SW CHINA: LIQUOR AND INFRASTRUCTURE INVESTMENT FUEL YIBIN'S

UNCLAS SECTION 01 OF 02 CHENGDU 000021 SENSITIVE SIPDIS DEPT FOR EAP/CM E.O. 12958: N/A TAGS: ECON EINV ECIN ELTN ENRG SENV PGOV CH SUBJECT: SW CHINA: LIQUOR AND INFRASTRUCTURE INVESTMENT FUEL YIBIN'S GROWTH; GREENING ENERGY; CITIZEN PETITIONS FIGHT CORRUPTION ¶1. (U) This cable contains sensitive but unclassified information - not for distribution on the Internet. ¶2. (SBU) Summary: Yibin Mayor Wu Guanglei told Consul General January 7 that the city's economy grew by 15 percent in 2009; he expected 14 percent growth in 2010. Wuliangye, China's largest liquor producer, is striving to become more energy efficient. Road, rail, and airport projects will increase Yibin's regional integration. Wind and nuclear power will likely figure in the city's future energy mix. Wu said that Yibin's petition system works: citizen complaints led to the removal and punishment of three government officials last year. End Summary. Liquor, Chemicals, and Infrastructure Push Yibin's Economy Forward -------------- ¶3. (SBU) Mayor Wu Guanglei said Yibin's economy grew by 15 percent in 2009, and he expects it to achieve 14 percent growth in 2010. One driving force behind the city's economic development is liquor producer Wuliangye. (Note: A late 2009 press report claimed that 70 percent of Yibin residents' income was directly or indirectly tied to Wuliangye. End Note.) Two other economically important firms in Yibin are Tianyuan, China's largest producer of polyvinyl chloride, and Siliya, which produces artificial fibers. ¶4. (SBU) Infrastructure investment is also a major contributor to Yibin's economic growth. Yibin plans to push ahead with several large projects. In addition to development of a 23-berth port facility at the head of the Yangtze River (septel),Yibin is also building transportation links under the "6631" regional development project. The 6631 Project calls for the construction of six expressways, six railroads, and three "ones" -- one "golden waterway," one airport, and one river port. A rail line connecting Yibin to Guiyang and Chengdu, and expressways to Leshan and Luzhou, are already under construction. The city plans to build a 900 million RMB (USD 132 million) airport by 2014 that will accommodate Boeing 747s. Emission Reductions; Investment in Clean Energy; Forests -------------- -------------- ¶5. (SBU) Wu said that Yibin had far to go in improving its energy efficiency. Wu predicted, nevertheless, that Yibin would achieve the national energy reduction goals of the 11th Five-Year Program, which ends in 2010. (Note: The 11th Five-Year Program calls for a 20 percent reduction in energy intensity this year, compared to 2005. End Note.) He said that Wuliangye, as one example, was converting waste into fuel. ¶6. (SBU) Yibin hopes to build a nuclear power plant in the city, but the plan is still in its very early stages. Wu said wind power would also help Yibin reduce emissions. Yibin has the second largest urban forested park in China, with forest coverage averaging 35 percent. Address Citizen Concerns through Petitions; Fighting Corruption -------------- -------------- ¶7. (SBU) Mayor Wu said that social conflicts arise, and citizens naturally make requests to the government. For example, the many demolitions of old housing brought by economic growth were causing more conflicts. Wu said that citizen petitions to the government on official malfeasance were handled separately from other requests and complaints, and sometimes resulted in CHENGDU 00000021 002 OF 002 investigations. In 2009, three Yibin officials were removed from their posts and punished as a result of citizen's petitions, he stressed. (Note: According to press reports, Vice Mayor Cheng Guangli was fired in March 2009 for playing too much mahjong and other unspecified offenses (tinyurl.com/yibin-mahjong),while in October 2009, the former head of Yibin's Baihu district branch of the State Tax Bureau was sentenced to 10 years in prison for raping a young girl (tinyurl.com/yibin-tax). ¶8. (U) In mid 2009, two counties under Yibin City started an anti-corruption experiment that requires senior officials and their families to register their income and assets, and submit to financial scrutiny (tinyurl.com/yibin-reporting). Seventy-five officials came under this program in 2009; it will soon expand to cover 400 officials. BROWN