China Power Investment Creates Subsidiary in Jiangxi Province

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Researched by Industrial Info Resources (Sugar Land, Texas)--China Power Investment Corporation (Beijing), one of China's top five nationwide power producers, signed a joint-venture contract with Shenzhen Nanshan Power Station Company Limited (Guangdong, China), a leading local power producer, in mid-December 2007 to set up the Jiangxi CPI Xinchang Power Generation Company Limited (Nanchang, China) in central China's Jiangxi Province.

According to the contract, China Power will own 70%, and Nanshan Power will own 30%. The new company will be responsible for the development, operation and management of two 600-megawatt ultra supercritical coal-fired units in the Jiangxi Xinchang power plant.

The Xinchang power project has a total investment of $665 million, which requires a minimum registered capital of $133 million. The project is a key construction project in the 11th five-year plan (2006-10) of Jiangxi, and also a core project for China Power in the province.

The project's focus is to replace small units with larger units. The National Development and Reform Commission has given approval to conduct pre-stage preparation. The project also received approval from the State Environmental Protection Administration, and passed the examination of an expert panel in preliminary design. Construction on the project is expected to begin in February 2008, and both units are expected to go into operation in February and March 2009.

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