(Yicai) July 21 -- China has founded a new central state-owned enterprise that will be responsible for building and operating the CNY1.2 trillion (USD167.8 billion) Yarlung Zangbo hydropower project in China's western Xizang Autonomous Region, according to Xinhua News Agency.

China Yajiang Group was established on July 19 at a ceremony held in Beijing and attended by members of relevant government departments and Zhang Guoqing, Chinese vice premier and member of the Political Bureau of the Communist Party of China Central Committee.

Yajiang has become China’s 99th central SOE. It is 22nd on the central SOE list on the website of the State-Owned Assets Supervision and Administration Commission, right before China Energy Investment and after China Three Gorges, reflecting its important status in the energy sector.

Yajiang must carefully manage and implement engineering operations and construction, adhere to 'quality first' and 'safety oriented' standards, focus on scientific and technological breakthroughs and ecological protection, and promote engineering construction with a high sense of responsibility to history and the people, Zhang said at the ceremony.

The Yarlung Zangbo hydropower project, which was approved by the central government last December, has officially begun construction in Nyingchi, Xinhua reported on July 19. It will consist of five cascade hydropower stations and primarily deliver electricity for external consumption, while also addressing local demand in Xizang.

The project will take full advantage of the abundant water resources of the Yarlung Zangbo River and drive the development of surrounding new energy resources, creating a clean energy hub that integrates hydropower, wind, and solar power, according to Xinhua.

This is a major initiative in China's efforts toward green and low-carbon energy transformation and plays a crucial role in advancing the country's carbon peak and carbon neutrality goals and addressing global climate change, Xinhua noted.

The construction of the Yarlung Zangbo hydropower project will directly stimulate rapid development of local industries, including engineering construction, logistics transportation, and commercial services, creating substantial new employment opportunities, Xinhua said.

Upon completion, the project will greatly enhance local infrastructure in terms of electricity, water conservancy, and transportation, strengthening development connections between Xizang and other regions and bringing greater satisfaction, happiness, and security to people of all ethnic groups in Xizang, Xinhua added.

The government's key focus will be on restructuring and integrating central SOEs, speed up the allocation of state capital to critical industries related to national security and the lifeline of national economy, public services, emergency response capabilities, public welfare, and strategic emerging industries, Lin Qingmiao, head of the SASAC's bureau of enterprise reform, said in January.

In recent years, the SASAC has established several new central SOEs, including China Resources Recycling Group and China Digital Logistics Information.

Editor: Futura Costaglione