Datang International Power Generation, the second-largest Hong Kong-listed electricity supplier on the mainland, has teamed with Gantou Hydropower to form a joint venture to invest 22.5 billion yuan in two hydropower projects in Sichuan province.
The venture, named Datang Gandian, would invest 14.5 billion yuan in building the Changheba Hydropower Project and eight billion yuan in the Huangjinping Hydropower Project, Datang said in a statement to the Hong Kong stock exchange yesterday.
Datang will finance 80 per cent of the new firm while Gantou will provide the remaining funding. Gantou only registered as a company in March.
'There is a rapid growth in the demand for power in east China due to the economic development in the area. As such, it is anticipated that there will be a growing demand for power generation in the market for the projects,' Datang said.
Both planned power projects, which have yet to be approved by the government, are located in Kangding county, Ganzi prefecture. The two planned hydro plants will feed their power to the central China power grid or to the east China grid.
The Changheba project will have a generating capacity of 2,600 megawatts while Huangjinping will have a capacity of 800 megawatts.