China Gezhouba Group Co., Ltd. announced on June 8 that it had recently signed the Memorandum of Understanding on Budhi Gandaki Hydropower Station in Nepal with the Ministry of Energy of Nepal in Kathmandu, the capital of Nepal, to be responsible for the planning of Nepal's energy sector and the development of large-scale energy projects. The memorandum States that once the financial conditions are agreed by both parties , Gezhouba will implement the construction of Nepal Hydropower Station Project on the basis of EPC + F in an appropriate contract mode.
The announcement reads as follows:
Announcement on Signing of Memorandum of Understanding for Overseas Projects
The board of directors and all directors of the Company warrant that there are no false representations, misleading statements or material omissions in this announcement, and severally and jointly accept responsibility for the truthfulness, accuracy and completeness of its contents.
Important note
Type of Agreement: Memorandum of Understanding
Conditions for the effectiveness of the agreement: This memorandum shall come into force upon signature and shall have full legal effect.
Impact on the results of the listed company for the current period: As the Memorandum is a preliminary agreement for the project, the performance of the Memorandum will not have a material impact on the annual results of the Company for 2017.
I. Basic Information of the Memorandum
1. Signing of the memorandum of understanding
Recently, China Gezhouba Group Company Limited (hereinafter referred to as the "Company") and the Ministry of Energy of Nepal signed the Memorandum of Understanding on Budhi Gandaki Hydropower Station in Nepal (hereinafter referred to as the "Memorandum") in Kathmandu, the capital of Nepal: The technical proposal and financing proposal shall be submitted, and the signing of the EPC contract shall be completed through negotiation with the Owner after being reviewed by the Ministry of Energy of Nepal. The memorandum of understanding has been approved by the Council of Ministers of Nepal and is exclusive and has legal effect.
2. Information of the other party to the memorandum
The Ministry of Energy of Nepal is responsible for the planning of Nepal's energy sector and the development of large-scale energy projects.
II. Main contents of the memorandum
The installed capacity of Budhi Gandaki Hydropower Station Project in Nepal is 1,200MW, with a budget of about USD 2.5 billion, equivalent to about RMB 17 billion (calculated based on USD 1 = RMB 6.80). The main work includes a concrete double-curvature arch dam with a maximum height of 263 meters, a diversion tunnel with a length of about 700 meters, a spillway, a ground powerhouse, a surge shaft, a tailrace dam and an access tunnel, etc. The construction period is 78 months. According to the MOU, the Ministry of Energy of Nepal will develop the hydropower project on the EPC + F basis, and the Company will finance the project from Chinese financial institutions in a manner acceptable to the Ministry of Energy of Nepal. Once the funding conditions are agreed by both parties, the Company will implement the project on the EPC + F basis on an appropriate contractual basis.
III. Impact on Listed Companies
The signing of this memorandum is in line with the company's international development strategy and is conducive to the company's participation in the investment and construction of hydropower projects in Nepal.
IV. Important Risk Warning
The main risk of this memorandum is the risk of sharing trade secrets, and there is a confidentiality clause in the memorandum.
V. Documents for future reference
Memorandum of Understanding (the original shall prevail).
Hereby announce.
Board of Directors of China Gezhouba Group Company Limited
June 8, 2017
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