Huangshi Phase II

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Hubei Xisaishan Power Generation Company Limited ("Hubei Xisaishan"), an associate company of Meiya Power Company Limited (MPC), achieved financial close for its 700 MW coal-fired power plant and its ancillary facilities at Xisaishan, Huangshi City, Hubei province, People’s Republic of China in May 2002. Hubei Xisaishan was a sino-foreign joint venture company incorporated in China to develop, construct and operate the Project. MPC owned 49% of Hubei Xisaishan, in partnership with state-owned Hubei Huangshi Power Generation Co. Ltd. (50%) and Huangshi City Investment Company (1%). Construction of the 660 MW pulverized coal-fired plant had started with the target date for commercial operation set for mid-2005. The electric power was to be purchased by the state-owned Hubei Electric Power Company under a 20-year long-term power purchase contract. The total cost of the project was expected to be US$382 million provided by non-recourse debt funds from the China Development Bank (US$275 million) and equity funds from MPC. MPC was jointly owned by PSEG Global Inc (50%), the Asian Infrastructure Fund (30%), and Hydro-Quebec International (20%). In July 2004, Darby Asia Investors, Ltd. ("DAI"), acquired Hydro-Quebec's 20% stake for a total cash consideration of US$84.6 million. None None