Phase IV of Anhui Wenergy's 1,000-Megawatt Tongling Power Plant Expansion Project Receives Approval from the NDRC

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Researched by Industrial Info Resources (Sugar Land, Texas)--Phase IV of the Anhui Tongling Power Plant Expansion Project received approval from the National Development and Reform Commission recently, the Board of Directors of Anhui Wenergy Company Limited (SHE:00543) (Hefei, China) announced on June 11, 2008.

Tongling Power Plant is an old power plant located at the Henggang IndustrialPark, southwest of city of Tongling in central China's Anhui province. The power plant was initially built in 1951 and has a current installed capacity of 550 megawatts (MW), consisting of two 125-MW units owned by Anhui Wenergy and one 300-MW unit owned by Shenzhen Energy Group Company Limited (SHE:000027) (Guangdong, China).

In order to carry out the nation's policy on energy conservation and emission reduction, the 2007 of Anhui Wenergy shareholder's conference passed the Resolution to shut down five 125-MW power units in order to replace them with one 1,000-MW unit. In Phase IV of the Tongling Power Plant Expansion Project, the plant will be furnished with one 1,000-MW ultra-supercritical coal-fired unit together with flue gas desulfurization and denitration devices. Meanwhile, Anhui Wenergy will carry out desulfurization renovation for one-300 MW unit of the power plant and shutdown 500 MW of small thermal power units in the Anhui province. The project will be carried out by Tongling Wenergy Power Generation Company Limited, a joint company established by Anhui Wenergy (68.5%), Shenzhen Energy Group (26.2%), Shenzhen Nanshan Power Station Company Limited (SHE:200037) (Guangdong, China) (3.8%) and Tongling Municipal Construction Investment Corporation (Anhui, China) (1.5%). Total investment in the project will be about $608 million, including $122 million (20%) capital, which will be invested by the three shareholders in proportion to their holdings in the company. The rest of the investment will be funded by bank loans.

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