Far East to Acquire Rights in Chinese Wind Farm

24 August 2010 (Last Updated August 24th, 2010 18:30)

Far East Wind Power will acquire rights to a wind farm located in Yunnan Province, China, under a letter of intent (LOI). Initially, a 49.5MW wind farm will be developed and will potentially generate $11.8m in revenues on an annualised basis if fully utilised. FEWP will fund u

Far East Wind Power will acquire rights to a wind farm located in Yunnan Province, China, under a letter of intent (LOI).

Initially, a 49.5MW wind farm will be developed and will potentially generate $11.8m in revenues on an annualised basis if fully utilised.

FEWP will fund up to $20m for development and has an agreement with Taitong that the amount will be repaid if the wind farm receives financing from a PRC bank.

Taitong will carry out the business plan and obtain all necessary permitting and authorisations for the wind farm, and secure low interest rate bank-debt financing of up to $80m.

FEWP will hold a 49% ownership interest in the wind farm with Taitong owning the remaining 51%.

Under the LOI, FEWP also obtained the right of first refusal on the remaining 99MW preliminarily approved wind farms controlled by Taitong in Yunnan.

If all 148.5MW are developed in Yunnan, potential revenue from the Yunnan wind farms are expected to be $34.4m in revenues per year if fully utilised, the company said in a statement.