Nanyang General Light Electric Co. Ltd.

cancelled

The Nanyang City power plant had a generating capacity of 250-MW (2x125-MW). Construction began in early 1997 with completion of the first unit scheduled for mid-1999 and completion of the second unit a further 5 months later. The owning and operating joint venture was formed in September 1996 between AEP Pushan Power Ltd. (70%), which is a subsidiary of American Electric Power Resources International Ltd. (AEP), State-owned Henan Electric Power Development Co. (15%), which is a subsidiary of Henan Electric Power Co., and Nanyang Municipal Financial Development Co.(15%), which is affiliated with Nanyang City. The project was entirely equity financed. Equity was committed in April 1997. In Jun. 1999, commercial operation of the power plant commenced. In March of 2004, AEP's management made the decision to change their business strategy, which involved leaving China completely. The decision to sell the plant was also attributed to a spike in coal prices and the lack of commensurate tariff increases. AEP sold its 70% interest in Nanyang General Light Electric Company Limited to Henan Power for US$34.5 million. None None