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How is the progress made by the Company in environmental protection over the past few years and what are the Company's 2007 environmental protection measures and plans?


The Company emphasizes the integration of development objectives and social responsibilities by actively employing environmental protection and energy conservation as the core indicators of its strategic development. Firstly, with respect

to optimising the composition of generation units, 20 generation units with a capacity of 600 MW each have been built since 2002, increasing the percentage of the Company's large energyconserving and environment-friendly generation units from the then 0% to the current over 61.8%. Secondly, the percentage of the Company's hydropower will increase following the successive completions and commencements of a Yunnan hydropower project in 2006 and a hydropower plant in Pengshui, Chongqing, in 2007. Thirdly, a zero breakthrough was made in wind power plant construction with the commencement of the first set of 40 MW wind power generation unit in Inner Mongolia in 2006. Fourthly, two generation units each with a single-unit capacity of 300 MW using clean-coal combustion burners ?§C China's largest domestically-made circulating fluid bed burners among single units in active service ?§C are being constructed at the Honghe Project in Yunnan. Fifthly, new generation units will be installed with desulphurisation facilities and desulphurisation facilities for aged generation units will be upgraded. The installed capacity of generation units already equipped with desulphurisation facilities currently amounts to 12,040 MW, representing 67.3% of the capacity of the Company's coal-fired generation units.

Following the Company's strengthened equipment upgrades and investments on environmental protection facilities in 2006, the emission of smoke ash, sulphur dioxide, nitrogen oxides and waste water per unit of power generation decreased by 51%, 23.6%, 15.7% and 30% respectively as compared to the Previous Year.

2007 has been designated as the Company's "Environmental Protection Year", during which the Company will further enforce its established environmental protection strategies. During the Year, the Company will have 2,550 MW of generation units upgraded for desulphurisation. 5,800 MW of generation units installed with desulphurisation facilities in operation are expected to commence operation. Desulphurisation facilities will be installed in all new generation units under construction as well. The Company also seeks to launch denitration trials by taking the initiative in the industry to launch a pilot scheme to supply clean and environment-friendly energy in the industry, such as Beijing's Gaojin Power Plant which is planning to launch a denitration upgrade pilot scheme, helping to ensure and facilitate clean air in the capital and an environment-friendly atmosphere for the Olympic Games.


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