New York City, February 16, 2010 — China Hydroelectric Corp. agreed to acquire a 44 MW operating hydroelectric project in China’s Yunnan Province.
The company also entered into preliminary agreements to acquire two more operating hydroelectric power projects totaling 34 MW in Yunnan Province.
Together these agreements present the company with the opportunity to acquire an additional 78 MW of hydropower generating capacity in Yunnan Province.
China Hydroelectric is a consolidator, developer and operator of small hydroelectric power projects in the People’s Republic of China.
The first agreement provides for the company to acquire the Xiaopengzu project in Yunnan Province for a purchase price of $57 million, to be financed partially through cash on hand and through the assumption or refinancing of existing non-recourse debt. The acquisition is subject to customary closing conditions, including obtaining governmental approval.
The remaining two agreements provide the company with an exclusive right to pursue its due diligence of two additional operating hydroelectric projects in Yunnan.
Subject to the satisfactory completion of its due diligence review, the company expects to enter into definitive agreements to acquire these projects in the near term.
China Hydroelectric owns twelve operating hydropower projects in China with total installed capacity of 377 MW. In addition, CHC recently expanded operations through the acquisition, pending government approval, of development rights to a 1,000 MW pumped storage hydropower plant in Henan.