China Power seals RMB146.80 million connected EPC contract for Chayuan desulfurisation system

China Power International Development Limited announced that indirect subsidiaries Yuanda Engineering and Yuanda Waterworks have secured an engineering-procurement-construction (EPC) contract valued at RMB146.80 million (approximately HK$168.74 million) with Chayuan Power, an affiliated company under ultimate parent State Power Investment Corporation (SPIC).

Under the agreement, the Yuanda consortium will design, procure, construct, install and commission a wet flue-gas desulphurisation system—together with zero-discharge wastewater treatment—for Chayuan Power’s 660 MW ultra-supercritical coal-fired replacement project in Guizhou Province. The scope also covers trial runs, performance testing and a 12-month defect-liability period.

Fee structure: • Survey & design: RMB2.25 million • Construction & installation: RMB81.33 million • Equipment procurement: RMB57.14 million • Health, safety & environmental measures: RMB2.09 million • Commissioning: RMB2.00 million • Contingency estimate: RMB2.00 million

Payment terms include an interest-free prepayment—10 % of survey, design, construction and installation fees, and 50 % of health, safety and environmental fees—followed by progress-based instalments. Retentions of 3 % on construction, 10 % on equipment procurement, and 5 % on design and commissioning will be released after quality-assurance milestones.

Pricing was determined through an open public tender on national procurement platforms and benchmarked against comparable desulphurisation projects.

Because Chayuan Power is an indirect non-wholly owned subsidiary of SPIC, the transaction is classified as a connected transaction. The highest applicable percentage ratio under Hong Kong Listing Rule 14.07 exceeds 0.1 % but is below 5 %, triggering announcement and reporting obligations without requiring independent shareholders’ approval.

Management states the project aligns with China Power’s strategy to expand environmental-protection services amid tightening emissions standards for coal-fired power generation in China.