North Korea plans to import large amounts of equipment needed for hydroelectric power plants established as a joint venture with China. North Korea and China appear to be continuing the joint venture even though such ventures are prohibited by the U.N. Security Council’s sanctions against the North.
A contract between a North Korean electricity trading company and an exporter in China’s Fujian Province that was recently acquired by Daily NK indicates that it was concluded at the request of the China-North Korea Hydroelectric Power Company.
The China-North Korea Hydroelectric Power Company, established in 1995 as a joint venture between the two countries, operates four hydroelectric plants called Taepyongman, Supung, Wiwon, and Unbong on the Yalu River. The contract states that it was concluded in May and that the ordered equipment is supposed to be delivered by Aug. 30.
The items that the China-North Korea Hydroelectric Power Company has arranged to be imported from China are 220-kilovolt breakers and insulated switches, insulated bushings for 110-kilovolt transformers, fiberglass, and fiberglass tape.
The import contract is worth RMB 6.78 million, or around USD 932,445. The contract stipulates that payment should be made in installments within five months of delivery.
The ordered items are supposed to be delivered to Nampo Port in North Korea in the “delivered at place” method, which means that all delivery costs will be covered by the Chinese exporter.
However, joint ventures with North Korea are prohibited by international sanctions. In Resolutions 2371 and 2375, among others, the U.N. Security Council banned the establishment, maintenance and operation of joint ventures or cooperative ventures with North Korean organizations or individuals.
Nonetheless, the contract obtained by Daily NK confirms that the company continues to operate as a joint venture between North Korea and China.
China and North Korea each receive half of the electricity generated by the China-North Korea Hydroelectric Power Company’s four hydroelectric power stations, which were jointly built by the two countries. North Korea then sells some of the generated electricity back to China to earn more foreign currency, while supplying the remainder to military facilities and munitions factories inside the country.
Daily NK works with a network of sources living in North Korea, China, and elsewhere. Their identities remain anonymous for security reasons.
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July 05, 2024 at 12:00PM
by DailyNK(North Korean Media)