China Guodian Signs Agreement for $2.9 Billion Energy Development Plan in Xinjiang Region

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Researched by Industrial Info Resources (Sugar Land, Texas)--Guodian Xinjiang Electric Power Company Limited (Urumchi), a fully owned subsidiary of China Guodian Corporation (Beijing), has signed an agreement to build energy projects with the government of the Yili Kazak Autonomous Prefecture in northwestern China's Xinjiang region, China Guodian announced on July 16.

According to the agreement, Guodian Xinjiang Electric will invest about $2.9 billion for the energy development plan, which includes the construction of the 600-megawatt (MW) Phase I of the Yining thermal power plant and the Zaikou hydropower station project during the 11th Five-Year Plan (2006-10). The plan also involves preparing a batch of hydropower projects to be approved in the prefecture.

The thermal power plant, southwest of the Border Cooperation Zone in Yining City, is about 7.6 kilometers away from Yining downtown. Two 300-MW cogeneration units will be built in Phase I. The feasibility report for this project was approved on July 11, and construction is scheduled to start in March 2009. The plant's first unit is expected to go into operation in October 2010, and the second is scheduled to go into operation in April 2011.

China Guodian, one of the top five nationwide power producers in China, was one of the first major corporations to engage in the investment and development of power source projects in Yili. In September 2006, all four units of the company's Xinjiang's Jilintai Hydropower Station I, the largest hydropower project in Xinjiang, were put into commercial operation, greatly alleviating the prefecture's power shortage.

The signing of the agreement is also one of the company's strategic measures to become a comprehensive energy development enterprise group. Guodian Xinjiang plans to build 12 power projects with a total installed capacity of 4.6 GW and two coal mines with a total production capacity of 6 million metric tons per year during the 11th Five-Year Plan.

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