An American firm will join a Chinese group company to make a joint investment of about 700 million US dollars in a large power plant burning natural gas in northwest China, it was announced here recently.
The Chinese and the US partners will cooperate for 20 years in the natural gas power project located in Jingbian County of Shaanxi Province.
The first phase of construction of the project will start soon and the whole project will be undertaken in two stages.
Of the total investment, the Chinese partner, the China Zhenglian Sanbei Group Co. Ltd., accounts for 15 percent while the US partner, Meiya Power Company, accounts for 85 percent.
Registered in Hong Kong and controlled by US corporation, Meiya Power Company has invested in seven power projects in China with a total investment of 220 million US dollars.
Colin S. Tam, chairman and chief executive officer of Meiya, said that his company is confident of China’s drive to develop its western region.
Tam said that with economic recovery in Asia and the pace of China’s economy, power consumption will increase. He said that his company will invest more than 800 million yuan in high-tech project in the coming few years.
Li Guangquan, general manager of China Zhenglian Sanbei Group Co. Ltd., said that China has formulated favorable policies for foreign investors. The project will benefit local economic development, Li added.