The company executed a definitive agreement for this acquisition in May 2010. This purchase provides for the addition of three projects – the Aluhe project, with an installed capacity of 12.6MW; the Latudi project, with an installed capacity of 18.9MW; and the Zilenghe project, with an installed capacity of 24MW.
Pursuant to a loan framework agreement with the Bank of China’s Fujian Branch, approval for a $13.2m loan, which will assist in financing the acquisition, has been granted for the acquisition of the Latudi project. The company is also currently seeking to finalize lending arrangements for the other two projects, Aluhe and Zilenghe.
The company said that it continues to work towards the consummation of pending acquisition of the 44MW Xiaopengzu project, also in Yunnan province, as well as on finalizing the acquisition of the Taiyu projects for which the company has entered into a memorandum of understanding.
China Hydroelectric has made down payments with respect to the Taiyu projects memoranda, which include penalties to the sellers for cancellation. Subject to the satisfactory completion of its due diligence review, the company expects to enter into definitive agreements to acquire and finance these projects in the near term.
