The agreement includes provisions for Far East Wind's ownership interest in the wind farm to be structured as a Sino-foreign joint venture of 49% with the local Chinese partner to own 51% of the project.
Additionally, Far East Wind plans to undertake to fund up to $20million of the development costs. Beijing Tongchuang will execute its business plan and work to obtain all necessary remaining permitting and authorizations for the wind farm, and to secure low interest rate bank debt financing of up to $70 million.
In 2006, nine wind power projects with a combined capacity of around 2GW were announced by the local government for Ningxia Hui Autonomous Region by 2020 at a cost of CNY17.6 billion ($2.2 billion).
.JPG)