HONG KONG, Feb. 16, 2001 Fujian Pacific Electric Company Limited today dedicated Unit I of the 724 MW Meizhou Wan power facility in a ceremony attended by the project’s sponsors, lenders, and local, provincial and national officials. Meizhou Wan is China’s first fully foreign-owned power plant approved by the State Council and the State Development Planning Commission. The facility is located in China’s Fujian Province.
Fujian Pacific Electric Company Limited shareholders include InterGen (45%), Lippo China Resources (25%), El Paso Energy (24.8%) and the Asian Development Bank (5.2%). The U.S. $700 million plus facility was non-recourse financed on May 11, 1998. Meizhou Wan is the first international power station in China to receive both direct equity investment and debt financing from the Asian Development Bank.
The 724 MW power plant consists of two 362 MW units on a site near the village of Talin on the southwest corner of the Zhongmen Peninsula. The facility will meet strict environmental standards, utilizing pulverized low-sulfur Indonesian coal for fuel and employing low NOx burners and electrostatic precipitators to control emissions. The project’s net electrical output will be sold to the Fujian Provincial Electric Power Corporation under a 20-year power purchase agreement. The Project has received two prestigious international awards for excellence. The International Finance Review named it the Asian Project Finance Loan of the Year in 1998. The Meizhou Wan Project was named the Power Deal of the Year in 1998 by Project Finance International.
“Meizhou Wan has signaled the start of InterGen’s long term commitment to China. With China’s interest in exploring increased use of natural gas for electricity, we fully expect additional investment opportunities to surface,” said Carlos Riva, President and CEO of InterGen.
“The success of Meizhou Wan Project demonstrates that investor risks can be mitigated with strong partners and good support from the Government. The project will serve as a model to encourage other international companies to invest in China’s power sector,” said Bruce Murray, ADB’s Resident Representative in China.
InterGen is a global power generation firm. The Company is operating or building a total of seventeen power stations representing 12,230 MW. It also has secured contracts, bid awards or governmental mandates for power stations representing an additional 5,360 MW. The Company has projects operating and under construction and/or mandate in the United Kingdom, the Philippines, Colombia, Mexico, China, Egypt, Turkey, Brazil, Australia and the United States and is developing projects across the globe. InterGen is a Shell-Bechtel venture.
Lippo China Resources Limited is a publicly-traded company of the Lippo Group listed on the Hong Kong Stock Exchange. It is involved in various business activities including banking and financial services, property development, insurance and investments in Hong Kong and the PRC.
El Paso Corporation, the largest and most broadly based natural gas company in the world, spans the energy value chain from wellhead to electron. With an enterprise value in excess of $50 billion, El Paso is a leader in every phase of the natural gas industry. The company owns and operates a significant portion of the North American natural gas delivery grid, operates the fastest growing, most sophisticated energy merchant group, and is the nation’s third largest natural gas producer. El Paso, a leader in real options valuation and risk management techniques, is focused on maximizing shareholder value, transforming existing markets, and speeding the development of new markets.
The Asian Development Bank is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. Established in 1966, the Bank is now owned by 59 members including the People’s Republic of China and the majority of the shares are owned by Asian countries. It provides financial assistance to highly selected private sector projects without government guarantee. In 2000, Asiaweek voted the ADB as the Asia Pacific Region’s premier development agency over the past 25 years.
ADB has lent $88 billion in public and private sector loans involving over 1,600 projects. ADB’s cumulative lending to China exceeded $10 billion in 2000. In addition to providing project financing, particularly for infrastructure projects, ADB is helping China create an improved business environment, strengthen its legal/regulatory system, improve environmental management and accelerate development in the poor central and western provinces.