A small group of founding partners own a slight majority of the Company and the rest is owned by public shareholders.

The total project cost is estimated at approximately RMB1,698 million (approx. US$248 million equivalent). IFC is considering providing senior debt to the Project Company in an amount of up to US$45 million on its own account through an A-loan and mobilize up to US$107 million from commercial banks through a B-loan syndication. IFC is also considering a US$10 million equity investment in CWP.

55.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	45.0
Equity	10.0

* These investment figures are indicative

The Company headquarters are located in Beijing with operations across several provinces in China. The 8th Ganhekou project is located in the Gobi desert, 56.5km northwest of Guazhou County of Jiuquan, Gansu province, China. This site is one of 20 projects totaling 3.8GW that the Government of China has awarded for development of this “wind base” in the Gansu province.

The development impact of the project is expected to include: Increasing the electricity generation capacity from renewable sources by 100MW with about 220GWh generated annually; Consequently, avoiding greenhouse gas (GHG) emissions of about 206,000 tCO2e annually helping to improve air quality and mitigate climate change; Contributing to the economic development of one of the frontier provinces in China, by helping with the electrification of the province and neighboring provinces, procuring wind turbines from the local manufacturing facility, and contributing to foreign direct investment; Supporting China’s ambitious plan to increase renewable resources in the energy mix to generate 10% and 15% of its electricity from renewable sources by 2010 and 2020, respectively; Helping to reduce reliance on finite coal resources for thermal power generation; Promoting private sector participation in the wind power sector by supporting one of the few wind farms that are majority owned by private investors, thus sending a positive signal to domestic and international private investors and developers; and, Contributing to job creation mainly during project design and construction with an estimated peak of about 200 local temporary workers.

IFC’s role and additionality in the financing of the Project include: Providing fixed-rate long-term financing needed to develop wind power capacity; Fulfilling a catalytic role in mobilizing commercial project-financing to the wind power sector in China by providing comfort to foreign financial institutions for which wind is a relatively new sector and regulatory framework in China may be perceived as a high country risk; Providing a positive signal to potential investors in China which would then be willing to take the wind power risk and support the Company and other private developers through equity and debt financing. A successful implementation of this project with IFC financing can have an important ‘signaling effect’ with a rippling effect on the sector; Facilitate knowledge sharing with the Company so that it benefits from IFC’s experience in financing several wind projects worldwide; Enhancing the Company’s credibility in its dealings with foreign and domestic counterparties, which can help it in attracting other lenders and investors as it continues its fast pace growth in line with the wind industry in China.

This corporate investment in CWP together with the proposed financing of the 8th Ganhekou Wind Farm (201MW) project is a Category B project because a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The key aspects of relevance to the Project include social, environmental, health and safety management systems and their effective implementation in the Company’s projects and operations; the identification and mitigation of social and environmental impacts on account of projects; site selection and land acquisition; community consultation and engagement; labor working conditions during construction and operation; and pollution prevention and abatement during construction and operation. In view of the fact that the location and siting of all projects to be developed by the Company are as yet not known and because this investment will be used to support future, but as yet, undefined projects in addition to existing projects, IFC’s review of this proposed investment also focused on social, environmental, health and safety management systems of the Company. Potential impacts during construction besides being mitigable are anticipated to be limited to project site and short term. Further, it is possible to readily design and implement engineering and management measures to mitigate adverse impacts during construction and operations. The Company will manage its environmental and social performance in accordance with applicable local laws and regulations and international standards, including IFC’s Performance Standards on Social and Environmental Sustainability.

A summary discussion on the social and environmental aspects of relevance to the Project including the Company’s plans to address these impacts has been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC.