China is preparing to sell up to 11 power plants in a move that could raise some 2 billion US dollars to upgrade infrastructure and alleviate chronic electricity shortages.

Britain's Financial Times reports that the State Grid Corporation of China is believed to have appointed two international investment banks, Goldman Sachs and UBS to manage the sale, which is expected to begin in the next few months.

The appointment suggests that China wants to open its fast-growing energy market to foreign companies.

The sale of the power stations, part of a small proportion of total generating capacity left with State Grid, will provide it with funds needed to upgrade infrastructure. It could also bolster its balance sheet ahead of a possible overseas listing in the next few years

State media have described the 11 power plants, which have combined capacity of 6,470 megawatts mainly in central northwest and eastern China, as of relatively good quality.

International power generators have little presence in China but have long hoped to gain a bigger foothold because the country's rapid economic expansion is expected to fuel strong growth in energy demand.

(CRI.com August 18, 2004)