China Three Gorges Offering Equity to Outside Investors
China’s Three Gorges South Asia Investment Ltd, the offshoot of the largest hydro power operator China Three Gorges Corp. is planning to offer 19 percent of their equity to outside investors. According to a senior executive, that company is diversifying their shareholding due to CTG is now dedicated in expanding internationally and to turn itself into a market oriented business.
China Three Gorges owns around 70 percent of CSAIL and the remaining 15/15 split between the Silk Road Fund and IFC or the International Finance Corporation, which is a member of the World Bank Group. Speaking at the Second China-Pakistan Economic Corridor Media Forum, CTG is now ready to offer stakes in CSAIL and is expecting to hold no less than 51 percent of the operations. Founded in March of 2012, CSAIL works on improving hydro, wind and solar energy projects that is mainly located in Pakistan but other markets along the Belt and Road Initiative. CTG has been involved in eight Pakistan projects one is already completed a wind farm and three hydro power projects have already started construction with the remaining other waiting for approval including the $2.5 billion Kohala hydro power project.
The company has already started nearly $7 billion worth of projects in Pakistan and is said to exceed $50 billion by 2039. CTG is also investing in other mega hydro power dams found along Indus River that they hope will help in solving Pakistan’s power shortage. Officials are expecting that by 2020, 15 percent of CTG’s revenue will come form overseas projects.