Announcement on Connected Transaction

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Limited take no responsibility for the contents of this announcement, make no
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liability whatsoever for any loss howsoever arising from or in reliance upon 
the whole or any part of the contents of this announcement. 


                DATANG INTERNATIONAL POWER GENERATION CO., LTD.

          (a sino-foreign joint stock limited company incorporated 
                       in the People's Republic of China)
                           (Stock Code: 00991) 

                              ANNOUNCEMENT
                         CONNECTED TRANSACTION


ENTRUSTED LOAN FRAMEWORK AGREEMENT 

On 2 July 2012, the twenty-sixth meeting of the seventh session of the Board 
considered and approved the provision of the Entrusted Loan of not more than 
RMB2 billion to Duolun Coal Chemical Company. On 5 July 2012, the Company 
entered into the Entrusted Loan Framework Agreement with Energy and Chemical 
Company, Datang Finance Company and Duolun Coal Chemical Company in relation
to the provision of the Entrusted Loan by the Company or Energy and Chemical 
Company to Duolun Coal Chemical Company pursuant to the Entrusted Loan 
Framework Arrangement, in which Datang Finance Company acts as the lending 
agent. 


CONNECTED TRANSACTION

As at the date of this announcement, Duolun Coal Chemical Company is owned as
to 60% and 40% by Energy and Chemical Company, a wholly-owned subsidiary of 
the Company, and CDC, respectively. Datang Finance Company is a subsidiary 
of CDC which is a controlling Shareholder. CDC together with its subsidiaries
hold approximately 34.71% of the issued share capital of the Company as at
the date of this announcement. Both Duolun Coal Chemical Company and Datang
Finance Company are therefore connected persons of the Company and the 
transaction under the Entrusted Loan Framework Agreement constitutes a 
connected transaction of the Company under Chapter 14A of the Listing Rules.  

As one of the applicable percentage ratios (as defined in Rule 14.07 of the 
Listing Rules) for the total principal amount of the Entrusted Loan under 
the Entrusted Loan Framework Agreement as approved by the Board is more than 
5%, the Entrusted Loan Arrangement and the Entrusted Loan Framework Agreement 
are subject to the requirements of reporting, announcement and approval by 
the independent Shareholders of the Company under Chapter 14A of the Listing 
Rules. 

The Company will disclose the relevant details in the next annual report and 
accounts of the Company in accordance with the relevant requirements as set 
out in Rule14A.45 of the Listing Rules. A circular containing details of the 
Entrusted Loan Arrangement and the Entrusted Loan Framework Agreement, a 
letter from the independent board committee and a letter from the independent 
financial advisor, both advising the Entrusted Loan Arrangement and the terms 
of the Entrusted Loan Framework Agreement will be despatched to the 
Shareholders on or before 26 July 2012.


ENTRUSTED LOAN FRAMEWORK AGREEMENT 

Date and Subject Matter 

On 2 July 2012, the twenty-sixth meeting of the seventh session of the Board 
considered and approved the provision of the Entrusted Loan of not more than 
RMB2 billion to Duolun Coal Chemical Company. On 5 July 2012, the Company 
entered into the Entrusted Loan Framework Agreement with Energy and Chemical 
Company, Datang Finance Company and Duolun Coal Chemical Company in relation 
to the provision of the Entrusted Loan by the Company or Energy and Chemical 
Company to Duolun Coal Chemical Company pursuant to the Entrusted Loan 
Framework Arrangement, in which Datang Finance Company acts as a lending 
agent. 

Parties 

  1. The Company or Energy and Chemical Company, as the lender; 

  2. Datang Finance Company, as the lending agent; and

  3. Duolun Coal Chemical Company, as the borrower.


MAJOR TERMS OF THE ENTRUSTED LOAN FRAMEWORK AGREEMENT 

Entrusted Loan Framework Arrangement 

Pursuant to the Entrusted Loan Framework Agreement, Datang Finance Company 
is entrusted by the Company or Energy and Chemical Company to act as a 
lending agent to, inter alia, release the Entrusted Loan by various tranches 
to Duolun Coal Chemical Company. 

Each of the parties agrees that it shall enter into separate entrusted loan 
agreements, during the term of the Entrusted Loan Framework Agreement, in 
relation to the provision of the Entrusted Loan in tranches, provided that 
such separate entrusted loan agreements shall be in compliance with the 
principles, terms and conditions under the Entrusted Loan Framework Agreement.


Principal amount of the Entrusted Loan 

Not exceeding RMB2 billion 


Term

The term for the Entrusted Loan Framework Agreement is 36 months commencing 
from 5 July 2012 and ending on 4 July 2015. 


Interest rate 

At a floating interest rate, being the benchmark interest rate to be charged 
for the same level of loans in RMB by the People's Bank of China for the same 
period as announced by the People's Bank of China on the date when each 
tranche of borrowing is withdrawn and such interest rate is to be adjusted 
annually. The adjustment date is 21st December of each year. The adjusted 
interest rate will be the benchmark interest rate for the same level of 
loans in RMB for the same period announced by the People's Bank of China 
on the adjustment date. 

Such interest rate is arrived at after arm's length negotiation between the 
Company and Duolun Coal Chemical Company in consideration of the overall 
reduction in capital costs to the Group after the accounts of Duolun Coal 
Chemical Company (being the controlled subsidiary of the Company) are 
consolidated into the accounts of the Company. 


Repayment schedule of the principal of the Entrusted Loan 

One-off repayment of the principal by Duolun Coal Chemical Company upon 
maturity under the relevant entrusted loan agreements.


Payment schedule of interests of the Entrusted Loan 

Interests shall be settled by Duolun Coal Chemical Company on a quarterly
basis. The settlement date falls on the twentieth (20th) day of the last 
month of each quarter.


Handling Fees

The handling fees shall be charged in tranches by Datang Finance Company 
on the date of grant of the relevant tranches of the entrusted loan and on 
the date corresponding to the date of grant of that relevant tranches of 
the entrusted loan in each following year. The rate of the handling fees 
shall be 0.025% of the remaining amount of the Entrusted Loan each year.


Effective Date 

The Entrusted Loan Framework Agreement shall become effective when it is 
duly signed by the parties and upon the approval of the internal authority 
of each of the parties (or the internal approval procedures of each of the 
parties have been implemented). 


INFORMATION RELATING TO THE COMPANY 

The Company is principally engaged in the development and operation of power 
plants, the sale of electricity and thermal power, and the repair, testing 
and maintenance of power equipment as well as the provision of power-related
technical services. The main service areas of the Company are in the PRC. 


INFORMATION RELATING TO ENERGY AND CHEMICAL COMPANY

Energy and Chemical Company is principally engaged in the production and 
sales businesses for the products including coal-alkene, coal-natural gas 
and extraction of alumina from pulverized fuel ash.


INFORMATION RELATING TO DUOLUN COAL CHEMICAL COMPANY 

Duolun Coal Chemical Company was duly incorporated on 19 August 2009 with a 
registered capital of RMB4,050 million. Duolun Coal Chemical Company is 
principally responsible for the construction and operation of the coal-based 
olefin project with an annual output of 460,000 tonnes. The equity structure 
of Duolun Coal Chemical Company is as follows: Energy and Chemical Company, 
the Company's wholly-owned subsidiary, holds 60% equity interests, and CDC, 
the controlling Shareholder of the Company, holds 40% equity interests. As 
at the date of this announcement, the aforementioned project is still in 
construction.


INFORMATION RELATING TO DATANG FINANCE COMPANY

Datang Finance Company is a non-banking financial institution duly 
incorporated in the PRC on 10 May 2005. Its registered capital is 
RMB3 billion. Its principal business includes, among others, the provision 
of deposit services, loan services, entrusted loan services and entrusted 
investment services.


REASONS FOR AND BENEFITS OF ENTERING INTO THE ENTRUSTED LOAN FRAMEWORK 
AGREEMENT 

In order to ensure the smooth progress of the Duolun Coal Chemical Project, 
the Company or Energy and Chemical Company intends to provide the Entrusted 
Loan of not exceeding RMB2 billion to Duolun Coal Chemical Company according 
to the actual situation of the Duolun Coal Chemical Project. The Entrusted 
Loan is beneficial for the subsequent project construction and the smooth 
progress of production operation of the Duolun Coal Chemical Project and is 
to ensure repayment of due borrowings by Duolun Coal Chemical Company. It is 
also considered that the overall capital costs to the Group will be reduced 
after the accounts of Duolun Coal Chemical Company (being the controlled
subsidiary of the Company) are consolidated into the accounts of the Company. 

The Directors (excluding the independent non-executive Directors whose views 
will be contained in the circular after considering the advice from the 
independent financial advisor) are of the view that the terms of the 
Entrusted Loan Framework Agreement are fair and reasonable, have been 
entered into after arm's length negotiation between all parties thereto and 
determined on normal commercial terms and is in the interests of the Company 
and the Shareholders as a whole. 


CONNECTED TRANSACTION 

As at the date of this announcement, Duolun Coal Chemical Company is owned as 
to 60% and 40% by Energy and Chemical Company, a wholly-owned subsidiary of 
the Company, and CDC, respectively. Datang Finance Company is a subsidiary 
of CDC which is a controlling Shareholder. CDC together with its subsidiaries, 
hold approximately 34.71% of the issued share capital of the Company as at 
the date of this announcement. Both Duolun Coal Chemical Company and Datang 
Finance Company are therefore connected persons of the Company and the 
transaction under the Entrusted Loan Framework Agreement constitutes a 
connected transaction of the Company under Chapter 14A of the Listing Rules.

As one of the applicable percentage ratios (as defined in Rule 14.07 of
the Listing Rules) for the total principal amount of the Entrusted Loan under 
the Entrusted Loan Framework Agreement as approved by the Board is more than 
5%, the Entrusted Loan Arrangement and the Entrusted Loan Framework Agreement 
are subject to the requirements of reporting, announcement and approval by 
the independent Shareholders of the Company under Chapter 14A of the 
Listing Rules.  

The Company will disclose the relevant details in the next annual report and 
accounts of the Company in accordance with the relevant requirements as set 
out in Rule 14A.45 of the Listing Rules. A circular containing details of 
the Entrusted Loan Arrangement and the Entrusted Loan Framework Agreement, 
a letter from the independent board committee and a letter from the 
independent financial advisor, both advising the Entrusted Loan Arrangement 
and the terms of the Entrusted Loan Framework Agreement will be despatched 
to the Shareholders on or before 26 July 2012. 

Any Shareholder with a material interest in the transaction and its associates 
will abstain from voting at the extraordinary general meeting to be held by 
the Company, to, among others, consider and approve the Entrusted Loan 
Framework Agreement. Therefore, CDC and its associates shall abstain from 
voting at the extraordinary general meeting to approve the Entrusted Loan 
Framework Agreement.


INDEPENDENT BOARD COMMITTEE AND INDEPENDENT FINANCIAL ADVISOR

An independent board committee comprising the independent non-executive 
Directors will be formed to advise the independent Shareholders on the terms 
of the Entrusted Loan Framework Agreement. None of the Director has any 
material interest in the Entrusted Loan Framework Agreement. 

The Company will appoint an independent financial advisor to advise the 
independent board committee of the Company and the independent Shareholders 
on the terms of the Entrusted Loan Framework Agreement. 


DEFINITIONS 

In this announcement, unless the context otherwise requires, the following 
expressions have the following meanings:

"A Share(s)"        the domestic ordinary share(s) of the Company with a 
                    nominal value of RMB1.00 each and are listed on the 
                    Shanghai Stock Exchange 

"Board"             the board of Directors of the Company 

"Datang Finance   
  Company"          Datang Corporation Finance Limited Company, a subsidiary 
                    of CDC which is a controlling Shareholder. Its principal 
                    business includes, among others, the provision of deposit 
                    services, loan services, entrusted loan services and 
                    entrusted investment services
 
"CDC"               China Datang Corporation, a State-owned enterprise 
                    established under the laws of the PRC and is the 
                    controlling Shareholder of the Company pursuant to the 
                    Listing Rules which, together with its subsidiaries, 
                    own approximately 34.71% of the issued share capital 
                    of the Company as at the date of this announcement 

"Company"           Datang International Power Generation Co., Ltd., a 
                    sino-foreign joint stock limited company incorporated in 
                    the PRC on 13 December 1994, whose H Shares are listed 
                    on the Stock Exchange and the London Stock Exchange and 
                    whose A Shares are listed on the Shanghai Stock Exchange 

"connected person"  has the meaning ascribed to it under the Listing Rules

connected 
  transaction"      has the meaning ascribed to it under the Listing Rules

"Directors"         the director(s) of the Company 

"Duolun Coal 
  Chemical Company" Datang Inner Mongolia Duolun Coal Chemical Company 
                    Limited, which constructs and operates the Duolun Coal 
                    Chemical Project 

"Duolun Coal 
  Chemical Project" the project located in Duolun County in the Inner 
                    Mongolia Autonomous Region which uses the brown coal from 
                    the East Unit 2 coal mine of Shengli Coal Mine as raw 
                    materials for the production of polypropylene chemical 
                    products by employing the pulverised coal gasification 
                    technology, the synthetic gas purification technology, 
                    large-scale methanol synthesis technology, the 
                    methanol-to-propylene technology and the propylene 
                    polymerisation technology

"Energy and 
  Chemical Company" Datang Energy and Chemical Company Limited, a wholly-owned 
                    subsidiary of the Company, principally engaged in the 
                    production and sales businesses for the products including 
                    coal-alkene, coal-natural gas and extraction of alumina 
                    from pulverized fuel ash

"Entrusted Loan"    the entrusted loan of a total principal amount of not 
                    exceeding RMB2 billion 

"Entrusted Loan 
  Framework 
  Agreement"        the entrusted loan framework agreement entered into on 5 
                    July 2012 between the Company, Energy and Chemical Company, 
                    Datang Finance Company and Duolun Coal Chemical Company 
                    in respect of the Entrusted Loan Framework Arrangement 

"Entrusted Loan 
  Framework 
  Arrangement"      the arrangement where Datang Finance Company is entrusted 
                    by the Company or Energy and Chemical Company to act as a 
                    lending agent to, inter alia, release the Entrusted Loan 
                    in various tranches to Duolun Coal Chemical Company 
                    pursuant to the Entrusted Loan Framework Agreement

"Group"             the Company and its subsidiaries 

"H Share(s)"        the overseas listed foreign shares of the Company with a 
                    nominal value of RMB1.00 each, which are listed on the 
                    Stock Exchange and the London Stock Exchange

"Hong Kong"         the Hong Kong Special Administrative Region of the PRC

"Listing Rules"     the Rules Governing the Listing of Securities on the Stock 
                    Exchange

"PRC"               the People's Republic of China 

"RMB"               Renminbi, the lawful currency of the PRC 

"Shareholder(s)"    the holder(s) of the Share(s) 

"Shares"            the ordinary shares of the Company with a nominal value 
                    of RMB1.00 each, comprising domestic Shares and H Shares 

"Stock Exchange"    The Stock Exchange of Hong Kong Limited 

"%"                 percent 



                                                       By Order of the Board 
 
                                                              Zhou Gang     

                                                       Secretary to the Board 

Beijing, the PRC, 5 July 2012 

As at the date of this announcement, the Directors of the Company are: 
Liu Shunda , Hu Shengmu, Cao Jingshan, Fang Qinghai, Zhou Gang, Liu Haixia, 
Guan Tiangang, Su Tiegang, Ye Yonghui, Li Gengsheng, Li Yanmeng*, 
Zhao Zunlian*, Li Hengyuan*, Zhao Jie* and Jiang Guohua*. 

* Independent non-executive Directors