Under the agreement, the Huaxian government has granted to China Power the exclusive right to develop and construct a 50MW biomass power plant and the land rights for up to 133,400sqm of land.
Huaxian has also guaranteed China Power financing for up to 65% of the RMB580 million needed by China Power through a local bank at a preferred interest rate for the construction and development of the plant.
The agreement also specifies that 100% of the power generated by the plant will be purchased by China State Grid at a purchase price of between RMB0.60 and RMB0.65 per kW.
China Power’s rights under the construction agreement are exclusive and it has committed to invest up to RMB580 million towards the development of the power plant.
