China Resources Power Holdings Co. Ltd. announced it plans to spend HK$555.7 million (US$71.2 million) to buy stakes in two power plants in China, including its first hydropower project.
The fast-growing small power provider said it would exercise rights to buy a 65 percent stake in its first hydropower plant, the 210-MW Yunpeng project in southwestern Yunnan Province, for HK$119.22 million. It also will acquire 55 percent of Fuyang’s 640-MW coal-fired plant in eastern Anhui Province for HK$436.48 million.
Although China Resources is a small player, it is offering fast growth to investors by aiming to boost its generating capacity to 7,294 MW this year and 8,494 MW in 2007, from 4,940 in 2005.
The Yunpeng project has three 70-MW turbine-generators, which are expected to commence commercial operation in the fourth quarter of this year.
China Resources said it is buying the interests in the two power plants from its substantial shareholder. It said it intends to buy the remaining stakes in the two plants, if the opportunity arises.