Tangshan Sithe Thermal Power Co. Ltd.

cancelled

The plant has a generating capacity of 100-MW (2x50-MW) and was to provide heat and electricity to the city of Tangshan, 154km east of Beijing. The two units entered service in 1997 and 1998 respectively. The power was sold under a 20-year PPA, while the thermal energy was sold to the municipal authorities. The coal was supplied from the Kailuan mine under a 20-year agreement. Project sponsors were Sithe China (60%) and Tangshan municipal government (40%), which provided US$45.5 million in equity. Sithe China's shareholders are Sithe Energies, Inc. (39%), AIG Asian Infrastructure Fund (30.5%), and Government of Singapore Investment Corp. (30.5%). Sithe Energies was in turn majority-owned by France's Vivendi Universal, with Japan's Marubeni Corp. holding a 29.5% stake. The remaining US$128.5 million was financed by syndicated 10 year loans. The deal was backed by a comprehensive security package, including strong letters of support from Hebei provincial government and Tangshan municipal government; an assignment of the insurance contracts between the borrower and People's Insurance Company of China; a termination agreement whereby the Tangshan local utility will purchase Sithe China's interest in the project in the event of fuel interruption, politilal unrest, or natural disasters; and a pledge of the borrower's operating contracts with Sithe China Operating Group Ltd. In March 2003, Sithe China sold it stake in the Tangshan plant, along with three other projects, to state-owned China Resources Power. None None