Work on the Pannan Power Plant, a joint-venture by Guangdong and Guizhou companies, will begin this month (Dec) in the southwest province.

The generation of the first 600,000 kilowatts from the plant is expected by the end of 2006 at the earliest. The power will amount to 3.6 million kilowatts, according to the Nanfang Daily which did not give the expected date of completion.

A total of 8.32 billion yuan (US$1 billion) will be spent on construction work with a Guangdong power investment company holding 55 percent of the plant's shares with 45 percent owned by a Guizhou power company.

It is among the second group of powers plants being built to transmit electricity to power-hungry Guangdong. The two provinces signed an agreement in 2000.

These projects are part of China's plan to turn the rich water and coal resources in the economically backward western region into electricity to support economic development in eastern and southern coastal areas.

Although Guangdong has increased its construction of power plants in recent years, the province was still 1.5 million kilowatts in deficit during the second quarter this year.

Three bigger nuclear power plants will be built in Shenzhen, Yangjiang and Taishan over the next 20 years.

Editor: Donald