Jun 9 2008
Hong Kong Energy, a wholly-owned subsidiary of HKC (Holdings) Limited, is pleased to announce that approval has been obtained from the Development and Reform Commission of Siziwang Qi for the rights to build and operate a 50MW wind power project in the region subsequent to the application made on 21 April 2008. The total investment will amount to approximately RMB 480.5 million (HK$540.2 million) which will be funded by the Company's internal resources and/or bank borrowings.
For the purpose of constructing the wind farm, the Company has entered into 2 contracts of purchasing 33 sets of wind turbine and turbine tower with an aggregate value of approximately RMB349.8 million (approximately HK$393.2 million). It is expected further contracts will be entered for acquisition of other wind power generation equipments for the project.
Mr. Eric Oei, Chairman and Chief Executive Officer of HKE (HOLDINGS) said, "It is encouraging to see the first project being approved so smoothly and quickly following the formal establishment of HKE (HOLDINGS) in May 2008, reflecting HKE (HOLDINGS)'s ability to execute projects undertaken. We are confident that the development of our alternative energy business will be on track with our planned schedule and HKE (HOLDINGS) will continue to act as a strategic and effective platform for HKC (HOLDINGS) to execute its alternative energy projects in the years to come."
"HKC (HOLDINGS) has previously obtained the preferential right to develop a wind power project in Siziwang Qi. This further approval obtained by HKE (HOLDINGS) in the same area is sure to bring synergy for developing its alternative energy business, and also kick starts many opportunities, leading to the increased revenue and income growth for the Company ahead." Mr. Oei continued.
The Inner Mongolia Autonomous Region is one of the regions in the PRC with abundant wind energy resources, particularly in the Siziwang Qi region. There the average annual wind speed reaches over 8.0m/second at a height of 60-70 metres and its average annual full-loaded equivalent operation hours exceeds 2,500, indicating a grade I wind farm according to a wind resources survey report.