22 Aug 2010
Everbright International Secures A Wind Power Project
Marks the Beginning of Wind Power BusinessChina Everbright International Limited ("Everbright International" or the "Group") is pleased to announce that the Group has reached an agreement ("the Agreement") with Muping District Government of Yantai City in Shandong Province in relation to the wind power project in Jiangge garden of Muping District. This is the first approved project after signing of the "Cooperative Framework Agreement" with Yantai Municipal People's Government in June 2010. This Agreement marks the group's breakthrough in wind power project.
Leveraged on its existing strategic development areas, the Group has been striving to enter the wind power market since last year. After evaluation, the northern coastal areas of Shandong Peninsula are found to have rich wind resources. The Group has reached the agreement with Muping District Government to build a wind power plant within a 8km² area in Jiangge garden. The estimated scale will be 20MW to 30MW with a total investment between RMB 200 million to 300 million.
The national and local governments have placed great support on wind power projects, in particular the Shandong Provincial Government will allocate a special fund of RMB1.2 billion in the next three years, with an aim to expand the scale of alternative energy sector. Besides, the State Taxation Bureau offers tax incentives to wind power companies, under which 50% of the value-added tax paid for wind power projects is eligible for immediate refund after payment.
Mr. Chen Xiaoping, the Chief Executive Officer of Everbright International, said, " We intend to develop a suitable business model, a well established management and engineering team for the alternative energy sector through the execution of Muping Project, and thus build a solid foundation for future expansion in the wind power market. In addition, Yantai City is a key developing market of the Group this year, besides undertaking the project in a high efficient and pragmatic manner, the Group will continue to strengthen the development of other environmental protection and alternative energy projects, in order to help Yantai City in its effort on energy saving and emission reduction.