"We were originally expecting the full 120 million Yuan to be disbursed earlier and all at once, which would have enabled us to complete our 49.5 MW Phase II wind farm," said Mr. Jun Liu, Chief Executive Officer, China Wind Power. "In 2011, China increased the requirements on bank reserves. Accordingly, banks increased their loan interest by adding a premium on the prime rate and gave priority to higher interest loans in order to maintain their earnings. We are fortunate that we still managed to obtain this loan at the prime rate without a premium. However, the Bank only disbursed 50 million Yuan before the end of the calendar year. While we expect to receive the remaining 70 million Yuan any day now, this has unfortunately pushed back our timeline for completing Phase II."
The Company confirms that the remaining 13 wind turbines required for the 49.5 MW wind farm have been assembled in the supplier’s warehouse awaiting delivery. Contingent on the timing of the final disbursement from the Bank, the Company now expects to complete Phase II by spring of this year.
The timing of the final loan disbursement and the delay in completing Phase II do not have any impact on the construction of the Company’s 198 MW Phase III wind energy project. Phase III is being constructed under more favourable financial terms through an engineering, procurement and construction contract with a different turbine supplier than Phase II. Foundations have been laid for all 132 turbines at Phase III, with construction expected to be completed by the end of June 2012.
China Wind Power International Corp. is an Ontario company that is uniquely positioned to capitalize on the growing demand for wind energy in China. The Company indirectly holds the exclusive rights for wind energy development in Du Mon County, Heilongjiang Province, which has a demonstrated potential installed capacity of 1,150 MW of wind energy developable over an area of 612 square km. While 1,150 MW represents the Company’s long-term potential for wind power in the area, its current plans are for building out approximately 800 MW over five development phases. The Company’s common shares are listed on the TSX Venture Exchange under the symbol "CNW". The Company has approximately 63.9 million shares outstanding.