Sunspark, a subsidiary of Hong Kong based infrastructure company CITIC Pacific, has announced the formation of a US$28M joint venture with Wuxi Power for the construction of pumped storage projects in China.

Announcing the new deal, CITIC said the total registered capital in the venture would amount to around US$20M, with 70% funded by Sunspark’s internal resources and 30% by Wuxi.

The new company, to be called Wuxi Taihu Lake Pumped Storage Power, will carry out the construction of plants in the Ma Shan, Wuxi and Jiangsu regions of China.

The joint venture is initially to span 40 years with the possibility of extension at the end of the existing term.

CITIC said that further details of the deal would be outlined in its 2003 annual report.