China`s first true IPP
No guarantees - that`s what the Chinese government has been telling potential infrastructure investors lately. One recent power plant financing may show the way to financing without guarantees from the Chinese government, export credit agencies or multilateral lenders. {open_quotes}Financing without government guarantees is less of a financing strategy but rather the reality in China,{close_quotes} says Jack Su, assistant vice president and counsel for Sithe China Holdings Ltd. Sithe China is 39 percent owned by Sithe Energies of New York, 30.5 percent by AIG Asian Infrastructure Fund and 30.5 percent by the Government of Singapore Investment Corp. Sithe`s 2 X 50 MW coal-fired cogeneration plant in Tangshan Municipality, Hebei province, was the first independent power project to proceed in the country without government, multilateral lender or credit agency guarantees. The deal, which was signed in Beijing last October, could lead project financing in China to a level where project risks can be borne internally, without recourse to either sovereign guarantors or export credit agencies. Project backers believe that it is more than just a one-off, but rather a first for truly independent power production in China.
- OSTI ID:
- 577459
- Journal Information:
- Independent Energy, Vol. 27, Issue 5; Other Information: PBD: Jun 1997
- Country of Publication:
- United States
- Language:
- English
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