Hanfeng Power Plant

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The plant has a generating capacity of 1,320-MW. It is currently under construction and is expected to be completed by 2000. Transfer at the end of the 20 year operation period is free; equity is recovered during the operation period. The joint venture company was formed between Siemens Power Development Hanfeng GmbH (40%), state owned utility North China Power Group (30%), Hebei Construction Investment Corp. (20%), and Hebei Electric Power Co. (10%). The project is being developed without central government guarantees and will be financed by local and foreign bank loans, export credits, and a 25% equity component. The $311 million export credt was provided by Kreditanstalt fuer Wiederaufbau ($241million) and $70 million by Spanish banks. KFW, Banesto provided the $100 million commercial loan, and local banks provided $391 million loan. Germany's HEW acquired a 16% stake in the project from Siemens in 1998. HEW was subsequently acquired by Vattenfall of Sweden . China Huaneng Group acquired Hebei Power's 40% stake in 2003 and in April 2004 agreed to sell the stake to Huaneng Power International at an unspecified time in the future. Jan. 27, 2005 - (due to spikes in the price of coal) Vattenfall of Sweden and Siemens Power Generation of Germany have sold their respective 16% and 24% stakes in the 1,320-MW Hanfeng coal-fired plant in Hebei Province, China, to investors, including China Huaneng Group and the state-controlled investment holding company China International Trust and Investment Corp. None