China Hydroelectric Corporation is set to acquire additional hydroelectric projects totaling 78 MW in Yunnan province with the signing of a definitive agreement for acquiring an operating hydroelectric project with a generating capacity of 44 MW. The company is also proposing to acquire additional two operating hydroelectric power projects totaling 34 MW of generating capacity and has entered into memoranda of understandings for that purpose.
China Hydroelectric Corporation will acquire the Xiaopengzu project through the definitive agreement for a price of US $57 million (RMB 390 million), partly through cash and partly through refinancing of an existing non-recourse debt. An exclusive right is provided for the company through the memoranda of understanding to carry out its due diligence of two operating hydroelectric power projects in the Yunnan province. The company is anticipating signing definitive agreements for these two projects after the due diligence.
Chairman & CEO John D. Kuhns of China Hydroelectric Corporation, said the company is delighted to sign the memoranda of understanding and the definite agreement to acquire additional hydroelectric projects in the Yunnan province, where China Hydroelectric Corporation already owns and operates 43 MW of generating capacity. The company plans to purchase operating hydroelectric projects with generating capacity totaling about 250 MW during 2010 first half and these transactions constitute Phase I of its plan, Kuhns said.