China Travel Service (Holdings) Hong Kong (CTS) is negotiating to buy controlling stakes in two power plants in the central China province of Hubei, to cost the company several billion yuan. It is the group's third move to enlarge its infrastructure portfolio after buying the Shaanxi Weihe Power Plant and a toll road segment of the Beijing-Tianjin Expressway. Michael Ng Chi-man, an executive director of CTS's listed arm, China Travel International Investment (CTII), said the company might join its parent company in investing in the two power plants. He would also not rule out the possibility of CTII hiving off its infrastructure business on the Hong Kong stock exchange. Hubei province Planning Commission's energy department director, He Zhongmin, said negotiations with CTS to transfer a stake in the completed Hanchuan Power Plant and to build the second phase of Ezhou Power Plant were approaching the final stages. 'The main obstacle is that CTS wants to take a controlling stake in both projects while the Chinese side hasn't made the decision yet,' Mr He said. Hanchuan Power Plant, which consists of two generators with a capacity of 600 megawatts, has been in operation for five years and was built at a cost of two billion yuan (about HK$1.87 billion). The investment came from National Energy Development Corp and Hubei Electric Power Development Corp, which owns 70 per cent of the plant. The Ezhou Power Plant has two generators, a designed capacity of 1,200 MW and will cost between eight billion and nine billion yuan, Mr He said. Mr Ng, who is also a spokesman for CTII, said the company was interested in the two power projects and might join the parent company. 'But no decision has been made at this stage as no agreement has been reached.' He said CTII was under no pressure to raise funds in the first half of this year even though the company was committed to the power plants. 'We still have sufficient working capital of more than HK$2 billion at the moment.' He said CTII has not finalised its internal restructuring plan. 'If we are successful in acquiring a controlling stake in Sun Fook Kong, we may inject all of our non-core assets into it, such as infrastructure, industrial and property projects,' he said. 'We want to keep CTII as a travel and transport counter in the stockmarket. 'But we'll not rule out the possibility of seeking a separate listing for our infrastructure business if we are able to increase the portfolio in future.'