A-Power Energy Generation Systems, Ltd. (A-Power) has announced that Shenyang Power Group Company Ltd. (SPG), in which A-Power owns a 19.5% interest, signed a letter of intent (LOI) with China Machinery Engineering Corporation (CMEC), involving the development of a proposed 615MW wind power generation project in Texas (Texas Wind Farm).
The LOI calls for SPG to appoint CMEC as the EPC contractor for the Texas Wind Farm project and for CMEC to assist SPG in obtaining approximately US$ 260 million in debt financing from banks and other financing agencies in China for Spinning Star Energy LLC (Spinning Star), the project company that was founded to own, develop, and operate the Texas Wind Farm. As the EPC contractor, CMEC would be expected to procure equipment from suppliers designated by SPG. The parties expect to have further discussions and negotiations regarding the details of the arrangements covered by the LOI and to prepare and finalize the multiple agreements that will be required to create binding obligations between the parties during the course of May 2011.
The LOI calls for SPG to appoint CMEC as the EPC contractor for the Texas Wind Farm project and for CMEC to assist SPG in obtaining approximately US$ 260 million in debt financing from banks and other financing agencies in China for Spinning Star Energy LLC (Spinning Star), the project company that was founded to own, develop, and operate the Texas Wind Farm. As the EPC contractor, CMEC would be expected to procure equipment from suppliers designated by SPG. The parties expect to have further discussions and negotiations regarding the details of the arrangements covered by the LOI and to prepare and finalize the multiple agreements that will be required to create binding obligations between the parties during the course of May 2011.
