Gansu Datang Yumen Wind Power Co

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In September 2005, Gansu Datang Yumen Wind Power Co. Ltd. was created by Chinag Datang Corporation (CDT), one of the country’s extra large power enterprises, and Korea Electric Power Corp. (KEPCO), to jointly build a 49 MW wind power plant in Guansu, a province in Northwestern China. The joint venture agreed to operate the power plant for 26 years including construction period. Under the terms of the project, Kepco and China Datang agreed to build and operate a wind power plant with capacity of 49 megawatt. The total investment was to estimated at US$ 57.5 million, 66.6% of which (US$ 38.3 million) was raised through Chineses banks and US$ 19.2 million in paid-in capital. According to the contract, KEPCO was to pour US$ 7.68 million (40% of the first-phase investment of US$ 19.2 million) into the project and participated in the operation as the second biggest shareholder. The plant started construction in October 2005 and was expected to take about a year to complete. Kepco expected an annual dividend income of more than 10% of its investment from the deal.