Construction on a power plant with a designed capacity of 1.2 million kilowatts, which is listed as a key construction project of the country, began in Xilin Gol of Inner Mongolia Autonomous Region on July 1.

With a total investment of 4.95 billion yuan (US$596 million), the power plant will take three years to be completed. Once in operation, the electric power it generates will be transferred to the North China power network which covers Beijing, Tianjin and Tanggu.

Located about 200 kilometers from Beijing, the power plant, a major power source of the country's gigantic west-to-east power transfer project, will effectively relieve the power shortage in the North. It is also expected to benefit the 2008 Beijing Olympic Games.