Siemens signs deal for power plant project

Alfred Lee, The China Post

Siemens Taiwan yesterday signed an agreement with a private company in Taiwan to set up a 460,000 KW capacity power plant in Taoyuan.

The power plant, constructed as an alternative for the 4th nuclear power plant, will start operation by mid 2003. It will be the first power plant to go into operation after the third wave of approvals since the government suspended construction of the 4th nuclear power plant. The plant will be installed with two gas turbine, two steam turbines, and three power generation units.

Because the agreement includes non-disclosure clauses, the exact investment was not revealed. However, industry sources estimate that the power plant would cost NT$12 billion to build.

Chinese Petroleum Corp. (CPC) is the biggest shareholder of the private power company, holding 45 percent of the equity. CTCI Corp., which is an engineering consultancy specializing in power plant design, holds 20 percent of the power company, whilst a Hong Kong power company owns a further 35 percent. 70 percent of the total investment will be provided by bank loans.

The power plant will be set up in CPC’s unused land lot at its Taoyuan oil refinery. CPC will supply the natural gas needed for power generation, with CTCI responsible for power plant design, and the Hong Kong shareholder providing power generation technology.

The chairman and top management of the new power plant are assigned by CPC.