China Light & Power has signed a multi-billion dollar, joint-venture agreement with several partners, bringing the planned construction of a 1,050 megawatt, gas-fired power station in Shenzhen a step closer to reality.
The deal signed yesterday includes China Light, Exxon Energy of the US, Shenzhen Qianwan Electric Power Development, Guangdong Electric Power Holdings - both of China - and Kanematsu Power Co of Japan.
A China Light spokesman said the project - for which a Memorandum of Understanding was signed last October - was expected to cost between $6 and $7 billion, and be completed in 2000.
Investors reacted positively to the news. China Light shares surged 2.89 per cent to $34.50, their biggest one-day gain in three months.
China Light and Exxon will each take a 17.5 per cent interest, the two Chinese parties will hold a total of 36 per cent while Kanematsu will have 29 per cent.
The Shenzhen plant will consist of three units of 350MW class combined-cycle gas turbines fuelled mainly by natural gas.