China Hydroelectric to acquire 55.4 MW projects

China Hydroelectric Corporation will acquire a controlling interest in a total of 55.4 gross MW of operating installed capacity in Fujian province.

The company owns small hydroelectric power projects in China.

This acquisition is the first phase of the previously announced Taiyu Projects acquisition for a controlling interest in seven operating hydroelectric power projects, representing a total of 114.4 MW.

This first phase of the Taiyu Projects acquisition consists of controlling interest in the following five operating projects: a 74 percent interest in the 16MW Jinwei project; a 74 percent interest in the 11.6 MW Jintang project; a 55 percent interest in the 10 MW Jinlong project a 100 percent interest in the 13MW Qianling project; and a 100 percent interest in the 4.8 MW Dongguan project. These five projects represent a combined total of 55.4 gross MW of the total of 114.4 gross MW for the Taiyu Projects.

The definitive agreement provides for the company to acquire this first phase for a purchase price of $61.3 million. This acquisition, which is expected to be consummated shortly, is expected to be financed through cash on hand and bank financing.

The company continues to work towards finalizing the acquisition of the second phase of the Taiyu Projects for which the company has entered into memoranda of understanding.