CECIC Signs Deal with HKC for Joint Venture in Hebei

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Researched by Industrial Info Resources (Sugar Land, Texas). The establishment of CECIC Wind Power Generation (Zhangbei) Company, Limited, the largest Sino-foreign joint venture wind power generation enterprise in Hebei province, received approval from the Ministry of Commerce recently, and the preliminary business registration formalities for the joint venture was completed at Hebei Provincial Industry and Commerce Administration on July 17, 2007.

The newly established company is jointly invested by CECIC Wind Power Generation Company, Limited, a subsidiary of China Energy Conservation Investment Corporation (CECIC), the only national-level investment company in energy conservation and environmental protection sector in China and a large-scale central enterprise directly under the State Assets Supervision and Management Commission of the State Council, and Hong Kong New Energy (Holdings), Limited, a subsidiary of Hong Kong Construction (Holdings), Limited (HKC) (0190.HK). In the bidding organized by the National Development and Reform Commission (NDRC) for the franchise right of Zhangbei Danjinghe Wind Power Project in 2006, the consortium of both parties won the bid.

The joint venture will be responsible for the development and operation of Zhangbei Danjinghe Wind Power Project. Construction scale of the project is 200 megawatts (MW); annual design power output 440 million kWh. Total investment is about $210 million, including approximately $29 million of foreign investment. According to an announcement made by HKC, the company will invest 40% of the capital by cash, and the franchise operation period of the project will be 25 years.

Zhangbei County, the location of the project, hereby becomes the largest “wind power county” in China at present. By the end of 2004, the county signed a total of 5,000 megawatts of wind power development agreements with related enterprises, with the agreement development area with CECIC reaching 2,180 square kilometers. The project will become the largest foreign-invested wind power project in Hebei province, and become the inception project of the first 1,000 MW wind power base in China.

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