(ChinaOilWeb,Sept 27, 2006) Huadian Power International Corp. (1071.HK) said Wednesday it agreed to buy a majority stake in a coal-fired power project in eastern China from its parent for CNY25.4 million, to further boost its generating capacity.

Huadian Power, the third-largest Hong Kong-listed Chinese power producer by capacity, said it will buy the 95% stake in Anhui Huadian Wuhu Power Co. held by its unlisted parent China Huadian Corp.

Anhui Huadian is now building the first phase of the plant, which will consist of two 660-megawatt ultra-super critical thermal power generating units. The company expects the plant to start operations in 2008.

Huadian Power, which is also listed on the Shanghai Stock Exchange, is 48.8%-owned by its parent.

Before the deal was struck, Huadian Power had 600 MW of capacity in Anhui province, or 6% of its total capacity of 10,135 MW.

Deutsche Bank AG (DB) said in a report Wednesday the Anhui deal "will further entrench Huadian as the fastest growing (power producer)." The brokerage estimates Huadian Power's capacity to grow at 31% annually between 2005 and 2008, outpacing the growth rates of its peers of 10% to 23%.  

source:ChinaOilWeb
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