Temasek said in a statement it has signed a share purchase agreement with SinoSing Power Pte Ltd, a wholly owned subsidiary of China Huaneng Group, for the sale of Tuas Power Ltd.

The transaction is expected to be completed by March 24, said Temasek, which is selling all three power generation firms under its stable as part of efforts to liberalise the domestic energy market.

Beijing-based China Huaneng is China's largest power generation company and owns a 50 per cent stake in Australian power generation joint venture-firm OzGen, Temasek said in a statement.

It has an installed capacity of 71,000 megawatts and total assets for the group exceeds 45 billion US dollars (S$62.34 billion).

Tuas Power, with a capacity of 2,670 megawatts, accounted for 26 per cent of the electricity sold in Singapore last year. Its sale completed a bidding process that began in October.

Temasek's two other power generating companies are Power Seraya, which has a capacity of 3,100 megawatts, and Senoko Power, which can generate 3,300 megawatts. They are to be sold sequentially after the sale of Tuas Power.

'China Huaneng is an established player with a strong track record in the power business. Its proposal through SinoSing was the most attractive,' said Temasek managing director for investments Wong Kim Yin.

'It emerged as the winner based on clear considerations of price and acceptable commercial terms.'

Mr Huang Long, vice-president of China Huaneng, said the transaction was a major step for his company 'in its goal to diversify its assets across geographies and technologies'.

Temasek manages a diversified global portfolio of more than 160 billion Singapore dollars.

Its portfolio covers industries such as telecommunications and media, financial services, real estate, transportation and logistics. -- AFP