The government of Tibet Autonomous Region and the State Grid Corporation of China signed an agreement to form a power company Saturday.

The power installation capacity of Tibet is aimed to reach 1.2 million kilowatts and power supply is expected to cover 90 percent of Tibetan residents by 2010, according to a blueprint designed by authorities.

The Tibet Power Corporation Ltd. will enjoy a series of preferential policies and serve as the main channel of central government's financial support in power construction, sources said.

The company will help promote hydro-power development, develop new energies, expand grid network and power supply coverage in the region.

Meanwhile, the central government will continue to provide policy and financial support for Tibet's power development and promote sound, effective and well-ordered development of Tibet's energy resources.

Other provinces, municipalities, autonomous regions and state enterprises are also required to continue their aid work in Tibet's power supply.

Source: Xinhua