China Green

completed

China Green Energy (Cayman) Ltd. (China Green or the company) will be incorporated in the Cayman Islands by Mr. Dou Zhenggang. It will be a holding company to own, develop and invest in the power generation projects in China, with a focus on combined heat and power (CHP) plants, as well as generating facilities that utilize municipal solid waste (MSW) and low quality/waste coal as primary fuel. Prior to IFC’s investment, China Green will own certain interests in several power projects that have been developed by Hangzhou Jinjiang Group (“HZJJ”), a company owned by Mr. Dou in Hangzhou, China. It is contemplated that China Green will acquire all of HZJJ’s interests in power assets and become an independent power development, investment and management company. The following summarizes the key information on the plants to be acquired by China Green. Jiaxing Jinjiang Cogeneration Co., Ltd - Located in the Xiuzhou district of Jiaxing city, Zhejiang province, it is a cogeneration power plant that started operations in 1997 utilizing coal as fuel. It has an installed capacity of 50 MW of electricity and 120 tons per hour of steam. The Jiaxing plant sells electricity to the Jiaxing City Power Bureau, and provides steam and heat to the industrial customers within 7.5km radius of the plant. The plant is currently being expanded by 12 MW. Hangzhou Yuhang Jinjiang Environmental Energy Ltd. - The plant is the first waste to energy cogeneration plant developed by HZJJ using municipal solid waste as fuel. It was initially a coal-fired CHP plant, and was successfully converted in 1998 into a WTE plant burning MSW using technology developed by Zhejiang University. It is located in Yuhang district of Hangzhou city, Zhejiang province, with installed electricity capacity of 12 MW, thermal capacity of 105 tons of steam per hour, and MSW processing capacity of 150 tons per day. Jiande Jinjiang Comprehensive Coal Utilization Co., Ltd. - The plant is located in Jiande city, Zhejiang province. It commenced operation in July 2002 and utilizes bone coal (low grade coal) as fuel with an installed capacity of 12 MW of electricity and 70 tons per hour of steam. Coal is sourced from a dedicated mine one kilometer from the plant. Zhengzhou Xingjin Green Environmental Energy Ltd. – It is a waste to energy power plant using municipal solid waste as primary fuel, and is located in Xingyang, Zhengzhou city in Henan province and commenced operation in January 2003. It has an installed capacity of 24 MW, thermal capacity of 150 tons of steam per hour, and MSW processing capacity of 1,000 tons per day. A expansion of 12 MW is currently underway. Henan Dengfeng Xinjin Comprehensive Utilization Ltd. - The plant is located in Dengfeng city, Henan province. It is a power plant utilizing waste coal as fuel with an installed capacity of 24 MW of electricity and 150 tons per hour of steam. The Dengfeng plant started operations in September 2002. Yima Jinjiang Comprehensive Utilization Ltd. - This is currently the largest power plant being developed and built by HZJJ, and is located in Yima city, Henan province. The Yima plant utilizes waste coal as fuel and has an installed capacity of 270 MW. Construction started in January 2002 and is expected to be completed by mid-June 2004.