Xinglong is owned by seven shareholders as follows:

- Shanghang Hongyang Mining Project Co.,Ltd (Hongyang) – 52%, a mining company established in 1998 by Mr. Weihua Zhou to carry out the extraction of gold/copper resources, as well as the construction of galleries at Shanghang and Zijinshan in Fujian. Prior to founding Hongyang, Mr. Weihua (who currently owns 95% of the company) worked for over 15 years as a mining engineer for the Geology Team of the Fujian Province. Hongyang Mining has been awarded as a "reliable company" by local business bureau and tax authorities, and is rated as AAA by Agricultural Bank of China.

- Mr. Weifu Zhou – 15%, who has 15 years experience in the development and construction of hydro power projects, including construction of water diversion tunnels and dams.

- Mr .Weijian Zhou – 12%, who before joining Xinglong worked as vice construction team leader of the Water Conservancy & Electric Power Project Department of Nanping city,Fujian province.

- Mr. Dongcai Jiang – 10%, who has over 20 years experience in development and construction of hydro power projects working for several state owned bureaus and private companies in Fujian Province, including Nanyang Xiayang Hydro (43.8MW) and Nanping Zhaokou (60MW).
The remaining 11% is held by three minority shareholders.

The value of INCaF’s contract or emissions reductions purchase agreement to purchase CERs is expected to be in the range of USD 5.0 – 6.0 million, payable in installments on annual delivery of CERs (generated through to the end of 2012) to the CDM registry account of the Netherlands.

Nanjiang Hydropower Project (Nanjiang) and Zijiang Hydropower Project (Zijiang), the two facilities comprising the project, are located at the main stream of the Yuliang river near Duduzhai village in Kaiyang County in Guizhou province. The nearest large city from the both sites is Guiyang city, the provincial capital, approximately 88 kilometers northwest of the project site.

Nanjiang is located at the Yuliang River between Duduzhai village and Nangong village of Kaiyang county. Nanjiang lies in a valley with steep mountains on both sides. The river channel is narrow and consists mainly of bare rock with more rich vegetation on the mountains.

Zijiang is located near Xiaoshuashan Ziran village. The project area is mountainous and the valley has a U-shape. The area has some vegetation, but rocks are bare and the mountains have steep slopes.

Both sites are suitable for the construction and operation of hydropower projects in terms of both the average water flows and the altitude of the heads provided by the sites.

The project generates power from hydro-electric power plants to improve the sustainability of power generation in Southern China through:

-Reducing reliance on exhaustible fossil fuel based power sources
-Reducing the local power shortage in Kaiyang County
-Reducing local air pollution
-Promoting the local and economic development
-Reducing global emissions of greenhouse gases

The project fits with the Chinese government’s objective to reduce reliance on coal and make the energy sector and the power sector in particular more sustainable.

IFC’s goal is to encourage emerging market private sector participation in the carbon market by providing value-added services to support project’s long term sustainability. As a global investor and advisor committed to developing sustainable private sector in emerging markets, IFC is well positioned to assist project sponsors to participate in the carbon market.

IFC’s experience and knowledge in evaluating and financing private sector projects in developing countries is leveraged to structure contracts that minimize the risks associated with the delivery of CERs from projects. The sale of CERs from these hydro plants will allow Xinglong to partially fund its investments in expansion of its renewable energy capacity. This possibility will in turn allow Xinglong to explore new financing sources of reasonable terms to help expand its capacity.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects 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 appraisal of this project included visit to Nanjiang, where construction have already been completed, as well as to the proposed / construction sites for Zijiang.

The following potential environment, health and safety and social aspect of the project (s) were analyzed: environmental, social, and health and safety management systems; public consultation and disclosure; effects from multiple hydroelectric facilities on a river system; company and contractor labor practices; management of pollutants and wastes during construction; dam and community safety; land acquisition; loss of forest land and/or adverse impacts on biodiversity; and effects on fish and other aquatic resources.