The arrangement will enable SPG to secure 14% of debt financing through CMEC valuing $260m from banks and other financial institutions in China for Spinning Star Energy which will own, develop and operate the wind farm.
Under the LOI, SPG will appoint CMEC as the engineering, procurement and construction (EPC) contractor which will procure equipment from suppliers designated by SPG.
SPG and CMEC will finalize multiple agreements to create binding obligations later this month after further discussions and negotiations.
A-Power Energy Generation Systems owns a 19.5% interest in SPG while Spinning Star is a joint venture company owned by the US renewable energy group Wind Partners and SPG.
