Power Contracts Bring
CKI Investment in Henan to Over RMB 600 Million
- Strengthens CKI's Presence in PRC Central/Western Region
25 October, 1997 - Hong Kong
Cheung Kong Infrastructure Holdings Limited (CKI) has increased its investment in Henan Province to over RMB 600 million with the signing of contracts to invest in power plants in Qinyang City. The plants represent a total investment of RMB 489 million. CKI will be responsible for 49% of the equity investment in each project, for a total of RMB 239 million; and the joint venture period will last for 20 years.
The contracts were signed in regards to one 55 MW plant which began operations in early 1997, and another 55 MW plant which is scheduled for completion by the end of this year.
These latest plants differ from CKI's previous power investments, whose output mainly went to local power grids. Electricity produced from these power plants will be primarily sold directly to the joint venture partner in these projects, the Qinyang Aluminium Electricity Group Company.
The Qinyang Aluminium Electricity Group Company is mainly engaged in the manufacture of aluminium ingots - a process which requires a great deal of electricity; thus ensuring a large and steady source of demand for these dedicated power plants.
According to Mr H L Kam, Group Managing Director of Cheung Kong Infrastructure Holdings Limited, "With the addition of these enterprise-dedicated plants in Henan Province, CKI's power portfolio has increased to 5415 MW, ranging from smaller power plants to mega-sized thermal power plants, including coal-fired, oil-fired and heat & electricity co-generation plants, geographically spread from Hong Kong and Guangdong in the South to Henan in the Central/Western region and Liaoning in the North."
This is CKI's second batch of contract signings in Henan Province, following road investments made in Zhumadian in June. Henan Province is located in the Central/Western region of the PRC, one of the regions targeted for accelerated economic development.
Home to over 50% of China's population and rich in important natural resources, the Central/Western region has recently made strong initiatives to attract foreign investment. Henan Province is one of the most strategically important provinces in the Central/Western region, due to its central geographic location and large population base.
Mr Kam continued, "These latest power plants in Henan will help to further strengthen CKI's total investments in the Central/Western region of the PRC. At present, we have quite a few projects under negotiation in the region, and expect more contracts to materialise soon."
"This has been a very active period for CKI. In the past 4 months, we have signed road, water and power contracts in 4 different provinces, for a total investment of RMB 1.8 billion," concluded Mr Kam. (Note: please see attached table)
CKI Project Signings (June - September 1997)
|June||Hebei||Tangshan-Jintang Port Expressway and Tangshan-Tangle Road||663|
|June||Henan||Zhumadian Sections of National Highway 107||383|
|July||Liaoning||Fushun Water Plants||200|
|July||Liaoning||Shenyang Shifosi Water Plants||200|
|Aug.||Guangdong||Jiangmen Xiejiang Water Plant||107|
|Sept.||Henan||Qinyang Power Plants||239|