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 which owns, develops and invests in 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. Upon completion of the acquisition, China Green’s portfolio will include the following: - Jiaxing Jinjiang Cogeneration Co. Ltd. -- a 50 MW CHP plant (currently being expanded by 12 MW); - Yuhang Jinjiang Environmental Energy Ltd. -- a 12 MW waste to energy (WTE) plant utilizing MSW as primary fuel; - Jiande Jinjiang Comprehensive Utilization Ltd. – a 12 MW plant that utilizes bone coal as primary fuel; - Zhengzhou Xinjin Green Environmental Energy Ltd. – a 24 MW WTE plant (currently being expanded by 12 MW) utilizing MSW as fuel; - Henan Dengfeng Xinjin Comprehensive Utilization Ltd. – a 24 MW plant utilizing low grade coal as fuel; and - Yima Jinjiang Comprehensive Utilization Ltd. – a 270 MW plant currently under construction and will utilize low grade coal as fuel.IFC’s investment involves an IFC A loan of up to $20 million to China Green, with detachable warrants that give IFC the right to subscribe up to $10 million of the Company’s common equity. IFC’s loan will assist the company in completing the acquisition of HZJJ’s interests in power generation assets in China. IFC’s investment will also assist the company in improving its corporate governance policies and preparing it for an IPO in an international stock market.