HUANENG Power International, the second Chinese company listed in New York, signed two import contracts worth US$596 million yesterday for coal-fired power generation equipment. The equipment will be used in Huaneng's power plants in Dalian and Dandong. The purchase will be financed entirely through foreign loans, of which 85 per cent are in export credits. The remaining 15 per cent is from international commercial loans. The export credits have a term of 16 years, including a four-year grace period and bear an interest rate of 5.95 per cent. Huaneng Power International will import four sets of 350 megawatt power generating units for the facilities. The equipment will be supplied by a consortium of Sargent & Lundy and Westinghouse of the United States and Babcock Energy of Britain. Huaneng Dalian Power Plant has a planned capacity of 1,400 mW. The first phase, consisting of two 350 mW units, begins operation in 1998. Construction work is scheduled to begin on the second phase this year and be completed and operational in 1998. Huaneng Dandong Power Plant has a planned capacity of 2,500 mW. Building of phase one, with capacity of 700 mW, is to begin this year and completed in 1998. The company owns and operates five power plants with an aggregate installed capacity of 2,900 mW in five provinces.
