COASTAL SUBSIDIARY CLOSES JOINT-VENTURE CONTRACT TO BUILD AND OPERATE POWER PLANT IN CHINA.HOUSTON--(BUSINESS WIRE)--May 9, 1995--The Coastal Corporation announced today that its subsidiary, Coastal Wuxi Power Ltd., has closed a joint-venture contract to build and operate a 40-megawatt power plant in the industrial center of Wuxi City in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China. The government of China gave its final approval to the project May 8 by issuing a business license for the joint venture. All conditions have now been satisfied to permit funding of the project, which is expected in the next few days. Robert C. Hart, Coastal's vice president for power production and president of both Coastal Power Production Company and Coastal Wuxi Power Ltd., was in Wuxi City April 27 for the signing of a cooperative joint- venture contract with two Chinese partners -- China National Aero-Engine Corporation (CAREC CAREC Caribbean Epidemiology Centre CAREC Central Asia Regional Economic Cooperation (Asian Development Bank) CAREC Central American Renewable Energy and Cleaner Production Facility ), a subsidiary of China's Ministry of Aviation Industry, and the Wuxi New Energy Investment Company, which is jointly owned by two local government entities. Hart also signed the articles of association for the joint-venture entity, to be called the Wuxi CAREC-COASTAL Power Production Company. The joint-venture entity then signed a power purchase contract with the Wuxi City Power Bureau and an engineering, procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , and construction contract with CAREC and New Energy. "The signing of these contracts represents significant progress in the development of our overseas power projects," said David A. Arledge, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of The Coastal Corporation. "We look forward to building upon this effort as China's continued economic development and growing need for electricity present additional opportunities." The joint venture will build and operate a simple-cycle, diesel-fired, LM 6000 combustion-turbine peaking plant to provide 40 megawatts of electricity. Construction is expected to begin in May, with the plant scheduled to begin power production in September. A second phase of construction, scheduled to begin one year after the plant begins commercial operation, would more than double the plant's energy output. The initial plant is estimated to cost $26 million. Coastal Wuxi Power's investment is $15.6 million, or 60 percent of the total, while CAREC and New Energy would each bear 20 percent. The plant will be designed by CAREC under the guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. of the engineering, procurement, and construction contract. On-site construction and installation will be performed by CAREC and New Energy. The electricity produced will be sold to the Wuxi City Power Bureau under the terms of a 15-year, take-or-pay contract. Wuxi City is a prosperous industrial city of 4.2 million people, located in Jiangsu Province about 80 miles northwest of Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. . The sixth largest economic center in the country, Wuxi City provides its residents with a high standard of living. Coastal Wuxi Power Ltd. is a subsidiary of Coastal Power Production Company, itself a subsidiary of The Coastal Corporation. The Coastal Corporation (NYSE NYSE See: New York Stock Exchange : CGP CGP CommuniGate Pro (messaging e-mail server) CGP Certified Group Psychotherapist CGP Controlled Goods Program (Canadian) CGP Certified Geriatric Pharmacist (pharmacist certification) ) is a Houston-based energy holding company, this year celebrating the 40th anniversary of its founding. Coastal has consolidated assets of more than $10 billion and subsidiary operations in natural gas marketing, transmission and storage, petroleum refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar and marketing, oil and gas exploration and production, coal, chemicals, trucking, and independent power production. CONTACT: The Coastal Corporation Steve Eames, 713/877-6733 Brian Mitchell Brian Mitchell may refer to:
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