Henderson in $2.43b Yantai deal
HENDERSON Land Development has sealed a deal worth an estimated 1.8 billion yuan (about HK$2.43 billion) to develop a joint venture power plant in Yantai, Shandong province.
The company signed an agreement with the Yantai municipal government yesterday for the development of a power plant in Moushan, sources said.
The proposed involves the installation two 300,000 kilowatt generators at the Moushan power plant and is the biggest project being offered to foreign participation by the city.
The co-operation between Henderson Land and the Electricity Bureau of Yantai in the 50-50 venture will cover a period of 25 years.
Sources said the joint venture's registered capital would account for 30 per cent of the total investment, and the remaining 70 per cent would be raised via loan syndications from both partners.
The joint venture will be the first phase in the development of the Moushan power plant. Yantai intends to increase the plant's capacity to 1.8 million kilowatts, with an estimated investment of 7.2 billion yuan.
Altogether 10 power projects are being offered for foreign investment at the Shandong provincial trade fair which opened in Hongkong yesterday.
Mr Li Chunting, the province's vice-governor, said China Light and Power had also signed a letter of intent for a US$600 million joint expansion of a power plant in Sheheng.
He said this project was intended to double the existing capacity of the plant to 2.4 million kilowatts, but shareholding in the venture has not been finalised.
Hopewell Holdings and Sun Hung Kai and Co are also said to be interested in participating in power projects in the province, while New World Development, Lippo Group and Allied Group are keen to invest in property, industry and other related businesses.
New World chairman Cheng Yu-tung and Allied chairman Lee Ming Tee were among the guests attending the trade fair's opening ceremony yesterday.
Lippo director Felix Ma said his group was considering many projects in Shandong, adding that many Hongkong-listed companies, and investors from Japan, Singapore and the US were interested in partnering them.
Mr Li said that in addition to attracting foreigners, Shandong was striving to speed up the shareholding structure of state-owned enterprises.
