(Yicai Global) July 22 -- China's Chuantou Energy has begun the construction of the Yinjiang Hydropower Station, a rare waterpower project nearby an urban area in China, in southwestern Sichuan province.

The investment for the Yinjiang Hydropower Station on the Jinsha River, located in the upper reaches of the Yangtze River, will reach CNY6 billion (USD872.2 million), the National Business Daily reported.

The plant will generate energy for the city of Panzhihua and a local industrial park. The construction period will be six years and the annual capacity will be 1.6 billion kilowatt hours.

In March, Chuantou acquired a 60 percent stake in the project from state-owned energy giant China Resources for CNY108.8 million (USD15.8 million). 

At the end of last year, Chuantou had a total installed capacity of 38.9 million kWh. Its net profit rose 9.4 percent to CNY3.6 billion in 2018, according to the Chengdu-based firm's financial report.

Editor: Emmi Laine