China Hydroelectric Corporation pursues combined 78 MW in hydro projects

16 February 2010 - China Hydroelectric Corporation said that it has executed a definitive agreement to acquire a 44 MW operating hydroelectric project in Yunnan province in the People's Republic of China. In addition, the Company announced that it has also entered into memoranda of understandings (MOUs) to acquire two additional operating hydroelectric power projects aggregating 34 MW in Yunnan province. Together with the definitive agreement, these memoranda present the Company with the opportunity to acquire an additional 78 megawatts of generating capacity in Yunnan province.

The definitive 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 memoranda of understanding 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.

Chairman & CEO John D. Kuhns of China Hydroelectric Corporation remarked, "Completion of these transactions would represent Phase I of our plan to acquire approximately 250 MW of operating hydroelectric projects during the first half of 2010."

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