Continuing Connected Transactions

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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
                              CONTINUING CONNECTED TRANSACTIONS

FRAMEWORK AGREEMENT FOR CONSTRUCTION MATERIALS PURCHASE

On 8 January 2014, the Company entered into the Framework Agreement for Construction 
Materials Purchase with China Water Resources and Power in connection with the 
centralised purchase of machinery, equipment and materials required for project 
construction through China Water Resources and Power.

LISTING RULES IMPLICATIONS

As at the date of this announcement, CDC and its subsidiaries hold a total of 
approximately 34.71% of the issued share capital of the Company. As China Water 
Resources and Power is a wholly-owned subsidiary of CDC, China Water Resources and 
Power is therefore a connected person of the Company under Chapter 14A of the 
Listing Rules. The transactions contemplated under the Framework Agreement for 
Construction Materials Purchase constitute continuing connected transactions of the 
Company. 

As each of the applicable percentage ratios (as defined in Rule 14.07 of the Listing
Rules) of the Framework Agreement for Construction Materials Purchase is more than 
0.1% but less than 5%, such transactions are only subject to the reporting and 
announcement requirements, but do not require the approval by the independent 
shareholders of the Company under Chapter 14A of the Listing Rules.

BACKGROUND

In order to regulate and enhance the management of purchase of project materials and
to leverage bulk purchase advantages, the Company and China Water Resources and 
Power entered into the Framework Agreement for Construction Materials Purchase on 
8 January 2014 to centralise the purchase of machinery, equipment and materials 
required for project construction so as to enhance quality of purchase and lower 
purchase costs, thereby enhancing the profitability of the Company.

FRAMEWORK AGREEMENT FOR CONSTRUCTION MATERIALS PURCHASE

Date

8 January 2014

Parties 

(i)     The Company; and
(ii)    China Water Resources and Power

Subject Matter

1.  China Water Resources and Power agreed to conduct centralised purchase of 
    project construction machinery, equipment and materials required for project
    construction in accordance with the demands ofthe Company and its 
    subsidiaries for project construction machinery,equipment and materials. The
    selling prices of such project construction machinery, equipment and 
    materials offered by China Water Resources and Power shall not be higher 
    than the prevailing average market prices of such project construction 
    machinery, equipment and materials. 

2.  According to the actual demands of the Company and its subsidiaries,China 
    Water Resources and Power will conduct tender of materials purchase in 
    accordance with relevant laws and regulations of the State. The process of 
    purchase tender conducted by China Water Resources and Power will be under 
    the supervision of the Company. 

3.  Pursuant to the tender results, the Company and its subsidiaries will enter 
    into specific purchase contracts with China Water Resources and Power and 
    such purchase contracts shall be consistent with the terms and principles of
    the Framework Agreement for Materials Purchase.


Term 

The term of the Framework Agreement for Construction Materials Purchase is from 1 
January 2014 to 31 December 2014. 

The Company confirms that no transaction under the Framework Agreement for 
Construction Materials Purchase was conducted for the period from 1 January 2014 to 
the date of this announcement.

Fee Standard and Calculation

During the course of centralised purchase, China Water Resources and Power 
will be responsible for the coordination of tenders invitation, contract signing and
the implementation thereafter, transportation, examination of arrival goods and 
claims submission, etc. As such, China Water Resources and Power will charge 
a management service fee (the relevant management fee shall not be higher than
6% of the purchase amount). Such management service fee is determined after 
arm's length negotiation between the parties taking into account the management
service fee to be charged for the provision of similar services by other independent
cooperating service providers. The relevant management service fee to be 
charged by China Water Resources and Power shall not be higher than the fee to
be charged by China Water Resources and Power for the provision of similar 
services to other independent third parties and CDC.

China Water Resources and Power will issue a value-added tax invoice 
comprising the purchase amount and the management service fee to the Company
and its subsidiaries. 

Annual Cap

Taking into account the requirement of project construction machinery, equipment
and materials applicable for centralised purchase which are used in the 
construction of infrastructure projects of the Company and its subsidiaries for the 
year ending 31 December 2014, the continuing connected transactions contemplated 
under the Framework Agreement for Construction Materials Purchase are subject to an 
annual cap of RMB700 million (including the purchase costs for the project 
construction machinery, equipment and materials and the management service fees 
payable to China Water Resources and Power) for the year ending 31 December 2014. 

 
Historical Figures

The transaction amount of materials for project construction purchased by the 
Company and its subsidiaries from China Water Resources and Power for the year ended
31 December 2013 was approximately RMB782 million.

The transaction amount of materials for project construction purchased by the 
Company and its subsidiaries from China Water Resources and Power for the year ended
 31 December 2012 was approximately RMB106.299 million.

The Company did not carry out any similar transactions with China Water Resources 
and Power in the year ended 31 December 2011.

INFORMATION OF PARTIES RELATING TO THE FRAMEWORK AGREEMENT FOR CONSTRUCTION 
MATERIALS PURCHASE

1.  The Company was established in December 1994 and is principally engaged in 
    the construction and operation of power plants, the sale of electricity and 
    thermal power, the repair and maintenance of power equipment and power 
    related technical services. The Group�s main service areas are in the PRC.

2.  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, organisation 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.  

3.  China Water Resources and Power is a wholly-owned subsidiary of 
    CDC which was established on 6 March 1989. Its core businesses 
    include acting as agent for tenders invitation and import, pipe supplies, 
    project consultation, spare parts, equipment supervision, management 
    of project materials resources, CDM, safety evaluation, and so forth.

REASONS FOR AND BENEFITS OF ENTERING INTO THE FRAMEWORK AGREEMENT FOR CONSTRUCTION 
MATERIALS PURCHASE

After taking into account the necessity for lowering purchase costs and successful
completion of the Company's infrastructure project materials purchase tasks during
the year, the Company entered into the Framework Agreement for Construction 
Materials Purchase to leverage on the role of China Water Resources and Power 
as a professional institution in sourcing construction project machinery, equipment
and materials, and to leverage on the advantage of bulk purchasing, in order to 
enhance purchase quality, lower purchase costs, and increase the profitability of 
the Company.

The Directors (including the independent non-executive Directors) are of the view
that the continuing connected transactions under the Framework Agreement for 
Construction Materials Purchase are conducted in the ordinary and usual course 
of business of the Company, and are fair and reasonable and are in the interest of 
the Company and the shareholders as a whole. 

LISTING RULES IMPLICATIONS

As at the date of this announcement, CDC and its subsidiaries hold a total of 
approximately 34.71% of the issued share capital of the Company. China Water 
Resources and Power is a wholly-owned subsidiary of CDC and accordingly is a 
connected person of the Company under Chapter 14A of the Listing Rules. The 
transactions contemplated under the Framework Agreement for Construction 
Materials Purchase constitute continuing connected transactions for the Company. 

As each of the applicable percentage ratios (as defined in Rule 14.07 of the Listing
Rules) of the Framework Agreement for Construction Materials Purchase is more 
than 0.1% but less than 5%, such transactions are only subject to the reporting 
and announcement requirements, but do not require the approval by the 
independent shareholders of the Company under Chapter 14A of the Listing Rules.

BOARD'S APPROVAL 

None of the Directors have any material interest in the transactions under the 
Framework Agreement for Construction Materials Purchase. 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 the Shanghai Stock 
Exchange.

DEFINITIONS

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

"Board"                           the board of Directors

"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 

"China Water Resources and Power" China National Water Resources & Electric 
                                  Power Materials & Equipment Corporation

"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

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

"Framework Agreement for 
Construction Materials Purchase"  the framework agreement for centralised 
                                  purchase of project construction machinery, 
                                  equipment and materials entered into between
                                  the Company and China Water Resources and 
                                  Power dated 8 January 2014 

"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 

"Stock Exchange"                  The Stock Exchange of Hong Kong Limited



                                                              By Order of the Board
                                                                    Zhou Gang
                                                             Secretary to the Board

           
Beijing, the PRC, 8 January 2014

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