Cpce Development Strategy

In March 2002, the State Council officially approved the Scheme on Power System Reform, establishing the reform aiming to "break monopoly, introduce competition, improve efficiency, cut cost, improve electricity price mechanism and optimize resource configuration, promote the development of electricity, push national networking, and construct a power market system which features detachment of enterprises from the government, fair competition, openness, orderly competition and healthy development". According to the principle of focusing on core business in the scheme, the State Power Corporation was canceled with respect to central management. The power assets managed by the State Power Corporation were divided. Power planning, design and hydropower construction units covering all over the country were reconstructed into four auxiliary group companies that managed directly by the central government. As to auxiliary units of regional and provincial power companies, those enterprises related to design, building and repair and construction should be separated from power grid enterprises and enter the market.During the power system reform, 5 years of concession period was given to the construction industry with China's access to WTO, and 2006 would be the last year of protection. In the construction industry, in particular the power infrastructure industry, a large amount of international project contracting companies will enter the Chinese market, leading to internationalization of domestic competition and human resources competition. Facing the fierce international competition, the power infrastructure industry will not be able to compete with international companies if the original infrastructure system is still adopted, i.e. dividing a complete project into different units of design, purchase and construction etc., which results in divided authority in administration. At the same time, domestic design and project construction units should follow international practice in terms of management and operation if they try to go abroad and take a share of the international market.How can the domestic power consulting companies address the challenge and grasp the opportunities to achieve better development in the situation? In order to give better explanation, the China Power Construction Engineering Consulting Co. (hereinafter referred to as CPCE corporation) is taken as an example for further discussion. CPCE corporation was positioned as a consulting company that was...