisting of 20 airplanes, 100 pilots and 800 ground crew. By 10:00am May 19th, it has completed 200-plus urgent flights, transporting 6,700-plus armed police and medical workers, and 1,300-plus tons of relief materials. China Changjiang National Shipping (Group) Corp. quickly mobilized its transportation facilities and has delivered 2,700 tons of petrol to the earthquake-hit areas by May 15th.

3. Make all-out efforts to ensure the supply of relief materials.

After the earthquake, the central SOEs in food, pharmaceutical, light industry, chemical, building materials, oil and petrol chemical sectors produced day and night, and spared no efforts to supply disaster areas with badly needed materials.

The central SOEs in the grain sector immediately organized production, transportation and allocation of materials to ensure the daily life of earthquake victims. China Grain Reserves Corporation processed and delivered 3,000 tons of rice, 100,000 tons of centrally reserved paddy, 50,000 tons of centrally reserved wheat, and 14,000 tons of centrally reserved cooking oil. China National Cereals, Oils & Foodstuffs Corp. (COFCO) sent grain, oil, and food to the heavily-hit Tongji town of Pengzhou and Longmenshan. China National Salt Industry Corporation ensured the salt supply of disaster areas. According to the needs of disaster areas, China Huafu Trade and Development Group Corp. supplied centrally reserved meat and sugar in coordination with other departments.

Central medical and pharmaceutical SOEs quickly organized forces to urgently provide medicine and medical instruments to earthquake-stricken areas. China National Pharmaceutical Group Corporation (CNPGC) undertook the task of relocating central medical reserves, and had provided urgently needed materials to earthquake-stricken areas such as respirator, ECG monitor, surgery instruments, transfusion set and iodine since May 13. CNPGC had urgently provided 700 tons of medicine and medical instruments to earthquake-stricken areas, valued at RMB 250 million in total. China National Biotec Corporation (CNBC) urgently allocated and transported 500 thousand doses of refined tetanus antitoxin, as well as blood typing diagnostic reagents and ancillary materials to earthquake-stricken areas.

Central SOEs in the sectors of light industry, chemical industry and building materials industry spared no effort to ensure the supply of emergency materials to the quake-hit areas. Xinxing Ductile Iron Pipes Group Corporation quickly organized 9 subsidiaries to produce emergency materials day and night such as tents, first-aid kits, facial masks, camping beds, stretchers, mobile kitchens, cotton-wadded quilts and mosquito nets, and had provided all kinds of materials totally valued at RMB 28.2 million by May 19. China Petroleum & Chemical Corporation produced disinfectant materials day and night such as Peractic acid, sodium hypochlorite, and had produced 127 tons of disinfectant solution to disaster areas by May 19. At the same time 100 thousand pairs of medical gloves were produced to supply disaster areas. Baosteel Group Corporation quickly produced colored-steel houses, and the first batch had already been shipped to the disaster areas. China National Building Material Group Corporation rushed to manufacture 100 units of new-type quick installation houses for disaster areas. At the requirement of the National Command Center for Disaster Relief, China National Building Material Group Corporation will quickly increase its capacity of production from 4,500 units of new-type quick installation houses to 10,000 units per month so as to help the restoration of the disaster areas as quickly as possible.

Central petroleum & petrochemical corporations took various measures to ensure oil & gas supply in earthquake-stricken areas. China National Petroleum Corporation (CNPC) subsidiaries manufactured oil products at fully capacity, increased to supply 100 thousand tons of oil products to Sichuan and sent 15 sets of small mobile dispatching tank truck to supply oils in the front line. CNPC also started the “green channel” in stations on the way from Sichuan to Dujiangyan and Wenchuan to ensure supply to disaster areas. By 17:00 on May 18, CNPC had resumed oil supply to all county towns in heavily damaged areas of Sichuan . China Petroleum & Chemical Corporation urgently allocated and transported 100 thousand tons of product oil to guarantee 24h uninterrupted oil supply around the clock, and make sure that the rescue machines and equipment are refueled with diesel or petrol wherever they go. China Aviation Oil Holding Company, shipped oil products to airports in disaster areas to meet their needs of aviation oil supply.

4. Actively donate funds and materials to support earthquake relief.

Immediately after the devastating earthquake in Wenchuan County of Sichuan Province, SASAC and central SOEs implemented decisions and directions of the Central Committee of CPC and the State Council, took emergency actions and played leading roles in the disaster-relief work. Along with helping the disaster-affected enterprises themselves, SASAC and central SOEs donated funds and materials to support relief work in the disaster-hit areas. By 17:00 May 20, 144 central SOEs had donated money and materials valued at RMB 2.09 billion in total, including RMB 1.58 billion cash donations. 63 of the central SOEs made donations valued over RMB 10 million.

Currently, central SOEs are continuing with their efforts to organize and mobilize all resources available, and are fully committed to disaster relief activities. We will take disaster relief as the top priority for the present period, unswervingly follow the plans and arrangements of the State Council, continue to strengthen organization and coordination of the relief efforts undertaken by central SOEs, and make all-out efforts to rescue stranded people, repair and restore power, telecommunications and road facilities and other infrastructure, allocate and transport badly-demanded relief materials, and make our due contributions to the earthquake relief. In the meantime, we will provide all assistance needed so that the disaster-hit enterprises can resume operation and production as soon as possible, and will provide all support for the restoration and reconstruction of the disaster-stricken areas.