Signing of PPP agreement for 2 million tons of coal-to-oil production project in Guizhou worth 7 billion yuan

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Signing of PPP Project Agreement for 2 Million Tons of Coal-to-Oil Production in Guizhou Worth 7 Billion Yuan / Author/Source: Date: 12-14-2016 Clicks: 20 On December 9, Guizhou Yufu Energy Development Co., Ltd., in partnership with Zhongheng Putai (Beijing) Investment Fund Management Co., Ltd., signed tripartite strategic cooperation agreements with China Energy Engineering Group Guangxi Hydropower Engineering Bureau Co., Ltd. and CCCC First Highway Engineering Bureau Co., Ltd. regarding the PPP project for the infrastructure development of the coal-and-power integration industrial base in Nayong County. The signing of this agreement lays the groundwork for the commencement of construction of Guizhou’s 2 million tons per year coal-based clean fuel project. This tripartite strategic cooperation adopts the PPP model. Under the cooperation agreement, the construction of infrastructure for the coal-electricity integrated industrial base in Nayong County, Bijie City, Guizhou Province will be carried out and completed, as well as the development of site preparation works, slopes, roads, and the area in front of the plant for the coal-based clean fuel project, along with the construction of other projects within Guizhou Province. The coal indirect liquefaction oil production project in Bijie, Guizhou, received approval in April 2014, in the form of a **reply from the General Office of the National Development and Reform Commission granting consent for the initiation of preliminary work on the project. The project is located in Nayong County, with an annual production capacity of 6 million tons of oil products and related chemical products. The total investment amounts to 100 billion yuan, making it the largest coal-to-oil project planned to date. The project will be constructed in two phases. The first phase of the 2 million tons per year coal-to-oil project is planned to require an investment of 34 billion yuan. According to the plan, during the initial phase of development of the coal-electricity-chemical integration industrial base in Nayong County, Guizhou, emphasis will be placed on building a coal-to-oil project with an annual production capacity of 2 million tons. In the medium term, another coal-to-oil project with a capacity of 2 million tons per year will be built, alongside the development of a coal-to-ethylene glycol project with a capacity of 300,000 tons per year. The industrial base is located in Shabao Township and Zhaile Township of Nayong County, with a planned total area of 22.21 square kilometers. Guizhou Yufu Energy Development Co., Ltd. was established in August 2008. It is a company with a mixed ownership structure, founded with the approval of the Chongqing People’s Government and the Chongqing State-owned Assets Supervision and Administration Commission, by Chongqing Yufu Asset Management Group Co., Ltd., together with five other companies including Zhongke Synthetic Oil Technology Co., Ltd., which holds independent intellectual property rights, and Sichuan Hanwei Xineneng Industry Co., Ltd. Guangxi Hydropower is an important subsidiary of China Energy Engineering Group Co., Ltd. It is mainly engaged in the construction of hydropower, thermal power, road and bridge projects, industrial and civil buildings, municipal projects, foundation treatment, power transmission and distribution facilities, as well as various other business areas such as the installation of mechanical and electrical equipment, metal structure fabrication, hydropower investment, and real estate development. To date, the company has undertaken a number of large and medium-sized water and thermal power projects, as well as new energy projects. Zhongheng Putai (Beijing) Investment Fund Management Co., Ltd. was established by Guizhou Yufu Energy Development Co., Ltd., along with shareholders such as Sichuan Hanwei Xinen Energy Industry Co., Ltd. and Beijing Saideli Technology Co., Ltd. It is a private equity fund registered with the China Securities Investment Fund Association; its registered capital amounts to 50 million RMB. The company is engaged in activities related to asset management, as well as the fundraising, investment, management, and withdrawal of industrial investment funds. Jiang Congyue, Vice Mayor of Bijie City, and Wang Xingming, Deputy Secretary-General ； Zheng Dawei, Chairman of Guizhou Yufu Company; Liu Zhang, Vice Chairman; Rao Chongxin, Managing Director; Liu Juncai, Director ； Zheng Jianlin, Chairman of China Energy Engineering Group Guangxi Hydropower Engineering Bureau, and Huang Yanji, Deputy General Manager ； Wang Qiusheng, Deputy General Manager of CCCC First Public Works Bureau; Chen Jinhai, General Manager of CCCC Group’s Guizhou headquarters; Yan Guangdong, General Manager of CCCC First Public Works Bureau’s Beijing Construction Branch ； Shen Junying, chairman of Zhongheng Putai, Zheng Yuantong, director, Pu Qingsong, executive vice president, and Gao Liangchu* attended the cooperation signing ceremony.