Zhabei Oil-Fired Power Plant

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This 400 MW project is located in the Zhabei district of Shanghai. The project consists of a residual fuel-fired simple-cycle gas turbine peak-load power plant. The project was developed jointly by General Electric Capital Corporation and Shanghai Municipal Electric Power Company (SMEPC). The project was financed through both equity and debt. Equity of US $73 million was provided by SMEPC (70%) and by GE Capital (30%). The sponsors also raised local currency debt equivalent to US $56 million. An additional US $124 million in US dollar debt was provided by a syndicate of international banks. The Zhabei project was the first power plant of its size in China to be financed on a non-recourse basis, with no guarantees provided by either the sponsors or the Chinese government. At the termination of the 17-year contract, full ownership of the plant is transferred to SMEPC. The financial statements of SMEPC were audited according to international accounting standards by Arthur Andersen prior to financing of the project. SMEPC has signed a PPA agreeing to purchase all of the output from the plant. None None