Connected Transaction

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the whole or any part of the contents of thisannouncement.

                  DATANG INTERNATIONAL POWER GENERATION CO., LTD.
   (a sino-foreign joint stock limited company incorporated in the People's    
                              Republic of China)                               

                               (Stock Code: 991)                               

                                 ANNOUNCEMENT                                  

                             CONNECTED TRANSACTION                             

FINANCE LEASE AGREEMENT                                                        
                                                                               
The Board is pleased to announce that on 10 September 2010, Datang Shipping, a 
controlling subsidiary of the Company, entered into the Finance Lease Agreement
with Datang Finance Company, pursuant to which Datang Finance Company shall    
provide a financial lease at a principal of RMB280 million to Datang Shipping  
for the building of the new Vessel and the commencement of business operation  
as soon as possible in order to effectively strengthen its shipping capacity.  
                                                                               
CONNECTED TRANSACTION                                                          
                                                                               
As at the date of this announcement, Datang Shipping is a controlling          
subsidiary of the Company which owns 97.54% of its issued share capital. CDC   
and its subsidiaries hold approximately 36.07% of the issued share capital of  
the Company. Since CDC holds 52.5% of the issued share capital of Datang       
Finance Company, Datang Finance Company is a connected person of the Company   
under the Listing Rules and the transaction under the Finance Lease Agreement  
constitutes a connected transaction of the Company.                            
                                                                               
As each of the applicable percentage ratios (as defined in Rule 14.07 of the   
Listing Rules) is more than 0.1% but less than 5%, the transaction under the   
Finance Lease Agreement is subject to the reporting and announcement           
requirements under Rules 14A.45 to 14A.47 of the Listing Rules and does not    
require the approval by the independent shareholders of the Company under      
Chapter 14A of the Listing Rules.                                              

BACKGROUND

As at the date of this announcement, Datang Shipping is a controlling
subsidiary of the Company, and is responsible for the transportation of thermal
coal from Qinhuangdao (or other northern ports) to the coastal power plants of
the Company at areas including Chaozhou of Guangdong (or Ningde of Fujian). As
at the date of this announcement, Datang Shipping owns two 70,000-tonne bulk
carriers, namely "Datang No. 1" and "Datang No. 2". In order to ease the
pressure upon fuel coal transportation capacity of the Company's coastal power
plants, maintain stability on thermal coal transportation costs and enhance
transportation assurance, Datang Shipping captures the favourable opportunity
in the shipbuilding market for expanding shipping capacity at low costs and has
signed the relevant shipbuilding agreements for the building of four new
45,000-tonne cargo carriers and two 76,000-tonne cargo carriers.

Datang Shipping entered into the Finance Lease Agreement with Datang Finance
Company on 10 September 2010, pursuant to which Datang Shipping agreed to
secure finance lease from Datang Finance Company for a principal of RMB280
million for a term of 15 years; i.e., Datang Finance Company shall purchase the
Vessel as designated by Datang Shipping from the shipbuilder as designated by
Datang Shipping, and lease the Vessel to Datang Shipping for use. Pursuant to
the Finance Lease Agreement, Datang Shipping shall pay rent to Datang Finance
Company during the term of the Finance Lease Agreement. Through the finance
lease, Datang Shipping will be able to build the new Vessel and commence the
business operation as soon as possible in order to effectively strengthen its
shipping capacity.

FINANCE LEASE AGREEMENT

Date

10 September 2010

Parties

Datang Shipping; and

Datang Finance Company.

Major terms and pricing standard

1. Leased property: the Vessel (one newly built 76,000-tonne cargo carrier).
   
2. Leasing principal: RMB280 million (such principal is arrived at after arm's
   length negotiation between Datang Shipping and the shipbuilder of the Vessel
   with reference to the price of building a similar cargo carrier in the market).

3. Leasing interest rate: at a floating rate and which is 10% below the
   benchmark interest rate for loans for the same period as published by the
   People's Bank of China.

4. Leasing method: based on the shipbuilder and the Vessel (including but not
   limited to the design, tonnage, specifications, materials, construction
   equipment, etc. of the Vessel) designated by Datang Shipping, Datang Finance
   Company shall purchase the Vessel from the shipbuilder, and lease the Vessel
   back to Datang Shipping for use.

5. Leasing term:

   (i)    Leasing term: the leasing term shall be divided into construction
          period and operation period for a total term of 15 years;
   
   (ii)   Construction period: the construction period shall commence from the
          lease commencement date, i.e., the date Datang Finance Company pays the
          first installment for the leasing of the Vessel to the shipbuilder or to
          the material supplier, and end on the date on which the "Agreement on 
          the Handover of Vessel" is entered into by Datang Finance Company, 
          Datang Shipping and the shipbuilder and which shall not be later than 31 
          October 2012; and
   
    (iii) Operation period: the operation period shall commence from the day
          following the end of the construction period and which shall not be 
          later than 1 November 2012.
   
6. Rent and payment method:

    (i)   Rent: rent under the Finance Lease Agreement includes (i) the leasing
          interest payable by Datang Shipping to Datang Finance Company during the
          construction period; and (ii) the rent (including principal and leasing
          interest) payable by Datang Shipping to Datang Finance Company during
          the operation period;
   
    (ii)  Leasing interest during the construction period: the leasing interest
          shall be calculated basing on the amount of payment for the Vessel and 
          the time of making the payment. Such leasing interest is payable by 
          Datang Shipping on the 21st day of the last month of each quarter during 
          the construction period. The annual leasing interest rate shall be a 
          floating interest rate and which is 10% below the benchmark interest 
          rate for loans for the same period as stipulated by the People's Bank of
          China. The annual leasing interest rate is 5.346% as at the date of the 
          Finance Lease Agreement. The total leasing interest payable by Datang 
          Shipping during the construction period is approximately RMB11.6673 
          million based on this annual leasing interest rate; and
   
    (iii) Rent during the operation period: the rent is payable by Datang Shipping
          on a quarterly basis. The first installment of rent for the Vessel shall
          be payable on the 21st day of the second month from the month in which 
          the operation period commences, and the subsequent installment of rent 
          shall be payable on the corresponding day of every three months 
          thereafter. The annual leasing interest rate shall be a floating 
          interest rate and which is 10% below the benchmark interest rate for 
          loans for the same period as stipulated by the People's Bank of China. 
          The annual leasing interest rate shall be 5.346% as at the date of the 
          Finance Lease Agreement. The total leasing interest payable by Datang 
          Shipping during the operation period is approximately RMB108.6499 
          million based on this annual leasing interest
          rate, and the total of the leasing interest and the leasing principal
          during the operation period amounts to approximately RMB388.6499 
          million.
   
7. Ownership of the Vessel:

    (i)   the Vessel is owned by the shipbuilder during the construction period of
          the term of the Finance Lease Agreement;
   
    (ii)  the Vessel is owned by Datang Finance Company during the operation period
          of the term of the Finance Lease Agreement; and
   
    (iii) upon expiry of the term of the Finance Lease Agreement, the Company shall
          have the right to purchase the Vessel at a nominal price of RMB1.00.
   
8. Condition for effecting the Finance Lease Agreement: the Finance Lease Agreement 
   shall become effective from the date of execution of the Finance Lease Agreement.

INFORMATION RELATING TO DATANG SHIPPING

Datang Shipping was incorporated on 6 September 2007, with a registered capital
of RMB264.90 million. Its scope of business includes general cargo freighter
transportation, chartering of vessels, freight forwarding and cargo warehousing
along the coast of China and in the mid-stream and downstream of Yangtze River
and the Pearl River Delta. The Company owns 97.54% of its equity interest.

As at 31 December 2009, Datang Shipping's total assets amounted to RMB624.2061
million. In 2009, accumulated sales revenue amounted to RMB73.1575 million and
accumulated net profit was RMB-36.9804 million (audited).

INFORMATION RELATING TO THE COMPANY

The Company, with its main service areas in the PRC, is principally engaged in
the construction and operation of power plants, the sale of electricity and
thermal power, and the repair, testing and maintenance of power equipment and
power-related technical services.

INFORMATION RELATING TO DATANG FINANCE COMPANY

Datang Finance Company is established in the PRC as a non-banking financial
institution. The registered capital of Datang Finance Company is RMB1,600
million. The principal business of Datang Finance Company includes the
provision of, among others, deposit services, loan services, entrusted loan
services and entrusted investment services.

Net profits before and after taxation and extraordinary items for the year
ended 31 December 2009 were RMB233,854,235.90 and RMB176,880,227.22,
respectively (audited).

REASONS FOR AND BENEFITS OF ENTERING INTO THE FINANCE LEASE AGREEMENT

The Company considers that the entering into of the Finance Lease Agreement
enables Datang Shipping to grow and expand further, which is conducive to
easing the pressure of transportation capacity of fuel coal for the Company's
coastal power plants, thereby maintaining stability on thermal coal
transportation costs and enhancing transportation assurance of the Company.

Since the finance lease provided by Datang Finance Company under the Finance
Lease Agreement is secured at a leasing interest rate 10% below the benchmark
interest rate for loans for the same period as published by the People's Bank
of China and no security deposit or handling fee is to be charged by Datang
Finance Company, the financing costs of Datang Shipping will therefore be
reduced. Moreover, the relatively long finance lease term can ease the
financial pressure caused by the repayment of the principal and interests
thereon during the initial operation period of the Vessel, thereby effectively
preventing the risks associated with corporate debt.

The Finance Lease Agreement is entered into under normal business terms. The
Directors and independent Directors are of the view that the relevant terms of
the Finance Lease Agreement are fair and reasonable and are in the interest of
the Company and the Shareholders as a whole.

CONNECTED TRANSACTION

As at the date of this announcement, Datang Shipping is a controlling
subsidiary of the Company which owns 97.54% of its issued share capital. CDC
and its subsidiaries hold approximately 36.07% of the issued share capital of
the Company. Since CDC holds 52.5% of the issued share capital of Datang
Finance Company, Datang Finance Company is a connected person of the Company
under the Listing Rules and the transaction under the Finance Lease Agreement
constitutes a connected transaction of the Company.

As each of the applicable percentage ratios (as defined in Rule 14.07 of the
Listing Rules) is more than 0.1% but less than 5%, the transaction under the
Finance Lease Agreement is subject to the reporting and announcement
requirements under Rules 14A.45 to 14A.47 of the Listing Rules and does not
require the approval by the independent shareholders of the Company under
Chapter 14A of the Listing Rules.

BOARD'S APPROVAL

The Board has approved the Finance Lease Agreement on 19 August 2010. Since Mr
Zhai Ruoyu, the then director of the Company, Mr Hu Shengmu and Mr Fang
Qinghai, the directors of the Company, are the management personnel of CDC,
they have abstained from voting at the relevant Board meeting to approve the
Finance Lease Agreement.

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. CDC and its subsidiaries own   
                             approximately 36.07% 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             
                                                                               
"Datang Finance              China Datang Finance Co., Ltd. is a controlling   
Company"                     subsidiary of CDC. CDC holds 52.5% of the shares  
                             of Datang Finance Company as at the date of this  
                             announcement                                      
                                                                               
"Datang Shipping"            Jiangsu Datang Shipping Co., Ltd., a controlling  
                             subsidiary of the Company                         
                                                                               
"Director(s)"                the director(s) of the Company                    
                                                                               
"Finance Lease               the finance lease agreement dated 10 September    
Agreement"                   2010 entered into between Datang Shipping and     
                             Datang Finance Company in relation to the         
                             provision of a financial lease by Datang Finance  
                             Company to Datang Shipping at a principal of      
                             RMB280 million for a term of 15 years, the details
                             of which are set out in this announcement         
                                                                               
"Listing Rules"              The Rules Governing the Listing of Securities on  
                             the Stock Exchange                                
                                                                               
"RMB"                        Renminbi, the lawful currency of the PRC          
                                                                               
"Shareholders"               the shareholders of the Company                   
                                                                               
"Stock Exchange"             The Stock Exchange of Hong Kong Limited           
                                                                               
"Vessel"                     a 76,000-tonne bulk carrier as designated by      
                             Datang Shipping and is the subject matter of the  
                             Finance Lease Agreement                           
                                                                               
"%"                          per cent                                          

                                                          By Order of the Board
                                                                Zhou Gang
                                                          Secretary to the Board

Beijing, the PRC, 10 September 2010

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