Connected Transaction

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                            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 AGREEMENT

On 12 October 2011, the 16th 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 12 October 2011, the Company entered into the Entrusted Loan 
Agreement with CCB Diao Yu Tai Branch and Duolun Coal Chemical Company in relation to the 
provision of the first trench of the entrusted loan amounting to RMB500 million by the Company 
to Duolun Coal Chemical Company through the Entrusted Loan Arrangement, in which CCB 
Diao Yu Tai Branch acts as a 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. CDC is the controlling Shareholder of the Company, which together with its 
subsidiaries, hold approximately 34.71% of the issued share capital of the Company as at the date 
of this announcement. Duolun Coal Chemical Company is therefore a connected person of the 
Company and the Entrusted Loan Agreement constitutes a connected transaction of the Company 
under Chapter 14A of the Listing Rules. 



As each of the applicable percentage ratios (as defined in Rule 14.07 of the Listing Rules) for the 
total principal amount of the entrusted loan as approved by the Board is more than 5%, the 
entrusted loan matters and the Entrusted Loan 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 matters and the Entrusted Loan 
Agreement, a letter from the independent board committee and a letter from the independent 
financial advisor, both advising the entrusted loan matters and the terms of the Entrusted Loan 
Agreement will be despatched to the Shareholders on or before 2 November 2011.


BACKGROUND

On 12 October 2011, the 16th meeting of 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 12 October 2011, the Company entered into the Entrusted Loan 
Agreement with CCB Diao Yu Tai Branch and Duolun Coal Chemical Company in relation to 
the provision of the first trench of the entrusted loan amounting to RMB500 million by the 
Company to Duolun Coal Chemical Company through the Entrusted Loan Arrangement, in 
which CCB Diao Yu Tai Branch acts as a lending agent, in order to satisfy Duolun Coal 
Chemical Company's day-to-day capital turnover.

ENTRUSTED LOAN AGREEMENT

Date and Subject Matter

On 12 October 2011, the Company entered into the Entrusted Loan Agreement with CCB Diao 
Yu Tai Branch and Duolun Coal Chemical Company in relation to the provision of the 
Entrusted Loan amounting to RMB500 million by the Company to Duolun Coal Chemical 
Company through the Entrusted Loan Arrangement, in which CCB Diao Yu Tai Branch acts as 
a lending agent.

Parties 

(1)     the Company, as the lender;
(2)     CCB Diao Yu Tai Branch, as the lending agent; and
(3)     Duolun Coal Chemical Company, as the borrower.

Major Terms of the Entrusted Loan Agreement

Entrusted Loan Arrangement

Pursuant to the Entrusted Loan Agreement, CCB Diao Yu Tai Branch is designated by the 
Company to act as a lending agent to, inter alia, release the Entrusted Loan, which is funded by 
the Company, to Duolun Coal Chemical Company and to monitor the use and repayment of the 
Entrusted Loan by Duolun Coal Chemical Company.

Principal amount of the Entrusted Loan

RMB500 million

Term

The term for the Entrusted Loan Agreement is 36 months commencing from 12 October 2011 
to 11 October 2014. 

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 trench 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 of the 
Entrusted Loan Agreement. 

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.

Effective Date 

The Entrusted Loan Agreement shall become effective when it is duly signed by the parties. 

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 DUOLUN COAL CHEMICAL COMPANY

Duolun Coal Chemical Company was duly incorporated on 19 August 2009 with a registered 
capital of RMB4,050.00 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 31 December 2010, Duolun Coal Chemical Company's total assets amounted to 
approximately RMB20,722.62 million; total liabilities amounted to approximately 
RMB16,687.76 million; and the asset-to-liability ratio was approximately 80.53% (the 
aforesaid figures were audited).

As at 30 June 2011, Duolun Coal Chemical Company's total assets amounted to approximately 
RMB21,552.31 million; total liabilities amounted to approximately RMB17,506.20 million; 
and the asset-to-liability ratio was approximately 81.23% (the aforesaid figures have not been 
audited).

REASONS FOR AND BENEFITS OF ENTERING INTO THE ENTRUSTED LOAN 
AGREEMENT

In order to ensure the smooth progress of the Duolun Coal Chemical Project, the Company 
intends to provide the entrusted loan amounting to RMB2 billion (including the first trench of 
the entrusted loan principal of RMB500 million) to Duolun Coal Chemical Company according 
to the actual situation of the Duolun Coal Chemical Project. The Entrusted Loan is beneficial 
for the smooth progress of subsequent project construction 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 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. CDC is the controlling Shareholder of the Company, which together with 
its subsidiaries, hold approximately 34.71% of the issued share capital of the Company as at the 
date of this announcement. Duolun Coal Chemical Company is therefore a connected person of 
the Company and the Entrusted Loan Agreement constitutes a connected transaction of the 
Company under Chapter 14A of the Listing Rules. 

As each of the applicable percentage ratios (as defined in Rule 14.07 of the Listing Rules) for 
the total principal amount of the entrusted loan as approved by the Board is more than 5%, the 
entrusted loan matters and the Entrusted Loan 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 matters and the Entrusted Loan 
Agreement, a letter from the independent board committee and a letter from the independent 
financial advisor, both advising the entrusted loan matters and the terms of the Entrusted Loan 
Agreement will be despatched to the Shareholders on or before 2 November 2011.

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 Agreement. Therefore, CDC and its associates shall 
abstain from voting at the extraordinary general meeting to approve the Entrusted Loan 
Agreement. 


INDEPENDENT BOARD COMMITTEE AND INDEPENDENT FINANCIAL 
ADVISOR

An independent board committee comprising the independent Directors will be formed to 
advise the independent Shareholders on the terms of the Entrusted Loan Agreement. Each of 
the independent non-executive Director does not have any material interest in the Entrusted 
Loan 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 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

"CCB Diao Yu Tai 
Branch"               the Diao Yu Tai Branch of China Construction Bank Corporation, a 
                      bank incorporated in the PRC and is principally engaged in 
                      banking, financial and other finance-related 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

"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 principal amount of RMB500 million

"Entrusted Loan 
Agreement"            the entrusted loan agreement entered into on 12 October 2011 
                      between the Company, CCB Diao Yu Tai Branch and Duolun Coal 
                      Chemical Company in respect of the Entrusted Loan Arrangement

"Entrusted Loan 
Arrangement"          the arrangement where CCB Diao Yu Tai Branch is designated by 
                      the Company to act as a lending agent to, inter alia, release the 
                      Entrusted Loan, which is funded by the Company, to Duolun Coal 
                      Chemical Company and to monitor the use and repayment of the 
                      Entrusted Loan by Duolun Coal Chemical Company pursuant to 
                      the Entrusted Loan 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, 12 October 2011

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