(The Insider Stories) – China Power Investment Corp. (CH:CPIZ) plans to build a total of 7,000 megawatts of hydro power capacity in Kayan, North Kalimantan province and will invest US$17 billion over the space of seven years starting 2014.

Energy minister Jero Wacik says after meeting China Power's Vice Presiden Xia Zhong that the project will be developed in five stages, with the first stage consisting of 700 megawatts with a total investment IDR1.5 trillion.

The development will supply electricity to state-owned electricity provider PT Perusahaan Listrik Negara by 2015. China Power also plans to jointly build a smelter for bauxite with a local partner. 

China Power is the the biggest government-owned power provider in China and manages plants with total capacity of 80,074 megawatts as well as producing 74.1 million tons of coal a year and 2.77 million tons of aluminium a year.

It has hydro power projects in Myanmar with total capacity that will reach 6,000 megawatt by 2017.