CKI Signed Agreement for RMB 6.8 Billion New Zhuhai Power Plant Units
1 October, 2007
Cheung Kong Infrastructure Holdings Limited ("CKI" or "the Group") signed an agreement with its Mainland partner to build two new power plant units ("Jinwan Phase 2 Power Plant Project") in Zhuhai. These two new units will have a total installed capacity of 2,000 MW. The total investment in the project is RMB 6.8 billion. Subsequent to the signing, application for concerned government approvals will be made.
Following the commissioning of two units earlier this year ("Jinwan Phase 1 Power Plant Project"), Jinwan Phase 2 Power Plant Project represents another new electricity investment for CKI. The Group holds a 45% stake in the project, while Guangdong Yudean Group Co. Ltd. ("Guangdong Yudean") and The Electric Development Group Co Ltd of Zhuhai Special Economic Zone ("Electric Development Group of Zhuhai SEZ") collectively hold the other 55% stake.
Jinwan Phase 2 Power Plant Project will have an annual electricity output of over 11 billion kWh. Once all government approvals have been obtained, construction programme will begin with operations expected to commence in 2010. Upon the completion, together with Jinwan Phase 1 Power Plant Project, the combined installed capacity of the Jinwan Power Plant will amount to 3,200 MW, and the annual electricity output will be over 18 billion kWh. The Jinwan Power Plant will be one of the largest coal-fired thermal power plants in Mainland China.
Against the backdrop of strong economic growth, Guangdong province has recorded a 13.4% increase in electricity consumption during the first half of 2007 as compared with the corresponding period of last year. Up to mid-September, peak loading in Guangdong province has registered 11 record highs. Shortage of electricity is tremendous.
Mr Deng An, Director of the Board/ General Manager of Guangdong Yudean, said, "The demand for electricity continues to outstrip supply. In Guangdong province, there is an electricity shortfall of around 5,000 MW. This summer, some power plants resorted to using the more costly oil-fired units to meet demand. As Guangdong and the Pearl River Delta region continue to record strong economic growth, electricity demand is expected to remain high. The Guangdong provincial government has asked electricity companies to speed up the development of new electricity projects. We are very pleased about the plans for the two new units. They will contribute in alleviating the electricity shortage, as well as in promoting the economic development of Zhuhai and the Pearl River Delta region."
Mr H L Kam, Group Managing Director of CKI, said, "Our power plant projects in Zhuhai have proven to be sound investments for CKI. Since the launch of Jinwan Phase 1 Power Plant Project in February 2007, operations have been smooth and immediate profit contribution has been generated. As at the end of September, the project has recorded an accumulated electricity output of 5 billion kWh. There is certainly great demand for electricity in Zhuhai and the Pearl River Delta region. In view of the situation, we plan to have the new units built as soon as possible to meet this surging demand, as well as to capitalize on the investment opportunities that stem from the rapid economic development of the area. We are confident of the prospects of our power plant investments in Zhuhai and it is expected that the new units will generate satisfactory contributions to the Group."
CKI commenced planning of its first power plant in Zhuhai in the '90s. The two units of the Zhuhai Power Plant were commissioned in 2000 and 2001 respectively. As electricity demand in Guangdong province continued to grow, the Group further expanded its energy investments in Zhuhai with a second power plant, Jinwan Power Plant. The two units of Jinwan Phase 1 Power Plant Project commenced operations earlier this year. Including the two new units of Jinwan Phase 2 Power Plant Project, CKI's entire power portfolio in Zhuhai will comprise six units at two power plants, with a total installed capacity of 4,600 MW and an annual electricity output of over 26 billion kWh.
As the Jinwan Phase 1 Power Plant Project is already in operation, Jinwan Phase 2 Power Plant Project will be able to share its common facilities to minimize investment costs and construction time, thereby enhancing cost efficiency.
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CKI is the largest publicly listed infrastructure company in Hong Kong with diversified investments in Energy Infrastructure, Transportation Infrastructure, Water Infrastructure and Infrastructure Related Business. Operating in Hong Kong, Mainland China, Australia, the United Kingdom and the Philippines, it is a leading player in the global infrastructure arena.
From left to right, Mr H L Kam, Group Managing Director of CKI; Mr Deng An, Director of the Board/ General Manager of Guangdong Yudean; and Mr Liang Xue Min, General Manager of Electric Development Group of Zhuhai SEZ, at the signing ceremony for Jinwan Phase 2 Power Plant Project.