China Guodian Corporation Signs Strategic Cooperation Agreement with Shenzhen Energy

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Researched by Industrial Info Resources (Sugar Land, Texas). The signing ceremony for a strategic cooperation agreement between China Guodian Corporation (CGDC) and Shenzhen Energy Group Company, Limited (SEC) was held in Beijing on May 10, 2007. Zhou Dabing, President of CGDC and Gao Zimin, Chairman of SEC, attended the ceremony and signed the agreement on behalf of both parties.

According to the agreement, both parties agree to establish a strategic partnership and to call high-level meetings periodically to exchange information and discuss cooperation; both parties will strengthen the exchange on regional development strategies, planning and industry analysis reports, and related information such as hi-tech, environmental and advanced power generation technologies.

Both parties agree to enhance cooperation in power generation, new technology development, to jointly develop new power projects, expand the domestic market share, explore cooperation for oversea investment, and develop and introduce new technology and new equipment such as highly efficient clean power generation, energy-saving and consumption reduction, based on the participation of SEC in Guodian Huayingshan Power Project (2X300MW), Guodian Nanning Power Project (2X600MW) as well as other cooperative projects.

Established on the basis of partial assets of former State Power Corporation of China, CGDC is one of the five largest nationwide power generation groups approved by the State Council of China in the power industry restructuring. By the end of 2006, CGDC had three wholly-owned enterprises, 25 internal accounting enterprises, 65 holding enterprises and twelve shared enterprises. The total controllable installed capacity reached 44,450 MW, including 397,880 MW of thermal (89.4%); 4,050 MW of hydro (9.12%); and 618 MW of wind power (1.39%) capacity. The power sources owned by CGDC cover 29 provinces (autonomous regions and municipalities) with the total generation assets of equivalent $23.5 billion.

SEC is jointly established by the state-owned Assets Supervision Commission of Shenzhen City (75%) and Huaneng Power International, Incorporated (25%). By the end of 2005, SEC had nearly 20 subsidiaries, including two power companies listed in the Shenzhen Securities Exchange, controlling an installation capacity of 5,865 MW. SEC has established a comprehensive strategic layout dominated in the power industry, together with related industries.

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