CLP Guangxi Fangchenggang Power Company

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CLP Guangxi Fangchenggang Power Co., Ltd. was established on a 70:30 equity basis between China Light and Power Ltd. (CLP) and state-owned Guangxi Water & Power Engineering (Group) Co. Ltd. for the development and management of Guangxi Fangchenggang Power station in Guangxi Zhuang Autonomous Region. First phase of the coal-fired power station, with a generating capacity of 1,200 MW (2 units with 600 MW each), had an investment of US$ 664.5 million (RMB 5.5 billion). It was the largest foreign investment power project in the Guangxi Province. The project was jointly undertaken by CLP Power Asia Ltd. (CLP Power Asia), a wholly-owned subsidiary of private power company, CLP, and Guangxi Water and Power Engineering (Group) Co, Ltd.(Guangxi Water and Power), a subsidiary of state-owned Guangxi Electric power Co., Ltd., in which CLP Power Asia took a 70% interest and Guangxi Water and Power took a 30% interest separately. A domestic banking consortium on August 31 2005 agreed to grant loans worth US$ 500.18 million (RMB 4.14 billion) to the project. This consortium consisted of the Industrial and Commercial Bank of China, the Agricultural Bank of China and Bank of China Ltd. The three banks respectively provided US$ 186.06 million (RMB 1.54 billion), US$ 157.06 million (RMB 1.3 billion) and US$ 157.06 million (RMB 1.3 billion) to the project. Commercial operation for the first unit was to begin in the 2nd half of 2007 while 2nd unit was to start in early 2008. The site was located at a new coastal development site in Fangchenggang city, 190 km south of Nanning. Upon commissioning, it was to meet the local demand for electricity, as well as supplementing the power demand in nearby provinces.