Connected Transaction

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                            DATANG INTERNATIONAL 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 19 December 2013, the Company entered into the Entrusted Loan Agreement with Ganzi Hydropower 
Company and Datang Finance Company in relation to the provision of the Entrusted Loan by the 
Company to Ganzi Hydropower Company through the Entrusted Loan Arrangement, in which Datang 
Finance Company acts as a lending agent. The Entrusted Loan will be used for the project capital 
turnover at Ganzi Hydropower Company. 

LISTING RULES IMPLICATIONS

As at the date of this announcement, CDC together with its subsidiaries holds approximately 34.71% 
of the issued share capital of the Company. CDC holds 46.88% of the equity interests of Ganzi 
Hydropower Company; Datang Finance Company is a subsidiary of CDC. Ganzi Hydropower Company and 
Datang Finance Company are therefore connected persons of the Company pursuant to Chapter 14A of 
the Listing Rules and the Entrusted Loan Arrangement constitutes a connected transaction of the 
Company. 

Since one or more of the applicable percentage ratios (as defined under Rule 14.07 of the Listing 
Rules) of the principal of the Entrusted Loan under the Entrusted Loan Agreement is more than 0.1% 
but less than 5% and all other applicable percentage ratios are less than 5%, the Entrusted Loan 
Agreement is subject to the reporting and announcement requirements, but is exempted from the 
independent shareholders' approval requirements under Chapter 14A of the Listing Rules.
ENTRUSTED LOAN AGREEMENT

Date and Subject Matter

On 19 December 2013, the Company entered into the Entrusted Loan Agreement with Ganzi Hydropower 
Company and Datang Finance Company in relation to the provision of the Entrusted Loan by the 
Company to Ganzi Hydropower Company through the Entrusted Loan Arrangement, in which Datang 
Finance Company acts as a lending agent. 

Parties 

1. the Company, as the lender;
2. Datang Finance Company, as the lending agent; and
3. Ganzi Hydropower Company, as the borrower.

Major Terms of the Entrusted Loan Agreement

1. Entrusted Loan Arrangement

   Pursuant to the Entrusted Loan Agreement, Datang Finance Company is designated by the Company 
   to act as a lending agent to provide the Entrusted Loan to Ganzi Hydropower Company and to 
   monitor the use and repayment of the Entrusted Loan by Ganzi Hydropower Company.

2. Principal amount of the Entrusted Loan

   RMB300 million.

3. Term

   The term for the Entrusted Loan Agreement is one year commencing from 19 December 2013 to 
   18 December 2014. 
 
4. Interest rate

   At a floating interest rate, being the benchmark interest rate to be charged for the same 
   level of loans in RMB 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 borrowing 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.

   As at the date of this announcement, the prevailing benchmark interest rate for one-year 
   loans in RMB as announced by the People's Bank of China is 6.00% per annum.

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

5. Repayment schedule of the principal of the Entrusted Loan
   One-off repayment of the principal of the Entrusted Loan by Ganzi Hydropower Company upon 
   maturity of the Entrusted Loan Agreement or early repayment depending on the circumstances. 

6. Payment schedule of interests of the Entrusted Loan 

   Interests shall be settled by Ganzi Hydropower Company on a quarterly basis. The settlement 
   date falls on the 20th of the last month of each quarter.

7. Handling charge

   The handling charge for the Entrusted Loan under the agreement is calculated at 0.0006% of the 
   value of the agreement, and shall be paid by Ganzi Hydropower Company to Datang Finance Company 
   on an one-off basis within 5 working days from the effective date of the Entrusted Loan 
   Agreement. 

8. Effective Date 

   The Entrusted Loan Agreement shall become effective when it is duly signed by the legal 
   representatives or authorized agent of the contracting parties with their respective company 
   seals affixed thereon. 

REASONS FOR AND BENEFITS OF ENTERING INTO THE ENTRUSTED LOAN AGREEMENT

In view of the cooperation history between Datang Finance Company and the Company and given 
that the provision of entrusted loan services by Datang Finance Company is covered under the 
Financial Services Agreement (2011-2013), Datang Finance Company has better understanding of 
the operations of the Company which will allow more expedient and efficient services than those 
rendered by other PRC commercial banks. Further, the handling fees charged by Datang Finance 
Company will not be higher than those charged by other PRC commercial banks. In view of the 
above considerations, the Company appointed Datang Finance Company, rather than other PRC 
commercial banks, as the lending agent.

Further, considering the capital risks control measures under the Financial Services Agreement 
(2011-2013) and the Financial Services Agreement (2014-2016), and the terms under the Entrusted 
Loan Agreement are normal commercial terms which confer no additional obligations nor risks on 
the Company when comparing with other entrusted loan agreements in the market, the Company 
considers that no additional risks will be involved by appointing Datang Finance Company as 
the lending agent under the Entrusted Loan Agreement.

In order to ensure the project cash turnover of Ganzi Hydropower Company, the Company intends 
to provide the Entrusted Loan of RMB300 million to Ganzi Hydropower Company. The Company is 
of the view that the Entrusted Loan will be primarily utilised by Ganzi Hydropower Company to 
supplement its liquidity, and is thus beneficial for the smooth progress of the project 
construction and production and operation activities of Ganzi Hydropower Company.

Considering the possible higher financial costs for Ganzi Hydropower Company to obtain the 
current loan from other commercial banks when comparing with the financial costs incurred by 
the Company to obtain the funding of the Entrusted Loan, the Company considers that the 
overall capital costs to the Group will be relatively reduced after the accounts of Ganzi 
Hydropower Company (being the subsidiary of the Company) are consolidated into the accounts 
of the Company.

The Directors (including the independent non-executive Directors) 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 best interests of the Company and its Shareholders as a whole.

None of the Directors has material interest in the Entrusted Loan Agreement. Those connected 
Directors, including Chen Jinhang, Hu Shengmu and Fang Qinghai, have abstained from voting at 
the Board meeting for approval of the relevant transaction in accordance with the requirements 
of the Listing Rules of Shanghai Stock Exchange. 

INFORMATION RELATING TO THE PARTIES OF THE AGREEMENT

1. 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.

2. Information relating to Ganzi Hydropower Company

   Ganzi Hydropower Company was incorporated on 3 July 2006 with a registered capital of 
   approximately RMB1.625 billion. Ganzi Hydropower Company is primarily engaged in the 
   development and construction of two hydropower projects, namely the Changheba Hydropower 
   Project (with an installed capacity of 2,600MW) and the Huangjinping Hydropower Project 
   (with an installed capacity of 850MW). The Changheba Hydropower Project and the Huangjinping 
   Hydropower Project were approved by the National Development and Reform Commission in 
   November 2010 and February 2011, respectively. As at the date of this announcement, 52.5% 
   of the equity interest of Ganzi Hydropower Company is held by the Company; 46.88% of the 
   equity interest of Ganzi Hydropower Company is held by CDC; and 0.62% of the equity interest 
   of Ganzi Hydropower Company is held by Gantou Hydropower.

3. 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.

4. Information relating to CDC

   CDC was established on 9 March 2003 with registered capital of RMB18.109 billion. It is 
   principally engaged in the development, investment, construction, operation and management 
   of power energy, organization of power (thermal) production and sales; manufacturing, 
   repair and maintenance of power equipment; power technology development and consultation; 
   power engineering, contracting and consultation of environmental power engineering; 
   development of new energy as well as development and production of power-related coal 
   resources.

LISTING RULES IMPLICATIONS

As at the date of this announcement, CDC together with its subsidiaries holds approximately 
34.71% of the issued share capital of the Company. CDC holds 46.88% of the equity interests 
of Ganzi Hydropower Company; Datang Finance Company is a subsidiary of CDC. Ganzi Hydropower 
Company and Datang Finance Company are therefore connected persons of the Company pursuant to 
Chapter 14A of the Listing Rules and the Entrusted Loan Arrangement constitutes a connected 
transaction of the Company. 

Since one or more of the applicable percentage ratios (as defined under Rule 14.07 of the 
Listing Rules) of the principal of the Entrusted Loan under the Entrusted Loan Agreement is 
more than 0.1% but less than 5% and all other applicable percentage ratios are less than 5%, 
the Entrusted Loan Agreement is subject to the reporting and announcement requirements, but 
is exempted from the independent shareholders' approval requirements under Chapter 14A of the 
Listing Rules. 

 
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

"CDC"		              China Datang Corporation, a State-owned enterprise established 
                                under the laws of the PRC and is a controlling Shareholder of 
                                the Company pursuant to the Listing Rules which, together with 
                                its subsidiaries, hold approximately 34.71% of the issued share 
                                capital of the Company as at the date of this announcement 

"Changheba Hydropower Project"  the Sichuan Dadu River Changheba Hydropower Station Project
		
"connected person"              has the meaning ascribed to it under the Listing Rules
		
"connected transaction"         has the meaning ascribed to it under the Listing Rules

"Datang Finance Company"        Datang Corporation Finance Limited Company, a subsidiary of 
                                CDC, details of which are set out in the section entitled 
                                "Information relating to the Parties to the Agreement" in 
                                this announcement

"Director(s)"                   the director(s) of the Company

"Entrusted Loan"                the entrusted loan of a principal amount of RMB300 million

"Entrusted Loan Agreement"      the entrusted loan agreement entered into on 19 December 2013 
                                between the Company, Ganzi Hydropower Company and Datang Finance 
                                Company in respect of the Entrusted Loan Arrangement
                               
"Entrusted Loan Arrangement"    the arrangement where Datang Finance Company is designated by 
                                the Companyto act as the lending agent to lend the Entrusted 
                                Loan to Ganzi Hydropower Company pursuant to the Entrusted 
                                Loan Agreement
                               
"Financial Services Agreement   the agreement entered into between the Company and Datang Finance  
 (2011-2013)"                   on 26 October 2010, details of which are set out in the 
                                announcement dated 16 November 2010
                
"Financial Services Agreement   the agreement entered into between the Company and Datang Finance 
(2014-2016)"                    on 15 October 2013, details of which are set out in the announcement 
                                dated 5 November 2013
		                
"Ganzi Hydropower Company"      Sichuan Datang International Ganzi Hydropower Development Co., Ltd., 
                                a controlling subsidiary of the Company, details of which are set out 
                                in the section entitled "Information relating to the Parties to the 
                                Agreement" in this announcement               
                                
"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

"Huangjinping Hydropower        the Sichuan Dadu River Huangjinping Hydropower Station Project
Project"
		
"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, 19 December 2013

As at the date of this announcement, the Directors of the Company are: Chen Jinhang, Hu Shengmu, 
Cao Jingshan, Fang Qinghai, Zhou Gang, Li Gengsheng, Cao Xin, Cai Shuwen, Liu Haixia, 
Guan Tiangang, Dong Heyi*, Ye Yansheng*, Li Hengyuan*, Zhao Jie*, Jiang Guohua*

* Independent non-executive Directors