Empresa de Generación Eléctrica Cheves S.A. (“Cheves” or the “Company”) is developing a run-of-river 168 MW hydroelectric power generation plant, along the Churin and Checras rivers, approximately 245 km north of Lima, Peru (the “Project”). The Project is expected to generate 838 GWh annually on average, yielding a plant utilization factor of around 57%. The Project comprises the construction of a total of 18 km in tunnels (including a water conveyance system), an underground power house, and a 77 km transmission line to connect the project to the National Interconnected System. The Project has been in development for over 10 years and Cheves has now secured all necessary key permits for its development, including a Definitive Concession (required for electric power generation activity), and performed the required Environmental & Social Assessments (“ESIA”s) in accordance with local regulation. The Company has also secured 8 Power Purchase Agreements (“PPA”s) with electricity distribution companies for a period of 15 years starting in 2014.