UTILITIES group Sembcorp Industries has formed a joint venture (JV) to invest in a power plant project in Chongqing, in a bid to grow its foothold in China.
Sembcorp has injected equity worth around 925 million yuan or approximately S$202 million for a 49 per cent stake in the JV, a sum financed by internal funds, it said in a Singapore Exchange filing on Wednesday morning.
Chongqing Songzao Coal and Power, a unit of Chongqing Energy Investment Group, owns the remaining 51 per cent stake.
The JV, called Chongqing Songzao Sembcorp Electric Power, operates an existing 300-megawatt coal-fired power plant and is building an adjacent 1,320-megawatt coal-fired power plant in Chongqing's Qijiang District, Anwen Town.
Sembcorp said the total investment value of the two power plants will be around 6 billion yuan or S$1.3 billion, financed by a combination of equity and on-shore long-term financing.