Shunde De Sheng Power Plant Co.

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This 273.5-MW power plant went into operation in October 1995 to supply commercial and industrial users in and around the city of Shunde. Annual electricity generation is 1.5billion kWh. The joint venture company was originally formed by Talent Classic Enterprises Ltd. (70%), a subsidiary of Richfirm Industries (Holding) Ltd., and Shunde Electric Development Co. (SEDC) (30%); and equity was committed in April 1993. On January 22, 1997, New World Infrastructure acquired a 60% stake from Talent Classic for $51.38 million. Talent Classic's remaining 10% went to SEDC and the new joint venture period was set at 20 years - expiring in 2017. The total project cost of $254.7 million was raised by equity capital ($86.23 million), a syndicated bank loan ($168 million), and other borrowings of $470,000. In November 1995, Shunde Electric Power Group Co. (SEPGC) entered into an agreement with Shunde De Sheng Power Plant Co. to undertake the operation of the power plant until October 2000 and pay an annual rent fee to Shunde De Sheng Power Plant Co. The rental fee for 1997 amounts to $41.5 million and will increase annually to $52 million in 2000. In addition, SEPGC has agreed to enter into an offtake contract with Shunde De Sheng Power Plant to purchase 1.4 billion kWh/year of electricity for the 4th to 10th year and 1.3 billion kWh/year for the remaining joint venture period. None None