China Hydroelectric Corporation Announces Acquisition of 44 MW Hydroelectric Power Project in Yunnan Province

September 13, 2010

NEW YORK, Sept. 13 /PRNewswire-Asia-FirstCall/ — China Hydroelectric
Corporation (NYSE: CHC, CHCWS) (“China Hydroelectric” or the “Company”), an
owner, developer and operator of small hydroelectric power projects in the
People’s Republic of China
(“PRC”), today announced that on September 6, 2010
it consummated the previously announced acquisition of 100% of the Xiaopengzu
hydroelectric power project, totaling 44 megawatts (“MW”) of installed
capacity in Yunnan province of the PRC.

The equity purchase price for the project was US $35 million (RMB 240
) with a debt assumption of $22 million (RMB 150 million). The Company
is in the process of refinancing the existing bank debt and expects to receive
an additional $13 million (RMB 90 million) in non-recourse bank debt from the
Bank of China Fujian Branch.

The Company had announced the execution of the definitive agreement for
this acquisition on February 16, 2010. This purchase provides for the addition
of 44 MW of operating installed capacity, increasing the Company’s total
installed capacity to 493.4 MW.

The Company continues to work towards finalizing the acquisition of the
Taiyu projects, for which the Company has entered into memoranda of
understanding. As announced previously, the Company has made down payments
with respect to the Taiyu projects memoranda, which include penalties to the
sellers for cancellation. Subject to the satisfactory completion of its due
diligence review, the Company expects to enter into definitive agreements to
acquire and finance these projects in the near term.

“We are pleased to consummate the acquisition of the Xiaopengzu project in
Yunnan province,” said Chairman & CEO John D. Kuhns of China Hydroelectric
Corporation. “This acquisition significantly increases our total installed
capacity and Yunnan province, where we already own and operate 114 megawatts
of capacity, presents an excellent opportunity to expand our asset base in
China. Our ability to acquire hydroelectric power projects has accelerated as
a result of our January 2010 IPO and our favourable loan framework agreement
with the Bank of China’sFujian branch.”

About China Hydroelectric Corporation

China Hydroelectric Corporation (“CHC” or the “Company”) is an owner,
consolidator, developer and operator of small hydroelectric power projects in
the People’s Republic of China. Led by an international management team, the
Company’s primary business is to identify and evaluate acquisition and
development opportunities and acquire, and in some cases construct, small
hydroelectric power plants in China. China produces approximately 22% of its
total energy from hydroelectric energy. The Company currently owns sixteen
operating hydroelectric power projects (consisting of 21 operating stations)
in China with total installed capacity of 493.4 MW. These projects are located
in four provinces: Zhejiang, Fujian, Yunnan and Sichuan.

For further information about China Hydroelectric Corporation, please
visit the Company’s website at http://www.chinahydroelectric.com .

Cautionary Note Regarding Forward-looking Statements:

Statements contained herein that address operating results, performance,
events or developments that we expect or anticipate will occur in the future
are forward-looking statements. The forward-looking statements include, among
other things, statements relating to our business strategies and plan of
operations, our ability to acquire hydroelectric assets, our capital
expenditure and funding plans, our operations and business prospects, projects
under development, construction or planning and the regulatory environment.
The forward-looking statements are based on our current expectations and
involve a number of risks, uncertainties and contingencies, many of which are
beyond our control, which may cause actual results, performance or
achievements to differ materially from those anticipated. Should one or more
of these risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those anticipated,
estimated or projected. Among the factors that could cause actual results to
materially differ include: supply and demand changes in the electric markets,
changes in electricity tariffs, hydrological conditions, our relationship with
and other conditions affecting the power grids we service, our production and
transmission capabilities, availability of sufficient and reliable
transmission resources, our plans and objectives for future operations and
expansion or consolidation, interest rate and exchange rate changes, the
effectiveness of our cost-control measures, our liquidity and financial
condition, environmental laws and changes in political, economic, legal and
social conditions in China, and other factors affecting our operations that
are set forth in our Prospectus dated January 25, 2010 and filed with the
Securities and Exchange Commission (the “SEC”) and in our future filings with
the SEC. Unless required by law, the Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.

    For more information, please contact:

     China Hydroelectric Corporation
     Mary Fellows
     EVP and Secretary
     Tel:   +1-860-435-7000
     Email: mfellows@chinahydroelectric.com

    Investor Relations:
     HC International, Inc.
     Scott Powell
     Tel:   +1-917-721-9480
     Email: scott.powell@hcinternational.net

SOURCE China Hydroelectric Corporation

Source: newswire

comments powered by Disqus