New World Infrastructure (NWI) plans to further increase its exposure in northeast China by setting up a joint energy investment company with the Liaoning Energy Corp. Liaoning Energy Corp president Ma Dong said the provincial government was planning to set up an energy fund with foreign investors in order to raise funds for future electricity development. 'We are aiming to list the energy fund in two years' time.' He said Liaoning Energy Corp had a stake in a number of power plants in the province with an annual electricity generating capacity of 2.7 million kiloWatts. He said Liaoning Energy had controlling stakes in more than one power plant and smaller stakes in others. 'The total asset value of the stake we own is about six billion yuan [about HK$5.58 billion],' he said. One of the assets is the Liaoning Power B plant. The corporation owns 61.6 per cent of the 400,000 kiloWatt plant with an asset value of 900 million yuan. He said negotiations were being held with NWI and Cheung Kong and an agreement with NWI was imminent. NWI executive director So Ngok said an agreement in principle would be signed with Liaoning Energy Corp within a week. He said Liaoning Energy would set up a joint venture company in which NWI would hold a minority stake of 49 per cent. The Chinese partner would inject its stake in existing power stations into the joint venture while NWI would inject capital for future development. Mr Ma said Liaoning was planning to build a number of power plants during the Ninth Five-Year Plan period. Mr So says Liaoning, China's heavy industrial province, has huge demand for electricity while NWI has plenty of capital and is seeking more investment opportunities. NWI deputy managing director and general manager Douglas Chan said the company had plenty of cash and had no need to raise funds in the near future, even after committing itself to the Liaoning Energy project. Mr So said NWI had reached a similar energy development agreement with Hebei province. 'The project in Hebei is a package for thermo-electricity to electricity transmission,' he said.