The initial contract entered between A-Power and Inner Mongolia Wulahot Hengwang Heat & Electricity Generation Company (Hengwang) was for the construction of a 300MW stand-alone distributed power generation facility for a new development zone located in Inner Mongolia. With the increased value of this contract, A-Power’s backlog has increased to $566 million.
As a result of the decision by the Inner Mongolian government authorities to enlarge the size of the development zone area, Hengwang has decided to increase the size of the planned distributed power generation facility from 300MW to 400MW. The construction of this new facility is expected to be completed in January 2010.
Jinxiang Lu, A-Power’s chairman and CEO, said: The Hengwang project is a significant project for A-Power and is the first of many large distributed power generation projects we expect to receive in Inner Mongolia and other rural areas of China. By producing power at a local level, our distributed power generation systems eliminate the need for the state-owned utilities to string new power lines over hundreds of miles to reach these new developments.
