Shantou Topou Power Plant

concluded

Shantou Topou Plant is a 114-MW oil-fired power plant comprising ten 1.22-MW and eight 2.5-MW diesel generators. Shantou Changpu Power Development Co. Ltd., a Sino-foreign cooperative joint venture, own and operate the project. The joint venture was established in October 25, 1993 by Shantou Municipal Power Development Company, a PRC state-owned enterprise and Cheung Kong Hutchison Changpu Power Ltd, a subsidiary of Cheung Kong Infrastructure. CKI disposed of its share in the plant in 2002. The plant occupies a land area of 49,500 sq. meters, leased from the municipality for the joint venture term. The total project costs approximately $63 million. CKH Changpu invested 60% of the equity in cash in US dollars, while Shantou Power Development Invested 40% of the equity as an asset contribution consisting of diesel generators (including ten 1.22-kW diesel generators that commenced operation in 1992), buildings and facilities. The joint venture will operate the power plant until December 31, 2010. The fixed assets of the plant, as well as all US dollar reserve fund, will then belong to Shantou Power Development. The current assets of the plant will be distributed to the joint venture parties in accordance with their initial actual investments. If the CKH Changpu fails to recoup its investment, then the municipality company will make up for the short-fall. The joint venture has entered into a long term power purchase contract coterminuous with the joint-venture agreement. To secure the joint venture parties' recoupment of and return on their investment, Shantou Power Company has agreed to purchase all electricity generated by the plant and guarantees to offtake certain annual minimum quantities. The minimum offtake quantities for the years 1995 and 1996 were 464.9KWh and 420.6KWh, respectively. There is no operations and management contract and Shantou Power Development is responsible for fuel supply, maintaining all power generators and anciliary facilities of Topou Power Plant, and ensuring the plant can generate sufficient electricity to satisfy the annual minimum quantitities stipulated under the purchase agreement. The BOT period ended in 2010, and all assets were transferred to the government.