(February 14, 2006) The company building China’s controversial Three Gorges Dam, the world’s biggest hydroelectric project, is gearing up to tap domestic and overseas capital to fund construction, says a source close to the firm

HONG KONG/SHENZHEN – The company building China’s controversial Three Gorges Dam, the world’s biggest hydroelectric project, is gearing up to tap domestic and overseas capital to fund construction, a source close to the firm said yesterday. China Yangtze Three Gorges Project Development Corp plans to set up a hydropower joint venture with domestic and overseas counterparts and let the venture issue Chinese currency A-shares one year after the formation of the unit at the earliest, the source told Reuters. CITIC Securities has been appointed the lead underwriter, said the source, who declined to be identified. Yangtze Three Gorges plans to establish a shareholding company by the end of June for the listing, and will invite foreign and domestic strategic investors to take about 10 percent in that company, he said. Hong Kong’s Wen Wei Po newspaper reported yesterday Yangtze Three Gorges Vice President Li Yongan was in Hong Kong to talk to several local firms, including Hong Kong utility CLP Holdings and China-backed conglomerate Citic Pacific on possible cooperation. The aim is for CITIC Pacific to buy about one percent of the shareholding company, which will be built around the core assets of the Yangtze’s Gezhouba power plant, the source said. Citic Pacific declined comment.

Reuters News Service, February 14, 2006