China Huadian Corp, one of the country`s five major power generation groups, said in a statement it will invest more than 50 billian yuan ($7.3 billion) in a power complex in Hebei province.

China Huadian, parent of Huadian Power, said it had signed a framework agreement with the local government last week to build the complex, which would house a coal dock, coal-fired power plant and manufacturing and coal chemical facilities.

The complex in the Caofeidian industrial area would have annual output worth 20-30 billion yuan, and was expected to return earnings before tax of 3-4 billion yuan, the firm said.

China Huadian did not say when construction of the facility would be completed or when commercial operations would begin.

China had raised on-grid power tariff rates twice this year to help power providers shoulder high coal prices, but the hikes were still inadequate to cover costs.

Huadian Power posted last week a net loss of 874 million yuan for the third quarter.

China, the world`s No. 2 market for electricity after the United States, depends on coal to feed three quarters of its power capacity. 

(editor: annie)