Microsoft Word - E-ORA-lin2015-071

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.


(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 01088)


OVERSEAS REGULATORY ANNOUNCEMENT


This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.


The 'Announcement Regarding the Progress of the Tendering for the Sumsel-1 IPP Project in Indonesia' as published in Chinese on the website of the Shanghai Stock Exchange (www.sse.com.cn) on 21 November 2015 is enclosed hereto as overseas regulatory announcement.



Beijing, 20 November, 2015

By Order of the Board

China Shenhua Energy Company Limited

Huang Qing

Secretary to the Board of Directors


As at the date of this announcement, the Board comprises the following: Dr. Zhang Yuzhuo, Dr. Ling Wen and Mr. Han Jianguo as executive directors, Mr. Chen Hongsheng as non-executive director, and Ms. Fan Hsu Lai Tai, Mr. Gong Huazhang and Mr. Guo Peizhang as independent non-executive directors.

Stock Code: 601088 Stock Short Name: China Shenhua No. of Announcement: Lin 2015-071

China Shenhua Energy Company Limited Announcement Regarding the Progress of the Tendering for the Sumsel-1 IPP Project in Indonesia



The board of directors and all directors of China Shenhua Energy Company Limited guarantee that the information set out in this announcement does not contain any false statements, misleading representations or material omissions, and severally and jointly accept responsibility as to the truthfulness, accuracy and completeness of the content herein.

Recently, China Shenhua Energy Company Limited (the 'Company') received notification from Perusahaan Listrik Negara ('PLN') that the consortium (the 'Consortium') led by the Company ranked first in the shortlist of preferred bidders for the development of Sumsel-1 Coal-fired Steam Power Plant2×350 MW (2×300 MW for net on-grid capacity) IPP project in Indonesia(the 'Project').In accordance with the notice of PLN, the Consortium is currently negotiating with PLN to agree on the intention to develop the Project and the terms of a power purchase agreement with a term of 30 years.

  1. Project Details. The Project is located at a site approximately 93 km to the southwest of Palembang City, capital of South Sumatra Province, Indonesia. The successful bidder will be responsible for the investment on the Project with the scheme of build, own and operate, as well as the investment and construction of the power transmission line between the power plant and the access point of the power grid and the relevant equipment and facilities. The construction period will be approximately 45 months, and the generating units to be constructed are expected to come into production in 2020.

  2. Investment Entity. The Company proposes to establish a joint venture project company with PT. Lion Power Energy ('LPE'), a member of the Consortium and an Indonesian coal company, for investment on the Project with the scheme of build, own and operate. It is intended that the Company and LPE will hold 75% and

    25% equity interest in the project company respectively, and LPE will supply the coal for the Project.

  3. Investment Amount. The total dynamic investment of the Project is approximately RMB4.88billion, approximately 30% of which will be capital funds to be contributed by the shareholders based on proportion of shareholding, and the remaining funds required will be provided by way of project financing.

Winning the tender for the Project will further expand the Company's scale of installed capacity for power generation in Indonesia, and become an important step for the Company to enthusiastically respond to China's 'One Belt, One Road' initiative by steadily pushing forward its overseas development strategy, which is also in line with the clean energy development strategy of the Company.

The Company has a 70%-owned controlling subsidiary PT.GH EMM INDONESIA in Indonesia, operating 2×150 MW coal-fired generating units with 3,072 utilisation hours and power output dispatch of 820 million kWh in the first half of 2015.

This announcement is published on a voluntary basis. The Project is currently at an initial stage, the negotiation with PLN on project development and the terms of a power purchase agreement is still ongoing, and there are still some uncertainties. Investors are advised that inappropriate reliance on or use of the above information may lead to investment risks.


By order of the board of directors China Shenhua Energy Company Limited

Huang Qing

Secretary to the Board of Directors 21 November 2015

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