The LOI further provides for the right of first refusal on a preliminarily approved wind farm where potential developable assets at Ningxia total 1GW (inclusive of the initial 50MW wind farm).
The LOI includes provisions for Far East Wind’s ownership interest in the wind farm to be structured as a Sino-foreign joint venture of 49% with the local Chinese partner to own 51% of the project.
Additionally, Far East Wind plans to undertake to fund up to $20m of the development costs and the local Chinese partner will execute its business plan and work to obtain all necessary remaining permitting and authorizations for the wind farm, and to secure low interest rate bank debt financing of up to $70m.
James Crane, CFO of Far East Wind, said: “Chinese state-owned enterprises are developing wind farms but there is not enough development to meet China’s stated renewable energy goals and many entrepreneurs in China are attempting to enter the wind farm marketplace.
“We are working with these entrepreneurs to provide them with capital and refine their business plans so that as partners we can develop assets that will generate substantial cash flow for each partner for many years to come.”
