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Construction of a thermal power station, jointly funded by Guangdong and Guizhou provinces, is expected to commence in Xiangshui Town in southwestern Guizhou within the month.

Guangdong has a 55 per cent stake worth 8.32 billion yuan (about US$1 billion) while Guizhou accounts for the remaining 45 per cent.

Covering an area of more than 60 mu (4 hectares), the power station is designed to reach an installed capacity of 3.6 million kilowatts.

It has six generating units with an installed capacity of 600,000 kilowatts each, of which the first is expected to start operation before the end of 2006.

It is the biggest electricity project that Guangdong is involved in outside the province - it buys a lot of power from China's southwestern areas annually to feed its booming economy.

In another development, the first generating unit of Guangdong Taishan Thermal Power Plant is expected to start operation later this month, while the second will come on stream in the first half of next year.

Construction of the plant in the port city of Taishan in western Guangdong started in 2001; and consists of five generating units with an installed capacity of 600,000 kilowatts each in its first phase.

The second phase includes another six generating units with an installed capacity of one million kilowatts each.

The whole power plant has been designed to reach a total installed capacity of 9 million kilowatts.

The power plant is expected to help ease Guangdong's electricity pressure when it comes on line, according to Guo Wei, mayor of Taishan, who said the city would be able to attract petrochemical and metallurgical projects that rely a lot on power.

Construction of the first two units alone costs 6.48 billion yuan (US$780.72 million); and the whole project is estimated to cost more than 30 billion yuan (US$3.614 million).

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