China Wind Power International Corp. (CNW), an independent wind power producer in China, announced that it has signed an engineering, procurement and construction (“EPC”) contract with China Ming Yang Wind Power Group Limited (MY) (“Ming Yang”), a world-leading manufacturer of turbines in China, and has commenced its 198 MW Phase III wind farm project, consisting of four wind farm projects each with total output of 49.5 MW. Under the terms of the EPC contract, Ming Yang will deliver and install 132 1.5 MW wind turbines as well as provide engineering and construction management for the 198 MW wind farm project.
“The commencement of Phase III, along with the signing of an EPC contract with Ming Yang, is a critical next step towards our objective of fully developing our wind resource in Du Mon County,” said Mr. Jun Liu, Chief Executive Officer of China Wind Power. “In particular, our new arrangement with Ming Yang enables us to access advanced turbines that are ideally suited for China’s specific wind and weather conditions. Just as significant, our contract provides us favourable financial terms with no immediate impact on our working capital.”
“The signing of the EPC contract with China Wind Power is another successful application of our new business model,” said Mr. Chuanwei Zhang, chairman and CEO of Ming Yang commented, “Ming Yang’s EPC total solution and customized product offering together with the abundant wind resource obtained by China Wind Power will help to promote a win-win outcome, helping Ming Yang to expand its market share and China Wind Power to accelerate development of its wind resources.”
Phase III consists of four wind farms located in Du Mon County, Heilongjiang Province, China, adjacent to the Company’s Phases I and II and shares the same wind resource. The project is expected to be completed by the end of the second quarter of calendar 2012 and to generate approximately 400 million KWh per year or 244 million RMB (approximately C$37 million) annually once the wind farms are in full production. As announced previously, China Wind Power has completed Phase I of the five planned Phases of development. Phase II, which will have a total capacity of 49.5 MW, is currently under construction and is expected to be completed by the end of calendar 2011.