RNS Number:4520S
Zhejiang Southeast Elec Power Co Ld
25 November 2003


       Announcement of Zhejiang Southeast Electric Power Company Limited
      in relation to Phase II of the Expansion Project of its Subsidiary -
          Zhejiang Changxing Electric Power Limited Liability Company


Zhejiang Southeast Electric Power Company Limited ("the Company") and all the
members of the Board of Directors warrant the authenticity, accuracy and
completeness of the contents of this announcement and shall be jointly liable
for any false representations, misleading statements or material omissions
contained herein.



Zhejiang Changxing Electric Power Limited Liability Company ("Changxing Company
") is a subsidiary of the Company.  Pursuant to the resolutions of the Fifth
Meeting of the Second Board of Directors of Changxing Company, Changxing Company
will commence the construction work for the expansion of 2 x 300MW coal-fired
generation units. According to the relevant stipulations of the Stock Listing
Rules of the Shanghai Stock Exchange, the relevant matters are announced as
follows:



I.                    Particulars of Changxing Company



At present, the registered capital of Changxing Company amounts to RMB 0.61
billion yuan, the legal representative is Mr. Shou Desheng, and the business
scope is the production and sale of electric power and the relevant derived
production industry and supplementary industry.  Currently, 2 x 300MW coal-fired
generation units have been put into operation ("Changxing Phase I").



Changxing Company is a subsidiary of the Company and the Company has a 65%
shareholding in Changxing Company.



II.                 Particulars of the Changxing Company Phase II project



The Changxing Company Phase II Project ("Changxing Phase II") is a project under
which Changxing Company continues to expand 2 x 300MW coal-fired generation
units on the basis of the existing Changxing Phase I.  As an urgent power
construction project during the Tenth Five Year Plan period of Zhejiang
Province, construction work of Changxing Phase II is scheduled to commence
within the year so that the first generation unit will commence operation by the
end of 2005 and the second generation unit will commence operation by the end of
June 2006.



At present, the preparatory work of the preliminary stage of Changxing Phase II
is progressing rapidly.  On 16th September 2003, Zhejiang Provincial Development
and Planning Commission submitted the proposal on the project to the State
Development and Reform Commission by Document Zhe Ji Ji Chu (2003) No. 730.  On
30th September 2003, the feasibility study report on the project passed the
pre-examination.



According to the Feasibility Study Report on Changxing Phase II, the estimated
dynamic total investment of Changxing Phase II is RMB 2.585 billion yuan,
including project capital of approximately 520 million accounting for 20% of the
total investment. The required fund other than the capital will be provided by
way of bank loans.  Pursuant to the resolutions of the Fifth Meeting of the
Second Board of Directors of Changxing Company, the capital of Changxing Phase
II will be injected by way of capital increase by the shareholders in proportion
to their respective shareholdings upon the approval of the project.





III.               Reasons and advantages of the expansion project of Changxing
Phase II





1.      Currently, the contradiction of the shortage in electric power supply in
Zhejiang offers a relatively good prospect for the investment and construction
of power resources projects.  Changxing Phase I has realized an accumulated net
profit of RMB 129.54 million yuan during the first three quarters of this year
with relatively good economic benefits.  On such basis, the expansion project of
the Phase II project will enlarge its installed capacity and increase the
electricity generation revenues.





2.      Changxing is the electric power load centre of Zhejiang Province, and
the Phase II expansion project may satisfy the requirements of local economic
development and alleviate the intense situation of local electricity
consumption.





3.      The construction of Changxing Phase II may utilize the reserved site and
related facilities of Changxing Phase I, which is beneficial in shortening the
construction cycle and economize the investment.











Board of Directors

 Zhejiang Southeast Electric Power Company Limited

25th November 2003


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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