INCaF Xinglong Hydro

completed

Xinglong Hydropower Co. Ltd (Xinglong or the company) is a power generation company established in 2003 to develop, implement and operate medium and small-sized hydro power stations in the Guizhou province. In late 2003 the company was awarded the rights to develop the hydropower resources in Kaiyang county, which are estimated at over 100MW. Since 2004, the company has been engaged in the development and implementation of two run-of-river hydro power generation facilities in the Yuliang river, namely Najiang (21MW) and Zijang (12MW), representing a total investment in the order $26-28 million. Construction of Najiang is nearly completed with expected commercial operations to begin in September 2007. As for Zijang, construction is scheduled to begin in September 2007, and its commercial operation is envisioned to start during the 2nd or 3rd Quarter of 2009. It is anticipated that these two facilities will be registered under the Clean Development Mechanism (CDM) of the Kyoto Protocol, to generate and sell up to an estimated 95,000 tons/year of Certified Emissions Reductions (CERs) to be granted on the basis of run-of-river hydro generation assets that displace fossil fuel based generation in the southern grid (mostly coal).