Fujian Dachuang will buy the 16MW hydroelectric project located in Fujian province, for total consideration of $22m, including the assumption of debt by the buyer.
The sale of the project is expected to close in early 2012 and will result in a small profit to the company.
China Hydroelectric chairman and CEO John Kuhns said the transaction the company believes this transaction to sell one of its operating assets at a gain and to simultaneously reduce the company’s debt levels is in the company’s best interests.
China Hydroelectric is an owner and operator of small hydroelectric power projects in China.
