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CLP takes major share in China power plant
( 2002-09-24 10:08 ) (1 )

CLP Power China, a wholly owned subsidiary of CLP Group, one of Asia's largest power companies, signed a joint venture deal in Southwest China's Guizhou Province on Monday, which allows it for the first time to hold a majority stake in one of its Chinese mainland investments.

The joint venture, named Guizhou CLP Power, is also a backbone project for China's massive US$30 billion programme to transmit electricity from energy-rich western regions to the economically rich east.

Under the contract, the Hong Kong company holds a 70 per cent stake in the joint venture, Guizhou Electric Power Corporation 18 per cent and the Guizhou Infrastructure Investment Corp 12 per cent.

The joint venture will develop, construct and operate coal-fired generators with a combined capacity of 600 megawatts to supply electricity to economically booming Guangdong Province in South China. It is scheduled to go into operation by 2004.

"This represents an important step for CLP Power China in widening its geographical base into western China," said Dr Y B Lee, managing director of CLP Power China, during the inauguration ceremony on Monday, adding that the company is poised for further expansion into the fast-growing region.

Lee also said with rich and relatively cheap energy resources in Guizhou, the joint venture is expected to maintain competitive prices in the future.

Guizhou Province, a major base for the west-east electricity transmission project, plans to sell 4,000 megawatts of electricity to Guangdong Province annually.