Go-ahead expected on power scheme

THE first Taiwanese-owned electricity plant on the mainland is to start production by 1999 in Fujian.

The city of Zhangzhou is set to sign an agreement with Taiwan tycoon Y. C. Wang, chairman of Formosa Plastics, said party secretary Cao Degan.

'I can confirm we have finished negotiations and we are going to sign the agreement very soon. But I can't give a date yet,' Mr Cao said yesterday.

It was the first signal that Beijing has given the go-ahead for the mega-project, which has been under negotiation for two years.

Mr Cao said the plant, capable of producing up to 3.6 million kilowatts, would cost more than US$1 billion (HK$7.72 billion) and would be solely owned by Mr Wang.

Mr Wang will be allowed to build a pier beside the plant.

However, Mr Cao declined to comment on whether Zhangzhou had made a better offer than other Fujian cities to clinch the deal.

Meanwhile, Zhangzhou, also the biggest agricultural base in Fujian, will launch a number of projects to strengthen agricultural co-production with Taiwan.

Mr Cao said an experimental farming base would be set up through co-operation with Taiwan investors.

Under the scheme, Taiwan businessmen would be invited to develop farming-related industries in the city.

They would be given preferential policies such as lower land prices and taxes.

Director of the provincial planning department, Yu Jinman , said Fujian had drafted plans to import technology for processing farm products from Taiwan.