Guangdong Electric acquires power plant

China�s economic power house of Guangdong province in southern China has begun a campaign to privatize power plants in the province. In the latest acquisition, Guangdong Electric Power Development Co. Ltd. (GED), purchased a power plant for 1.5 billion yuan from the government-owned Guandong Power Bureau in mid-October.


BEIJING�China�s economic power house of Guangdong province in southern China has begun a campaign to privatize power plants in the province.

The Guangdong government is encouraging the private sector to acquire stakes in state-owned power plants. The move is intended to diversify the ownership of provincial infrastructure and prepare for a further reform, highlighting the separation of power production and power transmission.

In the latest acquisition, Guangdong Electric Power Development Co. Ltd. (GED), purchased a power plant for 1.5 billion yuan from the government-owned Guandong Power Bureau in mid-October.

The plant, Phase Two of Shajiao Power Plant A, has two 300 Mw thermal power generators. GED already owns and operates Phase One of Shajiao Power Plant A, which has three 200 Mw generators. It is first of many such purchases, and the company is in talks for more purchases in the province, sources said.

Established in November 1999, GED is one of the largest publicly traded enterprises in the province. Its five largest "A" series shareholders include Guangdong Electric Power Holding Co., Guangdong Electric Power Development Co., Guangdong Trust & Investment Corp. of the Construction Bank of China, Guangdong International Trust & Investment Co., and Guangdong Development Bank. Its "B" series shares are reserved for foreign investors.

The company's installed capacity has increased to more than 1,750 Mw. For the period ended June 30, 2000, net profit rose to 476.52 million yuan or .370 yuan/share, up from 456.95 million yuan or .355 yuan/share in the year earlier period.

The company said it expected to improve productivity through cost controls and other measures in the second half of the year, while its continues its expansion and diversification program.

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