Fujian Electric Meizhou Wan Phase 1

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Fujian Electric Meizhou Wan Phase 1 consists in the construction and operation of a 724MW coal power plant. The main sponsors are InterGen (70%), Lippo Group (25%) and Asian Development Bank (5%). The project will sell its electricity output to Fujian Electric Power Bureau. The total project cost was estimated around US$755 million. El Paso Energy International (now El Paso Corporation) acquired a 25% stake in the project from InterGen, which now owns 45% of the shares in the project company. In 2005 El Paso sold its power projects investment in China to GP China Limited, a subsidiary of Malaysian Genting Group. Unit #1 entered commercial operations in March 2001 and Unit #2 is scheduled for June 2001. The project reached financial closure in May 1998 with a US$190 million loan from the Asia Development Bank; a US$76 million term loan supported by extended political risk insurance from Spanish export credit agency Cesce; a US$53 million term loan supported by political and commercial risk insurance from French export credit agency Coface; a US$218 million commercial loan facility and US$30 million working capital facility from a syndicated led by Banque Paribas, Credit Swisse First Boston and Bank of America. As of November 2002, the sponsors were looking into refinancing the US$566.4m limited recourse facility raised in 1998 and were approaching domestic Chinese banks to replace the loan arranged by BA Asia, BNP Paribas, SCFB and UFJ Bank. The project ran into problems when the local Fujian government sought to lower the tariff rates to about Rmb 0.44 per kWh. The original tariffs agreed upon under the 20-year PPA are believed to be Rmb 0.56 per kwh or 6.7 US cents. None None