 |
IFC Provides US$25 Million in Financing to China's Power Sector
The International Finance Corporation (IFC) announced on Thursday that it has signed an agreement to provide US$25 million in financing to Peak Pacific Investment Corporation, Ltd. (Peak Pacific) to help fund the company's investments in combined heat and power (CHP) plants in China.
CHP plants generate power and steam from the same operation to improve overall plant efficiency. IFC's investment will support Peak Pacific's development of new plants and the acquisition and rehabilitation of existing Chinese CHP plants, which will result in improved environmental performance, plant efficiency, and reliability, said IFC, part of the World Bank Group.
Peak Pacific is majority-owned by Alliant Energy International, a wholly-owned subsidiary of Alliant Energy Corporation, a Wisconsin, US-based power utility with significant experience in operating CHP plants. The company currently owns five plants in China and is assessing additional acquisitions.
China is forecast as the largest growth market for electric power generation over the next 10 years, the IFC said. Peak Pacific is focusing its activities in areas where there is need for locally produced power and in cities and towns where process steam can be used by industries.
"This project will help demonstrate that well-managed CHP plants that meet international emission standards can be financially viable and play an important role in power generation in China, thus setting a benchmark for other operators," said Francisco Tourreilles, director of IFC's Power Department.
"We believe that it will help attract additional private sector investment to CHP plants in China," he added.
In This Section
|