China's first 100% foreign equity power plant project

Conference · Wed Jul 01 04:00:00 EDT 1998

OSTI ID:20050578

Manguen, Y

GEC ALSTHOM has acquired significant experience as an investor with large equity participating in private infrastructure projects. GEC ALSTHOM secured under a joint-venture with EDF the contract to design, finance, build, own, operate and transfer after 18 years the first 100 percent foreign equity power plant project in China, the 700 MW LAIBIN B project, after international competitive bidding. The total project cost amounts to 650 MUSD and the security package is complex and inventive. For the Chinese Government, the project constitutes a true scale test before finalizing the Act setting the legal framework for all future BOT projects in the country. The project, most notably, has been structured around commercial and foreign exchange obligations by the Regional Government but without any financial guarantee from it, nor from the Central Government nor from the State Bank of China, none of them being liable for the eventual reimbursement at the loans. Regarding political risks, COFACF has accepted to provide a cover to lenders against simply a general Letter of Support to the project by the Chinese authorities.

• Research Organization: Electricite de France (FR)
• OSTI ID: 20050578
• Report Number(s): CONF-971214--
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
CHINA
FINANCING
INTERNATIONAL AGREEMENTS
LEGAL ASPECTS
POWER PLANTS