Hong Kong power utility CLP Holdings is to invest yuan 5.2 billion ($628 million) developing a coal-fired power plant in South China.

Following approval from the National Development and Reform Commission CLP will construct two 600 MW generators in Fangchenggang, a port city of Guangxi Autonomous Region of South China.

The first unit is expected to come on line in the autumn of 2007 and the second by March 2008.

CLP is taking a 70% stake in the development with the remaining 30% going to the Guangxi Electric Power Company Ltd, the local company in Guangxi.