Washington, D.C., August 23, 2001—
The International Finance Corporation has signed an agreement to provide US$25 million in financing to Peak Pacific Investment Corporation, Ltd. (Peak Pacific) to help fund the company’s investments in combined heat and power (CHP) plants in China. This is IFC’s first investment in the Chinese power sector.
CHP plants generate power and steam from the same operation to improve overall plant efficiency. IFC’s investment will support Peak Pacific’s development of new plants and the acquisition and rehabilitation of existing Chinese CHP plants, which will result in improved environmental performance, plant efficiency, and reliability. Peak Pacific is focusing its activities in areas where there is need for locally produced power and in cities and towns where process steam can be used by industries.
China is forecasted as the largest growth market for electric power generation over the next 10 years. CHP plants will continue to play an important role in this expansion, as they can generate electricity and, at the same time, provide small towns and cities in China with central heating/process steam for factories in a clean and efficient manner.
Peak Pacific is majority-owned by Alliant Energy International, a wholly-owned subsidiary of Alliant Energy Corporation (
www.alliantenergy.com
), a Wisconsin, U.S.-based power utility with significant experience in operating CHP plants. Other significant investors in Peak Pacific are the John Hancock Life Insurance Company and Energy Investors Fund Group. Peak Pacific currently owns five plants in China and is assessing additional acquisitions.
The loan agreement was signed in Washington, D.C. on August 23 by John Peterson, President, Alliant Energy International and Joel Schmidt, Managing Director for China, Alliant Energy International, who are both directors of Peak Pacific. Francisco Tourreilles, Director of IFC’s Power Department, signed on behalf of IFC.
Mr. Tourreilles said, “This project will help demonstrate that well-managed CHP plants that meet international emission standards can be financially viable and play an important role in power generation in China, thus setting a benchmark for other operators. We believe that it will help attract additional private sector investment to CHP plants in China.”
Mr. Peterson added, “Alliant Energy International will help China’s power sector by continuing to develop new and rehabilitated CHP plants that supply low-cost power. The project will also reduce the level of air pollution by providing cost-effective steam inputs to industrial enterprises.”
The mission of IFC (
www.ifc.org
), part of the World Bank Group, is to promote sustainable private sector investment in developing countries as a way to reduce poverty and improve people's lives. IFC finances private sector investments in emerging markets, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.
