Sep. 29, 2009 (China Knowledge) - China Gezhouba Group Co Ltd<600068>, which is primarily engaged in contract construction, has announced that on Sep. 23 it signed a US$451-million contract with Ethiopian Electric Power Corp to build a hydropower station with an annual generating capacity of 254 megawatts in southern Ethiopia, sources reported.

The hydropower project will take 48.5 months, so the deal will not have much impact on fiscal year 2009. Representatives of the Ethiopian company have submitted loan applications to Chinese banks but are still waiting for approval.

The Chinese construction giant is also expanding in the domestic market. Engineering Co Ltd of China Gezhouba Water & Power (Group) Co Ltd, a subsidiary of China Gezhouba Group, intends to start a RMB 200-million hydropower project in Liangshan Yi Autonomous Prefecture, Sichuan Province. The project will generate 4.8 million kilowatts of power a year.

Reportedly, China Gezhouba Group is selling a 28.36% stake in a subsidiary called Gezhouba Group Machinery & Ship Co Ltd of China for RMB 54.78 million. The subsidiary's net profit was RMB 22.83 million last year.

The seller requires that the buyer have more than RMB 100 million in registered capital and net assets, sources reported.