President of the US-based Aes Orient Inc. William Ruccius recently held discussions with concerned departments of Qinghai Province on financing a hydropower station on the upper reaches of the Yellow River.

The move indicated that the Chinese government has allowed foreign investors to solely finance large and medium-sized hydropower stations in the country.

The Aes TB Power Company Limited, which is jointly funded by the Aes Orient Inc and the Hong Kong-based Truf Busy Group Limited, has the intention to solely finance the Zhigangkala Hydropower Station, which is to be located at the juncture of Jianzha and Hualong counties.

The station will be the first medium-sized station solely funded by a foreign investor and also the largest foreign-funded project of Qinghai Province.

The station which will cost 1.4 billion yuan will have an generating capacity of 192,000 kilowatts. It is only seven kilometers away from the Lijiaxia Hydropower Station on the upper reaches of the Yellow river.

The province's acting governor Zhao Leji said his government will offer preferential policies for overseas investment in line with the central government's move to develop central and western parts of China during a meeting with William Ruccius. (Xinhua)