Huaneng Power International, Inc. or the is pleased to announce that it entered into an equity transfer agreement with the shareholders of Fushun Suzihe Hydropower Co., Ltd. to acquire 100% equity interest in the Target Company with a consideration of RMB50 million. The shareholders of the Target Company are all third parties to the Company.
The Target Company has a registered and paid-in capital of RMB50 million. It is the legal owner of Suzihe Yaojiashan Hydropower Project (the “Project”) of Liaoning Province. The Project, with a planned hydropower capacity of 37.5 MW (3 x 12.5 MW), has been approved by Liaoning Development and Reform Commission and is under construction. It is a mediumsized multi-purpose water resources and hydropower key project with the main purpose of power generation which also takes into account flood control and irrigation functions. The project is expected to commence operation by the end of 2011.The Target Company is also conducting preparatory work for another project in the Suzihe river area.
The Company believes that the acquisition of the 100% equity interest in the Target Company will help the Company develop hydropower market in the Suzihe river area, improve its existing power generation structure in Liaoning Province, contribute to increase in utilization of clean energy, and enhance competitiveness of the Company.