CHINA RAISES ENERGY CAPITAL BY SELLING PART OF POWER STATION

CHINA RAISES ENERGY CAPITAL BY SELLING PART OF POWER STATION

China for the first time has sold part of a state-owned power station to a foreign company to raise badly needed capital for its energy sector, Xinhua news agency said Wednesday.

State-owned China Venturetech Investment Corp. and Goldman Sachs (Asia) Ltd. paid $180 million for a 30 percent share of a power plant in Zhouxian county, eastern Shandong province, the agency said.The two would run the plant, which has a generating capacity of 1.2 million kilowatts, through a new corporation jointly with the power corporation of Shandong province and Shandong International Trust and Investment Corp., the agency said.

It said another $180 million in foreign loans would be sought from international monetary institutions for joint financing of power construction in Shandong.

The agency quoted Shi Dazhen, minister of power, as saying this was the biggest project of its kind using a shareholding system with Chinese and foreign partners.

Mr. Shi said China welcomed foreign investment to make up for a shortage of capital and help expand China's energy output.

Official figures released Tuesday show China's energy output in the first nine months of this year rose at a much slower rate than the economy, exacerbating power shortages.