(Yicai Global) May 31 -- Huaneng Lancang River Hydropower, an energy and utilities provider, said it will build a large hydropower station in China’s Tibet Autonomous Region at a cost of about CNY58.4 billion (USD8.2 billion).

Located in the upper reaches of the Lancang river, the project will take 11 year to build and have installed capacity of up to 2.6 million kilowatts, the Kunming-based firm said late yesterday. The project was approved by the National Development and Reform Commission last month, and work is ready to begin, it added.

Thirty percent of the financing will come from the firm's own funds, noted Huaneng Lancang, whose controlling shareholder is state-owned China Huaneng Group. The rest will be raised from China's policy banks and commercial lenders, it pointed out.

The hydropower station will form a key part of Huaneng Lancang's clean energy base along the river, according to the company. Apart from providing long-term, stable, and renewable clean energy, the plant will also boost local tax revenues and employment, it added. Annual tax from the project is likely to exceed CNY1 billion (USD140.8 million).

The Lancang is Asia’s third-longest river at 4,909 kilometers. Beyond the Chinese border it is known as the Mekong.

Huaneng Lancang develops and operates hydropower resources mainly in the Lancang river basin and surrounding regions. The firm also invests in and builds other renewable energy projects, including solar and wind power. 

Editor: Martin Kadiev