Kepco signs first Chinese power plant deal

22 August 2003 – South Korean power engineering group Korea Electric Power Corp (Kepco) said Thursday it had won its first order to build a power plant for a Chinese province.

Kepco is to build, own and operate the plant, which was ordered by Wuzhy No.1 Thermal Electric Power Co in China’s Henan province. The 50 MW coal fired plant will be operated by Kepco for a 20-year period and construction is set to begin in December and aims to be complete by October 2005.

The cost of the project is estimated at about $65m, comprising about $20m in paid-in-capital and $45m in loans. Kepco will finance 70 per cent of the paid-in-capital, while Wuzhy will provide the rest and also secure all the required loans, Kepco said.

The firm expects to earn about $3.3m on average in annual dividends from the operation.

The Korean firm said in January it planned to build two coal-fired power plants in Luoyang in north central China, but it has not signed a contract.