Three Gorges eyes over­seas M&A deals


In 2011, CTG took a 21.35 per­cent stake in En­er­gias de Por­tu­gal SA for 2.69 bil­lion eu­ros ($2.99 bil­lion) and be­came its sin­gle largest share­holder. It was the first ac­qui­si­tion of this type for the Chi­nese com­pany.

The to­tal in­stalled ca­pac­ity of the projects in­volv­ing over­seas in­vest­ment by CTG is about 6,000 megawatts, but the com­pany plans to raise that fig­ure to 25,000mWover the next sev­eral years. That fig­ure is ap­prox­i­mately equal to the full ca­pac­ity of the Three Gorges Dam project, which spans the Yangtze River in Hubei prov­ince.

As of the end of 2014, the com­pany had in­vested in and signed con­tracts to build 81 over­seas projects.

CTG Pres­i­dent Wang Lin said that the com­pany’s strength lies in its rich do­mes­tic ex­pe­ri­ence. By 2020, he said, five of the 10 largest hy­dropower sta­tions in the world would have been built, op­er­ated and owned by CTG. The com­pany hopes to lever­age this ex­pe­ri­ence to boost ex­ports.

“From ex­plo­ration and de­sign to tech­nol­ogy, equip­ment man­u­fac­tur­ing and fund­ing, we have ad­van­tages across the whole industrial chain, which gives us a com­pet­i­tive edge in win­ning bids in the in­ter­na­tional mar­ket,” Lin said.

The gov­ern­ment’s “Belt and Road Ini­tia­tive” of­fers more op­por­tu­ni­ties to the Chi­nese hy­dropower com­pany, which aims to ex­pand in re­gions such as Southeast Asia, Africa, Europe and Latin Amer­ica.

The ini­tia­tive refers to Pres­i­dent Xi Jin­ping’s pro­posal to build the Silk Road Eco­nomic Belt on the Eurasian con­ti­nents and the 21st Cen­tury Mar­itime Silk Road.

The com­pany is giv­ing pri­or­ity to Pak­istan and Brazil in its over­seas in­vest­ment port­fo­lio, and it is pur­su­ing mul­ti­ple hy­dropower projects in the two coun­tries, Lin said.

In Pak­istan, hy­dropower ac­counts for 30 per­cent of the en­ergy mix, with oil and nat­u­ral gas mak­ing up the re­main­der. How­ever, with a short­age of do­mes­tic oil re­sources, de­mand for hy­dropower is soar­ing.

CTG has drawn up a $15 bil­lion plan to build hy­dropower projects as well as wind and so­lar fa­cil­i­ties, which will ease en­ergy short­ages in Pak­istan that have con­strained eco­nomic growth.

The com­pany plans to build hy­dropower and wind projects in Brazil with to­tal in­stalled ca­pac­ity of 3,000 mW.


The Three Gorges hy­dropower project in Yichang, Hubei prov­ince. China Three Gorges Corp had in­vested in and signed con­tracts to build 81 over­seas projects by the end of 2014, and by 2020, it ex­pects five of the 10 largest hy­dropower sta­tions in the world will have been built, op­er­ated and owned by the com­pany.

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