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| Lihoy > Energy > Energy Projects > Seek Investors For Power Plant Project In China |
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| Three mobile power plants delivered and commissioned in China will generate total of 420,344,000kw of electricity at wholesale cost of $0.045 and will generate total net profit after all expenses of about $12m per year for the next 25 years (terms of contract) There the power purchase agreement (ppa): The power bureau of China (the grid), a bureau of the ministry of electricity and electrification of China, will execute a ppa guaranteeing to accept no less than 90% of the plants output on a take-or-pay basis. The minimum amount to be paid under the ppa and guaranteed by the Chinese affiliates and the grid is $9,500,000 per year for the first 15 years and guaranteed by the bank of China. Engineering, procurement, and construction (epc) contract: Epc contractor will cause to be issued a performance bond to guarantee that the plants will be built to specifications and produce the power output for which they have been planned and rated. Political risk coverage: Full political risk coverage will be issued by aig or the chubb group. Coverage will include a failure-to-honor declaration indemnifying the lender in the event the grid and/or guarantors fail to make the guaranteed minimum annual payment under the joint-venture agreement. Fuel supply agreement (fsa): A bureau of the ministry of electricity and electrification of China meec, will execute a fsa guaranteeing the delivery of gas on a pass through basis for a period of 25 years. We are looking for investors with additional funds of $3.3m with following return: 1. Investors will own 10% of the progect's net profit of about $12m = $1.2 M per year for the next 15 years and 6 % for the remaining 10 years. 2. Investors will get back initial investment of $3.3m within 3 years. 3. Jv will consider partial investments as well GMDC Trading Company
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