HUANENG POWER INTERNATIONAL INC | CIK:0000929058 |

Filed: 4/12/2018

Entity registrant name: HUANENG POWER INTERNATIONAL INC (CIK: 0000929058)

Generator: Unknown

SEC filing page: http://www.sec.gov/Archives/edgar/data/929058/000114420418020280/0001144204-18-020280-index.htm

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39	Commitments

(a)

Capital commitments

Capital commitments mainly relate to the construction of new power projects, certain ancillary facilities and renovation projects for existing power plants. Details of such commitments are as follows:

 

		As at 31 December
		2017				2016
Contracted but not provided			16,985,439				18,603,559

 

(b)

Operating lease commitments

The Company and its subsidiaries have various operating lease arrangements for land and buildings. Some of the leases contain renewal options and most of the leases contain escalation clauses. Lease terms do not contain restrictions on the Company and its subsidiaries' activities concerning dividends, additional debts or further leasing.

Total future minimum lease payments under non-cancelable operating leases are as follows:

 

		As at 31 December
		2017				2016
Land and buildings
- not later than 1 year			196,870				181,441
- later than 1 year and not later than 2 years			118,272				144,088
- later than 2 years and not later than 5 years			143,628				133,984
- later than 5 years			1,028,014				970,896
Total			1,486,784				1,430,409

 

In addition, in accordance with a 30-year operating lease agreement signed by Huaneng Dezhou Power Plant ("Dezhou Power Plant") and Shandong Land Bureau for the land occupied by Dezhou Power Plant Phases I and II in June 1994, annual rental amounted to approximately RMB30 million effective from June 1994 and is subject to revision at the end of the fifth year from the contract date. Thereafter, the annual rental is subject to revision once every three years. The increment for each rental revision is restricted to no more than 30% of the previous annual rental amount. For the years ended 31 December 2017 and 2016, the annual rentals was approximately RMB34 million.

(c)

Fuel purchase commitments

The Company and its subsidiaries have entered into various long-term fuel supply agreements with various suppliers in securing fuel supply for various periods. All the agreements require minimum, maximum or forecasted volume purchases and subject to certain termination provisions. Related purchase commitments are as follows:

 

					As at 31 December 2017
		Periods			Purchase quantities		Estimated unit costs (RMB)
A government-related enterprise			2018-2039		2.8 million m3/day*			2.21/ m	3
A government-related enterprise			2018-2023		541 million m3/year*			2.06/ m	3
			2018-2023		450 million m3/year*			2.06/ m	3
			2018-2023		541 million m3/year*			2.10/ m	3
			2018-2023		450 million m3/year*			2.27/ m	3
A government-related enterprise			2018-2026		200 million m3/year*			2.38/ m	3
Other suppliers			2018-2019		243 BBtu**/day		approximately 67,000/BBtu
			2020-2021		242 BBtu**/day		approximately 67,000/BBtu
			2022		248 BBtu**/day		approximately 67,000/BBtu
			2023		247.5~256.6BBtu**/day		approximately 67,000/BBtu
			2024-2028		49.9-81.5BBtu**/day		approximately 69,000/BBtu
					As at 31 December 2016
		Periods			Purchase quantities		Estimated unit costs (RMB)
A government-related enterprise			2017-2039		2.8 million m3/day*			2.31/ m	3
A government-related enterprise			2017-2023		541 million m3/year*			2.16/ m	3
			2017-2023		450 million m3/year*			2.16/ m	3
Other suppliers			2017-2022		248BBtu**/day		approximately 63,000/BBtu
			2023		247.5-256.6BBtu**/day		approximately 63,000/BBtu
			2024-2028		49.9-59.0BBtu**/day		approximately 70,000/BBtu