China Resources (Holdings) Co (CRC) will pay 1.05 billion yuan (about HK$974 million) to take a 35 per cent stake in the second phase of the Pengcheng power plant in Xuzhou city, Jiangsu province, a company official said.
The stake matches its 35 per cent holding in the first phase of the coal-fired project.
The total investment in phase two, which has two 300 megawatt generators, is about three billion yuan.
CRC is the largest shareholder of China Resources (Xuzhou) Electric Power Co (CREP), the developer of phase one, which also has two 300 MW generators.
Other shareholders in CREP include the State Energy Investment Corp with a 30 per cent stake, Jiangsu International Trust and Investment Corp with 20 per cent and Xuzhou Investment General Corp with 15 per cent.
CREP general manager Wang Shuaiting said the company would sign the contract with its partners tomorrow in Hong Kong during the Jiangsu Foreign Trade and Investment Fair.
'If everything runs smoothly, the construction work in phase two will start in the second half of next year and will take three years to complete,' he said.