Document:

Exhibit 4.104 

	
 

	
Agreement No. DDXY-2010006 

	
 

	
Grid Connection and Dispatching 

	
Agreement 

	
 

	
Between

	
 

	
Yunnan Nujiang Grid Co., Ltd.

	
 

	
And

	
 

	
Fugong County Hengda Hydroelectric Development Co., Ltd.

	
 

	
May 2010

Grid Connection and Dispatching Agreement 

This Grid Connection and Dispatching Agreement (hereinafter referred to
as “this Agreement”) is entered into by the following parties: 

Party A: Yunnan Nujiang Grid Co., Ltd., a company which engages in the
Grid operation. 

Domicile: No. 65 Xiang Yang Nan Road, Liuku Town, Lushui County, Nujiang
Prefecture. 

Party B: Fugong County Hengda Hydroelectric Development Co., Ltd., a
company which engages in the electricity generation. 

Domicile: Shangpa Town, Fugong County. 

Whereas: 

	
 

	
 

	
(1)

	
Party A
operates and manages the Grid applicable for the operation of power plants,
and has agreed the power plant of Party B to be connected with the Grid for
operation in accordance with the provisions of this Agreement. 

	
 

	
 

	
(2)

	
Party B
owns, operates and manages two power stations with the total installed
capacity of 35.2MW (“Power Plant”) which include the Alu River Power Station
in Shiyueliang Township, Fugong County, and the Zileng River Power Station in
Pihe Township, Fugong County, and has agreed such Power Plants to be
connected with the Grid for operation in accordance with provisions of this
Agreement. 

In order to ensure the safe, good and economical operation of the Grid,
and keep both parties of this Agreement act properly during the process of the
Grid connection and dispatch, in accordance with the national laws and
regulations such as the Electricity Law of the People’s Republic of China,
Contract Law of the People’s Republic of China, and Rules of the Grid
Dispatching Management, as well as the relevant regulations and rules in the
electricity industry such as the Regulations of Nujiang Grid Dispatching
Management, and based on the principles of equality, voluntariness and good
faith, Party A and Party B have, after consultations, made agreement as follows:

	
 

	
 

	
1

	
Definitions and Interpretations 

	
 

	
 

	
1.1

	
Unless
the context otherwise requires, the terms used in this Agreement shall have
the meanings as follows: 

	
 

	
 

	
 

	
1.1.1 Dispatching Agency means the Dispatching
Centre of Yunnan Nujiang Grid Co., Ltd. (“Prefecture Dispatch”). It is the
dispatcher of the grids of 110KV or less of Nujiang Grid and a department of
Party A which will organize, direct, instruct and coordinate the operation of
the electricity system in accordance with laws. 

	
 

	
 

	
 

	
1.1.2 Power Plant means the two power plants
owned, operated and managed by Party B with the total installed capacity of
35.2MW, i.e. the Alu River Power Station with the capacity of 10MW in
Shiyueliang Township, Fugong County, and the Zileng River Power Station with
the capacity of 25.2MW in Pihe Township, Fugong County, including the
generation facilities and all the ancillary equipments in the scope extended
to the property demarcation point. 

	
 

	
 

	
 

	
1.1.3 Connection Point means the point where
the Power Plant is connected with the Grid. 

	
 

	
 

	
 

	
1.1.4 Date of Initial Connection means the
first date of the synchronized connection of the Power Plant (units) with the
Grid. 

	
 

	
 

	
 

	
1.1.5 Connection Application means the written
application document submitted by Party B to Party A to request to have its
Power Plant (units) connected with the Grid. 

2

	
 

	
 

	
 

	
1.1.6 Connection Method means the method of the
connection of the primary system between the Power Plant (units) and the
Grid. 

	
 

	
 

	
 

	
1.1.7 AGC means Automatic Generation Control.

1.1.8 AVC means Automatic
Voltage Control.

1.1.9 RTU means
Remote terminal Unit. 

1.1.10 PSS means
Power System Stabilizer. 

1.1.11 WAMS
means Wide-area Measurement System. 

	
 

	
 

	
 

	
1.1.12 Split, for the purpose of this Agreement,
means the discontinuity of the electric connection between the Grid and the
power generation equipment which has been connected with the Grid for
operation. 

	
 

	
 

	
 

	
1.1.13 Special Operation Mode means the
operation arrangement which would make the wiring method of the Power Plant
or the Grid different from the normal method in order to meet certain demand.

	
 

	
 

	
 

	
1.1.14 Available Capacity of Unit means the
output of the unit in any time subject to the adjustment in consideration of
the condition of the equipments. 

	
 

	
 

	
 

	
1.1.15 Planned Outage means the status of the
unit in the Power Plant during the period of planned inspection and standby,
including the overhaul, maintenance, planned maintenance of the common system
and the maintenance during the public holidays required by the dispatcher,
eliminating defects during off-peak period and shutting off to be standby
etc..

	
 

	
 

	
 

	
1.1.16 Unplanned Outage means the unavailability
of the unit in the Power Plant without being the status of Planned Outage.
Based on the emergency degree, the Unplanned Outage can be divided into the
following 5 categories: the first is immediate outage; the second is the
outage which can be delayed temporarily but must be exited within 6 hours;
the third is the outage which can be delayed by 6 hours but must be exited
within 72 hours; the fourth is the outage which can be delayed by 72 hours
but must be exited prior to the next Planned Outage; and the fifth is the
prolonged outage which exceeds the period of Planned Outage. 

	
 

	
 

	
 

	
1.1.17 Forced Outage means the Unplanned Outage
of the first, second and third categories under Clause 1.1.16 in together. 

	
 

	
 

	
 

	
1.1.18 Equivalent Unit Derated Hours means the
equivalent outage hours of the unit derated hours calculated on the basis of
the maximum capacity on the nameplate. 

	
 

	
 

	
 

	
1.1.19 Equivalent Unplanned Outage Hours means
the sum of the Unplanned Outage hours and the unplanned unit derated hours. 

	
 

	
 

	
 

	
1.1.20 Annual Planned Allowable Outage Hours
means the planned allowable outage hours in any one year determined by Party
A and Party B in consideration of the suggestions of the equipment
manufacturer and the operation of the generation units of the Grid-connected
Power Plant. The Annual Planned Allowable Outage Hours shall include both the
Annual Planned Allowable Outage Hours in the year with overhaul and the
Annual Planned Allowable Outage Hours in the year without overhaul. 

	
 

	
 

	
 

	
1.1.21 Annual Equivalent Allowable Unplanned Outage Hours
means the equivalent allowable unplanned outage hours in any one year
determined by Party A and Party B in consideration of the suggestions of the
equipment manufacturer and the operation of the generation units of the
Grid-connected Power Plant. For the purpose of this Agreement, it only refers
to the Unplanned Outage resulted by Party B. The Annual Equivalent Allowable
Unplanned Outage Hours shall include both the Annual Equivalent Allowable
Unplanned Outage 

3

	
 

	
 

	
 

	
Hours in
the year with overhaul and the Annual Equivalent Allowable Unplanned Outage
Hours in the year without overhaul. 

	
 

	
 

	
 

	
1.1.22 Daily Generation Dispatch Schedule Curve
means the curve prepared by the Dispatching Agency on a daily basis to
determine the output of the Power Plant during each time span of the next
day.

	
 

	
 

	
 

	
1.1.23 Emergency means accidents occurred to the
power grid, or material accidents occurred to the power generation and supply
equipments; or power grid frequency or voltage exceeds the stipulated range;
or the load for transmission or transformation exceeds stipulated value; or
the capacity value of the trunk line exceeds the stipulated stability limit,
or other events that may threaten safe operation of the power grid,
jeopardize the stability of power grid, resulting in the collapse of the
power grid, or power outage in a large area.

	
 

	
 

	
 

	
1.1.24 Dispatching Regulations of Power System
means the Regulations of Nujiang Grid Dispatching Management and the
Regulations of Grid Dispatching Management established in accordance with the
Rules of the Grid Dispatching Management, national standards and the
industrial practises, in order to regulate the dispatch and operation of the
power system in this area.

	
 

	
 

	
 

	
1.1.25 Party A’s Reason refers to the Party A’s
request or liability, including the liability for the expansion of an
accident resulting from the Party A’s failure to abide by the relevant state
laws and regulations.

	
 

	
 

	
 

	
1.1.26 Party B’s Reason refers to the Party B’s
request or liability, including the liability for the expansion of an
accident resulting from the Party B’s failure to abide by the relevant state
laws and regulations.

	
 

	
 

	
 

	
1.1.27 Power Purchase and Sale Contract means
the contract entered in to by Party A and Party B in respect of the purchase
and sale of the power generated from the Power Plant and the relevant
business matters.

	
 

	
 

	
 

	
1.1.28 Force Majeure means any objective event
that can not be foreseen, avoided and overcome, including volcano, twister,
storm, mud-rock flow, mountainside slide, flood, fire, failure of the water
input to meet the design standards, earthquake that exceeds the designed anti-earthquake
standard, lightning, fog flashover, etc., as well as nuclear radiation, war,
epidemic, riot, etc.

	
 

	
 

	
1.2

	
Interpretation

	
 

	
 

	
 

	
1.2.1
Headings in this Agreement are for convenience only and shall not in any
event affect the interpretation of this Agreement.

	
 

	
 

	
 

	
1.2.2 The
appendices to this Agreement and the Agreement itself shall have the same
legal effect.

	
 

	
 

	
 

	
1.2.3
This Agreement shall have binding effect on the legal successor or assignee
of either Party, provided otherwise agreed by the Parties.

	
 

	
 

	
 

	
1.2.4
Unless the context otherwise requires, year, month or day referred to in this
Agreement shall all refer to the year, month or day of the Gregorian
calendar.

	
 

	
 

	
 

	
1.2.5
“Including” in this Agreement means including but not limited to.

	
 

	
 

	
 

	
1.2.6 The
figures and both dates of a term in this Agreement shall be inclusive.

	
 

	
 

	
2

	
Representations of Each Party 

	
 

	
 

	
 

	
Each
Party represents to the other Party that:

4

	
 

	
 

	
2.1

	
It is an
enterprise legally established and existing under the law, and has the power
to execute and perform this Agreement. 

	
 

	
 

	
2.2

	
It has
completed all procedures (including procedures for obtaining the requisite
approvals, business license and power business permits, etc., from the
government) necessary for the execution and performance of this Agreement,
which are legal and effective. 

	
 

	
 

	
2.3

	
As of the
date of execution of this Agreement, no judgment, award, decision or any
specific administrative action, which may have material adverse effects on
the ability to perform this Agreement, has been declared or taken by any
court, arbitration organ, administrative authorities or regulatory agencies. 

	
 

	
 

	
2.4

	
It has
completed all procedures for obtaining the internal authorizations necessary
for the valid execution of this Agreement. The signatory of this Agreement
shall be its legal representative or entrusted agent. Once this Agreement
comes into force, it shall have legal binding effect on both Parties. 

	
 

	
 

	
3

	
Obligations of Each Party 

	
 

	
 

	
3.1

	
Party A’s
obligations shall include: 

	
 

	
 

	
 

	
3.1.1
abiding by the national laws and regulations, national standards and
industrial standards, for purpose of the safety of the power system and
operating in an efficient and economical manner, based on the technical
features of the Power Plant, in accordance with the regulations and codes of
Yunnan electric system, and based on the principles of equality,
voluntariness and good faith, to carry out the centralized dispatch of the
Power Plant; 

	
 

	
 

	
 

	
3.1.2
being responsible for the operation management, repair and maintenance, and
technical transformation of the relevant equipments and facilities of the
Grid it belongs to, in order to meet the ordinary operation need of the Power
Plant. 

	
 

	
 

	
 

	
3.1.3 as
agreed by the Power Purchase and Sale Contract, and based on the actual
operation of the Grid, preparing and providing in a timely manner to Party B
the monthly power generation schedule, Daily Generation Dispatch Schedule
Curve and the reactive power output curve (or voltage curve). 

	
 

	
 

	
 

	
3.1.4
making reasonable arrangements of the maintenance of the equipments of the
Power Plant. 

	
 

	
 

	
 

	
3.1.5
supporting and cooperating with Party B to carry out the technical
transformation or factor adjustment on the relevant equipments; instructing
and coordinating the dispatch and operation management related with the Grid
by Party B; supervising, instructing and coordinating the relevant profession
and business such as the electric equipment, measures on coordination of the
generators and the Grid (including security automatic device, excitation
system, speed control system, minimum output of a unit, leading phase
operation capacity, primary frequency regulation, high frequency generator
tripping as well as PPS, OPC, AGC and AVC etc.), power quality, reactive
power, relay protection, electric energy metering system, power dispatching
communication and dispatching automation etc. in the operation of Party B
which matters the safe and stable operation of the Grid, and also providing
necessary technical support. 

	
 

	
 

	
 

	
3.1.6 in
accordance with the relevant regulations, reporting in a timely manner to
Party B the information of the major defects of the equipments in the Grid
which is related with Party B, and the capacity of the passageway of power
transmission, and disclosing regularly the power dispatching information
related with Party B. 

	
 

	
 

	
 

	
3.1.7
based on the demand of the operation of power system and the features of the
equipments of Party B, amending in a timely manner the relevant rules and
regulations according to proper procedures. 

5

	
 

	
 

	
 

	
3.1.8
taking measures to prevent the accident which may affect the safe operation
of the power system; carrying out regularly various specific and professional
inspections which matters the safety of the Grid, devising the anti-failure
measures as required, and formulating the plan for the joint counter-accident
exercise by the Grid and the Power Plant and organizing to implement such
plan. 

	
 

	
 

	
 

	
3.1.9
coordinating Party B with the investigation of the accident. 

	
 

	
 

	
3.2

	
Party B’s
obligations shall include: 

	
 

	
 

	
 

	
3.2.1
abiding by the national laws and regulations, national standards, industrial
standards and the rules and regulations of Yunnan power system, and for
purpose of the safety of the power system and operating in an efficient and
economical manner, submitting to the unified power dispatching of the
Dispatching Agency, and organizing reasonably the production of the Power
Plant. 

	
 

	
 

	
 

	
3.2.2
organizing the real time production operation of the Power Plant in
accordance with the instructions of the Dispatching Agency, and engaging the
peak regulation, frequency regulation, voltage regulation and standby of the
power system. 

	
 

	
 

	
 

	
3.2.3
proposing the maintenance schedule of the equipments of the Power Plant,
implementing the approved maintenance schedule and being responsible for the
repairing and maintenance of the equipments, as required by the Dispatching
Agency. 

	
 

	
 

	
 

	
3.2.4
accepting the supervision, instruction and coordination in respect of
business and technology by Party A in accordance with Clause 3.1.5, and
allocating the corresponding technological management and maintenance
management personnel to coordinate with Party A. 

	
 

	
 

	
 

	
3.2.5
carrying out in a timely manner the technical transformation or factor
adjustment on the equipments as required, and submitting to Party A for
filling (those which might be related with the safety of the Grid shall be
subject to the consent of Party A). 

	
 

	
 

	
 

	
3.2.6
providing to Party A the information of operation and production of the equipments
in the Power Plant, including the fuels and water condition etc. in a timely,
accurate, objective and complete manner. 

	
 

	
 

	
 

	
3.2.7
establishing the on-site operation regulations which conform to the rules and
regulations of power system of Party A and submitting to Party A for filling.

	
 

	
 

	
 

	
3.2.8
taking measures to prevent the accident which may affect the safe and stable
operation of the power system and avoid the failure propagation; coordinating
with Party A to carry out regularly various specific and professional
inspections which matters the safety of the Grid, and implementing the
anti-failure measures proposed during the inspection. Where the Dispatching
Agency has specified the anti-failure measures or other safety requirements
of the power system, Party B shall implement, operate and maintain as
required. Party B shall submit the relevant documents in respect of safety
measures for filling, and attending the joint counter-accident exercise
organized by the Dispatching Agency. 

	
 

	
 

	
 

	
3.2.9
coordinating with Party A to investigate the accident of the Grid. 

	
 

	
 

	
4

	
Conditions of Grid Connection 

	
 

	
 

	
4.1

	
The
primary and secondary equipments of Party B shall conform to the national
standards, the power industrial standards and other relevant regulations,
have been installed and commissioned in accordance with the design
requirements examined and approved by the authorized organization, and
accepted through the infrastructure procedures set out by the state; with the
normal Grid connection operation mode being specified, the relevant factors
being matched reasonably, and the setting value of the equipments being set
in accordance with the requirements, which has been qualified for the
connecting with the Party A’s Grid and accepting the centralized dispatch of
the Dispatching Agency. 

6

	
 

	
 

	
4.2

	
The relay
protection and security automatic device in the Power Plant (including the
excitation system, PPS and speed control system) shall conform to the
national standards, the power industrial standards and other relevant
regulations, have been installed and commissioned in accordance with the
design requirements examined and approved by the authorized organization,
accepted through the infrastructure procedures set out by the state, and
conform to the relevant provisions of Clause 10 of this Agreement; 

	
 

	
 

	
4.3

	
The
dispatching automation facilities in the Power Plant (including AGC and AVC)
shall conform to the national standards, the power industrial standards and
other relevant regulations, have been installed and commissioned in
accordance with the design requirements examined and approved by the
authorized organization, accepted through the infrastructure procedures set
out by the state, and conform to the relevant provisions of Clause 11 of this
Agreement; 

	
 

	
 

	
4.4

	
The
dispatching communication facilities in the Power Plant shall conform to the
national standards, the power industrial standards and other relevant
regulations, have been installed and commissioned in accordance with the
design requirements examined and approved by the authorized organization,
accepted through the infrastructure procedures set out by the state, and
conform to the relevant provisions of Clause 12 of this Agreement; 

	
 

	
 

	
4.5

	
The power
energy metering device has been configured in accordance with Technical
Administrative Code of Electric Energy Metering (DL/T 448-2000) and passed
the test and acceptance organized jointly by both Parties. 

	
 

	
 

	
4.6

	
The
secondary system of the Power Plant has taken the security and protection
measures in accordance with the Regulations on the Security and Protection
for the Electric Secondary System (Order No. 5 of the Sate Electricity
Regulatory Commission), and with the admission of the Dispatching Agency,
qualified for the operation. 

	
 

	
 

	
4.7

	
All the necessary
regulations on operation and maintenance of the Power Plant and the relevant
management systems have been established, in which the part related with the
safety of the Grid shall be consistent with the security management
regulations of the Grid. 

	
 

	
 

	
4.8

	
The
operation on-duty personnel of the Power Plant shall accept the pre-job
training by the Dispatching Agency and obtain the qualification certificate
to accept the dispatching instructions in accordance with the Rules of the
Grid Dispatching Management and relevant regulations. 

	
 

	
 

	
4.9

	
The
corresponding primary and secondary equipments operated by Party A and Party
B shall conform to the national standards, the power industrial standards and
other relevant regulations, have been installed and commissioned in
accordance with the design requirements examined and approved by the
authorized organization, and accepted through the infrastructure procedures
set out by the state; with the relevant factors being matched reasonably, and
the setting value of the equipments being set in accordance with the
requirements, which has been qualified for the connection and operation. 

	
 

	
 

	
4.10

	
In
respect of the Emergency which might occur following the connection of the
Power Plant with the Grid, both Parties have devised the corresponding
anti-failure measures and reported to the other Party for filling. 

	
 

	
 

	
4.11

	
The water
regime measuring and forecasting system has been connected with the
hydropower dispatching automation system of the Dispatching Agency and is available
for the real-time transmission of the information of water and rainfall of
the Power Plant. 

	
 

	
 

	
5

	
Application for Grid Connection and Acceptance 

	
 

	
 

	
5.1

	
The
connection of Party B’s Power Plant with the Grid must be applied to Party A
and be carried out in the required method following acceptance of Party A. 

	
 

	
 

	
5.2

	
Application
for Grid Connection 

7

	
 

	
 

	
 

	
Party B
shall submit the application for Grid connection to Dispatching Agency 15
days prior to the Date of Initial Connection of the Power Plant (unit). The
application for Grid connection shall include the basic information of the
equipments for this Grid connection, the acceptance, and the commission plan
and schedule of the Power Plant (unit) for Grid connection etc. with all the
documents set out in Clause 5.5 of this Agreement attached. 

	
 

	
 

	
5.3

	
Acceptance
of the Application 

	
 

	
 

	
 

	
Following
receiving the application for Grid connection by Party B, the Dispatching
Agency shall examine such application pursuant to Clause 4 of this Agreement and
other relevant regulations, reply Party B in a timely manner, and such reply
shall not be delayed unreasonably. 

	
 

	
 

	
 

	
5.3.1
Where the documents provided in the application for Grid connection are
proper, Party A shall confirm upon receipt of the application for Grid
connection. 

	
 

	
 

	
 

	
5.3.2
Where the documents provided in the application for Grid connection are
improper, Party A shall be entitled to refuse to confirm, but it shall notify
Party B the reasons why it did not confirm within 5 days upon receipt of the
application for Grid connection. 

	
 

	
 

	
5.4

	
Upon
confirmation of the application for Grid connection, both Parties shall make
arrangements in respect of the specific matters of the Grid connection of the
Power Plant. 

	
 

	
 

	
 

	
5.4.1
Party A shall provide the power system data related with the Power Plant
prior to the agreed Date of Initial Connection, including the setting value
(or limit) of relay protection of the Grid relevant with the Power Plant and
the setting value (or limit) of relay protection and security automatic
device of the Power Plant related with the Grid.

	
 

	
 

	
 

	
5.4.2 The
name list of the contact persons (including the personnel with rights to
order dispatch, operation mode personnel, unit and Grid coordination
personnel, relay protection personnel, automation personnel and communication
personnel etc.) and their contact information shall be provided to Party B.

	
 

	
 

	
 

	
5.4.3
Party B shall submit the Grid connection commission project and commission
schedule in accordance with the requirement of Party A within 5 days upon
reception of the confirmation of the notice, and agree the specific date and
procedure of the first Grid connection with the Dispatching Agency. Party B
shall simultaneously provide the name list of the on-duty personnel who is
available for accepting the dispatching orders and their contact information,
and the name list of the operation mode personnel, unit and Grid coordination
personnel, relay protection personnel, automation personnel and communication
personnel and their contact information.

	
 

	
 

	
 

	
5.4.4
Party A shall confirm in writing the Grid connection commission project and
commission schedule of the unit submitted by Party B prior to the Date of
Initial Connection of the Power Plant.

	
 

	
 

	
5.5

	
Party B
shall provide to Party A the accurate Chinese materials 90 days prior to the
Date of Initial Connection of the Power Plant (unit) (while the factors need
to be measured during the start-up of the Grid connection may be provided
within 30 days following the Grid connection of the unit, and the on-site
operation regulations may be provided 7 days prior to the Grid connection)
which include: 

	
 

	
 

	
 

	
(1) the
technical specifications, technical parameters and measured parameters
(including the zero sequence impendance parameters of the main transformer)
of the main equipments such as the power generator (including the speed
control and excitation system) and the main transformer etc. which are
necessary for the load flow and stability calculation and the setting
calculation of the relay protection. 

	
 

	
 

	
 

	
(2) the
documents such as the drawings (including the drawing of the whole set of
protection of the power generator and the transformer) and the specifications
etc. of the relay protection and the security automatic device related with
the operation of the Grid. 

8

	
 

	
 

	
 

	
(3) the
documents such as the technical specifications and technical parameters of
the dispatching automation equipments related with Party A, the telecontrol
information of the Power Plant (including the transformation ratio and the
telemetering value of the current transformer and potential transformer), the
relevant data of the power energy metering system of the Power Plant and the
water regime measuring and forecasting system, and the relevant plan and
technical data of the safety measures of the computer system of the Power
Plant. 

	
 

	
 

	
 

	
(4) the
documents such as the drawing of the communication engineering and the
technical specifications of the equipments interconnected or related with the
communication network of Party A etc. 

	
 

	
 

	
 

	
(5) the
technical specifications and drawing of the excitation system and PSS device
(designed and measured parameters), under excitation limitation, loss of
excitation and out of step protection, as well as the dynamic monitoring system.

	
 

	
 

	
 

	
(6) the
technical specifications and drawing of the unit speed control system
(designed and measured parameters). The start-up and shut-down curve and the
rate of the increase and decrease of the load, the designed minimum technical
output of the units and the vibration zone of the hydroelectric units, the
AGC and AVC of the units, and the relevant parameters and data of the primary
control. 

	
 

	
 

	
 

	
(7) other
key technical specifications, technical parameters and the measured
parameters related with the operation of the Grid. 

	
 

	
 

	
 

	
(8) the
regulations of the on-site operation. 

	
 

	
 

	
 

	
(9)
electrical wiring diagram. 

	
 

	
 

	
 

	
(10) the
measures intended to guarantee the service power of the plant which could
meet the security requirements of the Grid. 

	
 

	
 

	
6

	
Grid Connection and Dispatching during the Commissioning
Period 

	
 

	
 

	
6.1

	
Party B
shall conduct grid connection commissioning of the Power Plant in accordance
with the commissioning projects and the commissioning schedule confirmed by
the Party A. 

	
 

	
 

	
 

	
6.1.1 The
commissioning operation unit of the Power Plant shall be deemed as grid
connection operation equipment, and shall be integrated into the power system
for unified operation and management and subject to unified dispatch.

	
 

	
 

	
 

	
6.1.2 The
Power Plant shall formulate a detailed schedule for the commissioning of the
units connected to grid in accordance with the commissioning projects and the
commissioning schedule confirmed by the Party A, and report to the
Dispatching Agency unit by unit on the basis of the progress of the
commissioning (may also report the commissioning of all units all at once if
consented by the Dispatching Agency).

	
 

	
 

	
 

	
6.1.3
Detailed operation of the grid connection commissioning shall strictly follow
the dispatch instructions.

	
 

	
 

	
 

	
6.1.4
When operating the equipment wholly owned by the Power Plant that may
jeopardise the grid, the Power Plant must notify the Dispatch Agency to make
preparations against any possibility of an accident and strictly follow the
commissioning schedule.

	
 

	
 

	
 

	
6.1.5 The
commissioning unit must undergo the following tests and reach the relevant
technical indicators and meet the designing requirements;

	
 

	
 

	
 

	
(1) field
test of the modular parameters of the excitation system and the speed
regulation system; 

	
 

	
 

	
 

	
(2) PSS
on-spot test; 

9

	
 

	
 

	
 

	
(3)
Primary frequency regulation, test of AGC within the Power Plant and test of
AGC connected to the unit; 

	
 

	
 

	
 

	
(4) Test
of leading phase capability, minimum technical output and test of unit
vibration area. 

	
 

	
 

	
 

	
The grid connection
unit must pass the tests set out in (1), (2) and (3) above, and may conduct a
full-load commissioning only when approved by the Dispatch Agency. Tests set
out in (4) must be completed in the period of 3 months of operation, and a
test report must be submitted to the Dispatch Agency as scheduled. 

	
 

	
 

	
 

	
6.1.6 The
full-load commissioning of the unit must be conducted by following relevant
norms, and the results must be examined and approved by a relevant quality
supervisory agency. 

	
 

	
 

	
6.2

	
Party A shall
assist Party B in its grid connection commissioning. 

	
 

	
 

	
 

	
6.2.1
Party A shall formulate a special dispatch schedule according to the
requirements of the Power Plant and the conditions of the grid (including
Emergency addressing measures), rationally arrange the commissioning projects
and the commissioning schedule; and notify the Power Plant about the
commissioning schedule before the commissioning; 

	
 

	
 

	
 

	
6.2.2 The
two Parties may, after consultations, adjust the commissioning schedule in a
rolling manner in accordance with the progress of the unit commissioning and
the grid operation. 

	
 

	
 

	
7

	
Dispatching Operation 

	
 

	
 

	
7.1

	
The Power
Plant’s operator on duty must strictly follow the dispatching instructions of
the dispatcher on duty of the Dispatching Agency. 

	
 

	
 

	
 

	
7.1.1 The
Power Plant must promptly and accurately carry out the dispatching
instructions of the Dispatching Agency, and must not refuse, or delay the
implementation of, the instruction on any excuse. If the Power Plant’s
operator on duty believes that the dispatching instruction is incorrect, he
or she must immediately report the same to the dispatcher who gives such
dispatching instruction. When the dispatcher conforms and re-issues the same
instruction, the operator must implement the instruction. If implementation
of that instruction will truly endanger personal, grid or equipment safety,
he or she should refuse the instruction, simultaneously give his or her
reasons for the refusal and propose an amendment to the dispatcher who gives
the instruction, and simultaneously report the same to his or her immediate
superiors. 

	
 

	
 

	
 

	
7.1.2 For
the equipment used for direct dispatching by the Dispatching Agency, the
Power Plant must strictly abide by relevant dispatching operation rules,
operate such equipment according to the dispatching instructions, truthfully
report the actual on-spot situation and answer any query raised by the
Dispatching Agency’s dispatcher on duty. 

	
 

	
 

	
 

	
7.1.3 For
the equipment, operation of which needs the permission of the Dispatching
Agency, the Power Plant’s operator on duty must obtain consent of the
Dispatching Agency’s dispatcher on duty before operating such equipment. Only
when the consent is obtained, may the operator operate the equipment in
accordance with the Dispatching Regulations of Power System and the Power
Plant On-sport Operation Regulations. 

	
 

	
 

	
7.2

	
The
Dispatching Agency shall arrange the Daily Generation Dispatch Schedule Curve
of the Power Plant in a reasonable manner in accordance with relevant
requirements. In operation, the dispatcher may appropriately moderate the
Daily Generation Dispatch Schedule Curve according to actual operation. 

	
 

	
 

	
7.3

	
If the
Power Plant’s equipment operates in an abnormal manner, the Power Plant shall
act in accordance with the provisions of the Dispatching Regulations of Power
System. 

	
 

	
 

	
7.4

	
The
Dispatching Agency shall arrange the Power Plant to participate in the peak
regulation, frequency regulation, voltage regulation and reserve in a safe,
efficient, economical manner and in the principle that the regulation range
of the units of the same grid and same type in terms of 

10

	
 

	
 

	
 

	
 

	
technical
conditions should be, by and large, the same, while in consideration of the
grid structure and the electrical technology level of the Power Plant.

	
 

	
 

	
 

	
 

	
7.4.1
Peak regulation

	
 

	
 

	
 

	
 

	
 

	
The Power
Plant shall participate in the peak regulation of the power system in
accordance with Nujiang Grid Dispatching Administration Regulations, and the
capacity of the unit. The range of regulation shall meet the designing
standard. 

	
 

	
 

	
 

	
 

	
7.4.2
Frequency regulation

	
 

	
 

	
 

	
 

	
 

	
The Power
Plant shall participate in the frequency regulation of the power system in
accordance with the requirements set out in the Nujiang Grid Dispatching
Administration Regulations. 

	
 

	
 

	
 

	
 

	
 

	
The
setting parameters and the response speed of the unit’s capacity shall meet
the requirements for safe grid operation, and shall be set by the Dispatching
Agency according to the unit’s properties and testing results. Once set,
Party B must not change them without authorization. The entry or exit of the
AGC of the unit shall follow the dispatching instructions. 

	
 

	
 

	
 

	
 

	
7.4.3
Voltage regulation

	
 

	
 

	
 

	
 

	
 

	
The Power
Plant shall operate in accordance with the reactive capacity curve (or
voltage curve) issued by the Dispatching Agency so as to ensure that the
operation of the bus of the Power Plant is in the prescribed scope. If the
Power Plant has lost its control of voltage, it shall immediately report it
to the dispatcher on duty of the Dispatching Agency.

	
 

	
 

	
 

	
 

	
7.4.4
Reserve

	
 

	
 

	
 

	
 

	
 

	
The Power
Plant shall keep a certain proportion of the spinning reserve capacity as
required by the Dispatching Agency. When the spinning reserve capacity is
insufficient to meet the requirement of the Dispatching Agency, it shall
immediately report the same to the dispatcher on duty of the Dispatching
Agency.

	
 

	
 

	
 

	
7.5

	
If Party
A occurs any special operation mode as a result of equipment upgrading or any
other reasons, which may affect the normal operation of the Power Plant, the
Dispatching Agency shall notify the Power Plant the relevant solution in
advance, and implement the agreed solution.

	
 

	
 

	
7.6

	
If Party
B occurs any special operation mode as a result of equipment upgrading or any
other reasons, which may affect the normal operation of the grid, it shall
notify the Dispatching Agency the relevant amendment solution in advance, and
implement the agreed solution.

	
 

	
 

	
7.7

	
The
Dispatching Agency shall regularly organize power plants connected to the
grid to attend grid dispatching operation meetings to analyse the grid
operation, estimate new developments of the power system, report the
implementation of the grid safety technology measures, discuss and address
major issues concerning the operation of the power system. Party B shall
report the operation of the Power Plant and implementation of the safety
technology measures of the Power Plant.

	
 

	
 

	
7.8

	
Party A
and Party B shall exchange the name lists of personnel on duty. In case of
any change of such personnel, the Party concerned shall notify the other in
writing 5 days prior to the change.

	
 

	
 

	
8

	
Power Generation Schedule

	
 

	
 

	
 

	
8.1

	
Party B
shall submit a power generation schedule of the year, month, public holidays
or the special operation mode in accordance with the signed Power Purchase
and Sale Contract, actual conditions of the Power Plant as well as the
following requirements:

11

	
 

	
 

	
 

	
(1) Party
B shall submit to Party A a proposal of the power generation schedule of the
next year 15 days prior to the first connection of the unit to the grid, and
before October 31 of each of subsequent years. 

	
 

	
 

	
 

	
(2) Party
B shall submit to Party A a proposal of the power generation schedule of the
next month before 20th of each month. 

	
 

	
 

	
 

	
(3) Party
B shall submit to Party A a proposal of the power generation schedule of the
period of occurrence of the special operation mode 3 days before the
occurrence of the special operation mode. 

	
 

	
 

	
8.2

	
Party A
shall notify Party B its power generation schedule of the next month before
28th of each month. 

	
 

	
 

	
8.3

	
Pursuant
to the monthly power generation schedule formulated in accordance with Clause
8.2, actual grid conditions and the data provided by the Power Plant (the
Power Plant must declare to the Dispatching Agency the maximum Available Capacity
of Unit and changes of the Available Capacity of Unit of the next day before
11:00 each day; it shall also report any defect or breakdown which affects
the capability of the power generation equipment, as well as the adoption of
AGC in the unit), the Dispatching Agency shall formulate the Daily Generation
Dispatch Schedule Curve of the next day of the Power Plant and issue such
Daily Generation Dispatch Schedule Curve to the Power Plant before 18:00 each
day. 

	
 

	
 

	
8.4

	
The Power
Plant shall strictly implement the Daily Generation Dispatch Schedule Curve
(including temporary amendment to the curve by the dispatcher on duty) and
the dispatching instructions issued by the Dispatching Agency, timely adjust
the active output of the unit, and arrange its production. 

	
 

	
 

	
9

	
Equipment Maintenance 

	
 

	
 

	
9.1

	
The
maintenance of the equipments in the Power Plant for Grid connected operation
shall be carried out as scheduled. 

	
 

	
 

	
 

	
9.1.1
Party B shall submit the proposed annual, monthly, holiday and special
operation mode equipment maintenance schedules to the Dispatching Agency upon
provision of the proposed annual, monthly, holiday and special operation mode
power generation schedules to Party A. 

	
 

	
 

	
 

	
9.1.2
Following mutual consultations between both Parties, the Dispatching Agency
shall incorporate the equipment maintenance schedule of the Power Plant into
the annual, monthly, holiday and special operation mode maintenance schedule
of the power system. 

	
 

	
 

	
 

	
(1) The
Power Plant shall be notified of the certified annual equipment maintenance
schedule of the Power Plant for the next year prior to 31 December each year.

	
 

	
 

	
 

	
(2) The
Power Plant shall be notified of the certified monthly equipment maintenance
schedule of the Power Plant for the next month prior to the 28th day of each
month. 

	
 

	
 

	
 

	
(3) The
Power Plant shall be notified of the special operation mode equipment
maintenance schedule prior to the occurrence of the special operation mode. 

	
 

	
 

	
9.2

	
If the
Power Plant needs to eliminate the defects during the valley period of load,
it shall apply in advance to the Dispatching Agency, and the Dispatching
Agency shall try to arrange it in consideration of the conditions of the Grid
and amend the daily power generation schedule curve in a timely manner. 

	
 

	
 

	
9.3

	
Application
for Maintenance and Reply 

	
 

	
 

	
 

	
The Power
Plant shall submit the application for maintenance to the Dispatching Agency
in advance, and the actual maintenance of the equipments in the Power Plant
shall not commence until the approval is obtained. 

12

	
 

	
 

	
 

	
The
application for maintenance shall be submitted to the Dispatching Agency in
accordance with the relevant regulations prior to the commencement of the
actual maintenance. 

	
 

	
 

	
9.4

	
In
respect of the equipment maintenance which has obtained the approval, it
shall not commence until the on-duty dispatcher agrees prior to the change of
the status of the equipment. If the equipment maintenance has been completed,
the status shall not be changed until the permission of the on-duty
dispatcher is obtained. Party B shall complete the maintenance strictly in
accordance with the approved maintenance schedule. 

	
 

	
 

	
 

	
9.4.1
Where the Power Plant fails to carry out the maintenance as scheduled due to
its own reasons, it shall apply to the Dispatching Agency for amending the
maintenance schedule prior to 3 business days upon the scheduled commencement
of the maintenance. The Dispatching Agency shall adjust the maintenance
schedule reasonably in consideration of the operation of the Grid. Where it
could be arranged, the Power Plant shall be notified of the adjusted
maintenance schedule in advance; where it could not be arranged indeed, the
Power Plant shall make all its efforts to implement as the originally
scheduled, otherwise, the Dispatching Agency will not in principle arrange
another scheduled maintenance in the same year. 

	
 

	
 

	
 

	
9.4.2
Where the maintenance needs to be postponed, the Power Plant shall apply to
the Dispatching Agency for handling the procedures to postpone the
maintenance prior to the end of the first half of the approved maintenance
period. 

	
 

	
 

	
 

	
9.4.3
Where the Power Plant fails to carry out the maintenance as scheduled due to
the demand of the operation of the power system, the Dispatching Agency shall
negotiate with the Power Plant in advance, to adjust the maintenance schedule
and notify the Power Plant. If the unit must operate in the extended term of
service, both Parties shall negotiate to work out the emergency measures in
respect of the Emergency which could occur during the operation of the unit
in the extended term of service, and the procedure of changing into the
status of maintenance and then handle in accordance with the relevant
regulations. 

	
 

	
 

	
9.5

	
If the
maintenance of the primary equipments of the Grid affects the output of the Power
Plant, it shall be coordinated with the maintenance (or shutdown and standby)
of the equipments in the Power Plant as much as possible. 

	
 

	
 

	
9.6

	
The
Dispatching Agency shall reasonably arrange the maintenance of the secondary
equipments of the Grid and the Power Plant such as relay protection and
security automatic device, power dispatching automation and power dispatching
communication system etc. in its jurisdiction of dispatching. In principle,
the maintenance of the secondary equipments shall not affect the normal
operation of the primary equipments. Otherwise, it shall be coordinated with
the maintenance of the primary equipments as much as possible. 

	
 

	
 

	
9.7

	
Upon
completion of the maintenance of the equipments, the Power Plant shall report
to the Dispatching Agency in a timely manner and resume the operation of the
equipments in accordance with the regulations. 

	
 

	
 

	
9.8

	
Where the
maintenance of the equipments in the Power Plant has not be carried out as
scheduled, it shall be tallied and assessed in accordance with Unplanned
Outage. 

	
 

	
 

	
10

	
Relay Protection and Security Automatic Device 

	
 

	
 

	
10.1

	
The
Dispatching Agency of Party A shall be responsible for the dispatching
management of the relay protection and security automatic device in its
jurisdiction of dispatching, and carry out the following work: 

	
 

	
 

	
 

	
(1) upon
the occurrence of the tripping of the relay protection and security automatic
device, coordinating with Party B to analyze and handle the accident. 

	
 

	
 

	
 

	
(2) upon
the occurrence of the false tripping or defect of the relay protection and
security automatic device, urging, instructing and coordinating Party B to
handle in a timely manner. 

13

	
 

	
 

	
 

	
(3)
instructing and coordinating with the Power Plant in respect of the setting
and operation related with the relay protection and security automatic
device. 

	
 

	
 

	
10.2

	
Party B
shall be responsible for the operation management of the relay protection and
security automatic device which belong to it, and carry out the following
work: 

	
 

	
 

	
 

	
(1) being
responsible for the calculation of setting and operation maintenance of the
relay protection and security automatic device which belong to the Power
Plant, analyze and assess the tripping of the device and report to the
Dispatching Agency. 

	
 

	
 

	
 

	
(2) commissioning,
verifying and maintaining the relay protection and security automatic device
which belong to it, in order to keep them conforming to the technical
requirements of the device and the requirements of setting, and keep the
complete commission report and record. 

	
 

	
 

	
 

	
(3) The
relay protection and security automatic device related with the operation of
the Grid must conform to the requirements of the Grid, and the model
selection of the relevant equipments shall obtain the consent of the
Dispatching Agency. 

	
 

	
 

	
 

	
(4) If
the status of the relay protection and security automatic device of Party A
has changed, the Power Plant shall change the setting value and operation
status of the relay protection and security automatic device which belong to
it in a timely manner in accordance with the requirements of the Dispatching
Agency. 

	
 

	
 

	
 

	
(5) upon
the occurrence of the tripping of the relay protection and security automatic
device in the Power Plant, Party B shall report to the on-duty personnel of
the Dispatching Agency in a timely manner and analyze and handle in
accordance with the regulations, submit the relevant documents to the
Dispatching Agency and coordinate with it to analyze and handle the accident
in accordance with its requirements. 

	
 

	
 

	
 

	
(6) upon
the occurrence of the false tripping or defects of the relay protection and
security automatic device, Party B shall report to the on-duty personnel of
the Dispatching Agency in a timely manner, handle in accordance with the
regulations, analyze the reasons and take the counter measures, as well as
submit the relevant issues in writing to the Dispatching Agency. 

	
 

	
 

	
 

	
(7)
implementing strictly the anti-failure measures of the relay protection and
security automatic device required by Party A. 

	
 

	
 

	
 

	
(8) completing
the operation analysis report of the relay protection (including the circuit
protection, transformer protection, generator protection and bus protection
etc.) and security automatic device of the Power Plant in the previous month
prior to the 5th business day of each month, and providing to the Dispatching
Agency. 

	
 

	
 

	
10.3

	
In order
to improve the stability of the power system, both Parties shall update and
renovate the equipments in a timely manner. 

	
 

	
 

	
 

	
10.3.1
The renovation of the relay protection and security automatic device shall be
coordinated with each other to ensure the compatibility of the equipments of
both Parties. 

	
 

	
 

	
 

	
10.3.2
The renovated equipment must be commissioned and accepted, and put into
operation in accordance with the established procedure upon confirmation of
acceptability. 

	
 

	
 

	
10.4

	
The relay
protection and security automatic device of Party B shall meet the following
key indicators (with no considerations of the false tripping and rejection): 

	
 

	
 

	
 

	
(1) The
completion rate of verification of the relay protection and security
automatic device required to be verified shall be 100%; 

	
 

	
 

	
 

	
(2) The
in-service rate of the circuit fast protection, bus differential protection
and the security automatic device shall be 100%; 

14

	
 

	
 

	
 

	
 

	
(3) The
hit rate of the operation of all protections > 99.63%; 

	
 

	
 

	
 

	
(4) The
intact fault recording rate shall be 100%.

	
 

	
 

	
10.5

	
Both
Parties shall appoint separately the personnel to be responsible for the
operation and maintenance of the relay protection and security automatic
device, to ensure the normal operation of the relay protection and security
automatic device.

	
 

	
 

	
11

	
Dispatching Automation and Power Energy Collecting Device

	
 

	
 

	
11.1

	
Party A,
the Dispatching Agency, shall be responsible for the management of the
dispatching automation system and conducting the following work within its
scope of authorization in respect of the dispatching work:

	
 

	
 

	
 

	
(1)
supervising the reliability of the operation of the dispatching automation
system, monitoring the operation of the power energy automation system,
assisting Party B with its investigation of any accident; urging, guiding and
coordinating with Party B in addressing any defects of the automation
equipment;

	
 

	
 

	
 

	
(2)
providing conditions for connection of the automation signals of the Power
Plant in accordance with designing requirements;

	
 

	
 

	
 

	
(3)
promptly and accurately transmitting the relevant signals of the system to
the dispatching automation system of the Power Plant;

	
 

	
 

	
 

	
(4)
analysing the cause of any breakdown of the dispatching automation system in
a timely manner and taking prevention measures;

	
 

	
 

	
 

	
(5)
urging, guiding the implementation of the Regulations on the Safety and
Protection of the Second System of the Power Energy issued by the State Electricity
Regulatory Commission.

	
 

	
 

	
11.2

	
Party B
shall be responsible for the operation and maintenance of the dispatch
automation and the electricity measuring equipment on the end of the Power
Plant and conduct the following work:

	
 

	
 

	
 

	
(1) The
remote terminal data and the electric quantity measurement data of the Power
Plant’s RTU, computer monitoring system, electric quantity collecting and
transmission device shall be transmitted to the relevant dispatching
automation system and the electric quantity measurement system in accordance
with the transmission regulations. The electric quantity measurement system
shall pass the tests conducted by a qualified inspector acceptable to both
Parties so as to ensure the correct transmission of the data. The data collecting
times and accuracy of the real-time information of the operation of the
equipment of the Power Plant shall satisfy the operation requirements of
relevant regulations and the Dispatching Agency.

	
 

	
 

	
 

	
(2) Party
B shall satisfy Party A’s requirements in respect of the collection and
application of the information of the protection (breakdown) information
system, water adjustment automation system, WAMS system, etc.

	
 

	
 

	
 

	
(3) Party
B shall collect the following automation information and transmit the same
directly to Party A:

	
 

	
 

	
 

	
 

	
 

	
1) Remote
monitoring signals 

	
 

	
 

	
 

	
 

	
 

	
Active
power, reactive power, current, voltage, power factor of the line; active
power, reactive power, current, voltage of the two sides of the transformer;
active power, reactive power, current, voltage, frequency of the terminal of
the unit; reactive power and current of the capacitor and the reactor (set);
voltage and frequency of various section of the bus; the upper limit of the
output of each unit; the lower limit of the output of each unit; response
speed rate of each unit; returned value of the target fixed value of each
unit or the whole plant.

15

	
 

	
 

	
 

	
 

	
 

	
2) Remote
communication signals 

	
 

	
 

	
 

	
 

	
 

	
General
signal of accident of the Power Plant; signals of the locations of all
breakers, isolation switch, grounding switch; action SOE of the breaker of
the whole plant; signals of PSS in service and out of service; primary
frequency regulation in service and out of service; signals of increase,
close or lockup of the load of each unit or the whole plant; whether the AGG
is allowed to be in service in DCS system of the unit. 

	
 

	
 

	
 

	
 

	
 

	
3) Remote
regulation signals 

	
 

	
 

	
 

	
 

	
 

	
Control
value of AGC real-time points (single unit / whole plant control mode). 

	
 

	
 

	
 

	
(4) Party
B shall timely analyze the causes of the breakdown of its dispatching
automation and relevant systems, take prevention measures.

	
 

	
 

	
 

	
(5) Party
B shall assist Party A with its dispatching of automation, and operation and
maintenance of relevant systems, cooperate with Party A with its
investigation of an accident.

	
 

	
 

	
 

	
(6) The
computer monitoring system of the Power Plant must be in compliance with the
Regulations on the Safety and Protection of the Second System of the Power
Energy issued by the State Electricity Regulatory Commission.

	
 

	
 

	
 

	
(7) When
the Power Plant (unit) equipped with AGC participates in the grid’s power
generation control, the AGC instructions issued by the Dispatching Agency
shall be able to be transmitted correctly to the AGC system of the Power
Plant through the Power Plant’s RTU or the computer monitoring system.

	
 

	
 

	
 

	
(8) A new
unit must complete AGC function test and the system commissioning during the
grid connection commissioning period, and be subject to the AGC control of
the Dispatching Agency after the end of such commissioning.

	
 

	
 

	
 

	
(9) The
remote terminal equipment connected to Party A’s automation system and the
monitoring system shall satisfy the relevant technical requirements of the
dispatching automation raised by Party A.

	
 

	
 

	
 

	
(10) The
kilowatt-hour meters at the electric quantity measurement gateway must have a
main back-up meter (0.2S class) as required by the Power Plant’s on-grid
circuit. If a unit needs more than 3 kilowatt-hour meters according to the
rule of installation standard for a single meter (0.5S class), the electric
quantity collecting device and the kilowatt-hour meter that meet the
requirements of Party A in terms of models shall be installed, and shall also
satisfy the requirements and conditions for connecting the same to Party A’s
electric quantity collecting system. Party B shall be responsible for the
communication channel for the collected electric quantity data as required by
Party A, and bear the costs for its operation.

	
 

	
 

	
 

	
(11)
Party B shall conduct a transmission test on the collected signals of remote
terminals and remote communications (breakers, isolating switches) at a fixed
date each year in conjunction with the overhaul plan of the Power Plant, and
regularly calibrate the collected volume of remote terminal and remote
communication signals. After the test, Party B shall submit the testing
report to the Dispatching Agency.

	
 

	
 

	
 

	
(12) The
monitoring system of the hydroelectric plant shall be able to receive the
daily power generation dispatching schedule issued by Party A’s dispatching
office.

	
 

	
 

	
 

	
(13)
Party B shall submit the statement of the previous month to the Dispatching
Agency as required on the 3rd day of each month. Party A shall assess
responsible entity in accordance with relevant rules and regulations.

	
 

	
 

	
11.3

	
Both
Parties shall conduct maintenance of the automation equipment in accordance
with the Regulations of Nujiang Grid Dispatching Management, and must not
wilfully withdraw or cease such equipment.

16

	
 

	
 

	
11.4

	
The Power
Plant’s RTU, computer monitoring system, electric quantity collecting and
transmission device shall meet the following major operation indicators: 

	
 

	
 

	
 

	
(1) The
availability rate (month) of the remote terminal stations of the RTU or the
computer monitoring system must be 99.8% or more. 

	
 

	
 

	
 

	
(2) The
monthly qualified rate of the remote monitoring must be 98% or more. 

	
 

	
 

	
 

	
(3) The
monthly qualified rate of the remote communication must be 100%. 

	
 

	
 

	
 

	
(4) The
success rate of the remote control or remote regulation of the station must
be 100%. 

	
 

	
 

	
 

	
(5) The
availability rate of the remote electric quantity collecting device must be
100%. 

	
 

	
 

	
 

	
(6) The
availability rate of the unit AGC must be 98% or more; the in-service rate of
the hydroelectric unit AGC must be 98% or more. 

	
 

	
 

	
11.5

	
Each Party
shall appoint a dedicated person(s) to be in charge of the operation and
maintenance of its own dispatching automation system, and ensure the normal
operation of such automation system. 

	
 

	
 

	
12

	
Dispatching Communication 

	
 

	
 

	
12.1

	
Party A
shall be responsible for the operation and maintenance of the dispatching
communication system at the dispatching terminal, and conduct the following
work: 

	
 

	
 

	
 

	
(1)
supervising the reliability of the operation of the dispatching communication
system, be responsible for monitoring and regulation of the operation of the
communication system, and coordinating in case of any material issue arising
in operation; 

	
 

	
 

	
 

	
(2) be
responsible for the operation and maintenance of the communication equipment
and line at the end of dispatching terminal; 

	
 

	
 

	
 

	
(3)
analysing the cause of any breakdown of the dispatching communication system
in a timely manner and taking prevention measures; 

	
 

	
 

	
 

	
(4)
urging, guiding and coordinating the operation and maintenance of Party B’s
dispatching communication system, and assisting Party B with its
investigation of any accident. 

	
 

	
 

	
12.2

	
Party B
shall be responsible for the operation and maintenance of the dispatching
communication system at the terminal of the Power Plant, and meet the
following requirements: 

	
 

	
 

	
 

	
(1) be
responsible for the operation and maintenance of the dispatching
communication system at the terminal of the Power Plant, and guarantee its
reliable operation; conducting statistical analysis of the operation,
assessment of the operation, and submitting the statement to Party A on a
monthly basis; 

	
 

	
 

	
 

	
(2)
analysing the cause of any breakdown of the dispatching communication system
in a timely manner and taking prevention measures; 

	
 

	
 

	
 

	
(3)
assisting Party A with its operation and maintenance of the dispatching
communication system, abiding by Party A’s dispatching instructions, and
assisting Party A with its investigation of any accident. 

	
 

	
 

	
12.3

	
Party B’s
communication equipment for the connection to the power communication network
of Party A shall be identical in terms of model and figuration, and obtain
Party A’s approval. Technical proposal may be adopted for connection to the
power communication network only when it has been approved by Party A’s
department in charge of communication. 

17

	
 

	
 

	
12.4

	
The
carrier frequency, wireless radio frequency of Party B must be the same as
that of power communication network of Party A; Party B must apply to Party A
for the use of the same, and may use them only when they are approved and
given written consent by Party A. 

	
 

	
 

	
12.5

	
Both
Parties shall have alternative communication system, and ensure the smooth
transmission of communications between the grid and the Power Plant. 

	
 

	
 

	
12.6

	
Party B’s
dispatching communication system shall reach the following major operation
indicators: 

1) The operation rate of the optical communication equipment must
be 99.98% or more. 

2) The operation rate of the dispatching exchange
equipment must be 99.85% or more. 

3) The operation rate of the carrier equipment
must be 99.93% or more. 

4) The inadequacy rate of equipment must be 100%. 

5)
The operation rate of the network equipment must be 99.99% or more. 

	
 

	
 

	
12.7

	
Each
Party shall appoint a dedicated person(s) to be in charge of the operation
and maintenance of its own dispatching communication system, and ensure the
normal operation of such communication system. 

	
 

	
 

	
13

	
Other Requirements to Ensure the Safe Operation of the Grid

	
 

	
 

	
13.1

	
Primary
Frequency Regulation Function of the Unit 

	
 

	
 

	
 

	
13.1.1 All units connected to Yunnan electric
grid shall have and perform the function of primary frequency regulation. The
primary frequency regulation test of Party B’s new units shall be completed
prior to its full-load running test. Relevant test reports shall be provided
and implemented in the running. 

	
 

	
 

	
 

	
13.1.2
The Power Plant shall establish a complete management system to ensure the
function of the primary frequency regulation of the units can be performed
safely. If a unit fails to perform its function of the primary frequency
regulation, or the capability of the primary frequency regulation of the unit
changes, resulting in any adjustment of the fixed value, the Power Plant
shall promptly make an application to the Dispatching Agency and stop the
function of the primary frequency regulation with its approval. 

	
 

	
 

	
 

	
13.1.3
The real-time switching-on/off signals of the primary frequency regulation
function shall be sent to the SCADA/EMS system of relevant Dispatching
Agency, and switching-on time period of the primary frequency regulation of
the unit shall be recorded automatically. 

	
 

	
 

	
 

	
13.1.4 If
any parameter related to the primary frequency regulation function is
changed, various data must meet the technical standards of the primary
frequency regulation. Relevant materials shall be submitted within one
business day after such change. After the equipment modification or overhaul
related to the primary frequency regulation function of the unit, relevant
test shall be conducted, and the acceptance form of application of the
primary frequency regulation function shall be submitted to the Dispatching
Agency within three business days after such test. Relevant test materials
shall be submitted within one month. 

	
 

	
 

	
 

	
13.1.5
The Power Plant shall submit relevant test plan of the primary frequency
regulation to competent Dispatching Agency two weeks prior to such test, and
provide formal test report within two weeks after the completion of such
test. The test results shall be examined and accepted by competent Dispatching
Agency. 

	
 

	
 

	
 

	
13.1.6
The Power Plant shall procure the primary frequency regulation function of
its units shall meet the technical requirements as follows: 

	
 

	
 

	
 

	
(1) the
permanent slip rate shall be no more than 4%; 

18

	
 

	
 

	
 

	
(2) the
speed dead band of the main servomotor on the side iX shall be no more than
0.08%; 

	
 

	
 

	
 

	
the dead
time of the servomotor shall be no more than 0.3S; 

	
 

	
 

	
 

	
(3) the
dead band of the primary frequency regulation of the units shall be no more
than ±0.1Hz; the lag time of response of the primary frequency regulation
shall be no more than 3 seconds and the stable time shall be less than 60
seconds. Where the variation of the grid frequency exceeds the dead band of
the primary frequency regulation of the unit, the average deviation between
the actual capacity output of the unit and the response target of the unit
shall be within ±3% of the rated actual output of the unit; 

	
 

	
 

	
 

	
(4) there
is no restriction on the variation of the load of the unit’s primary
frequency regulation. 

	
 

	
 

	
 

	
13.1.7
The materials and data related to the primary frequency regulation submitted
by Power Plant to the Dispatching Agency shall include: 

	
 

	
 

	
 

	
(1) the
acceptance form of application of the primary frequency regulation function; 

	
 

	
 

	
 

	
(2)
transfer function of the speed governing system, parameters of various stages
and relevant test reports; 

	
 

	
 

	
 

	
(3)
testing reports of he permanent slip rate of the speed governing system, the
speed dead band iX and the dead time of the servomotor; 

	
 

	
 

	
 

	
(4) the
curve of variation of the unit load with the frequency in the dynamic test of
the primary frequency regulation of the unit. The sampling time period shall
be no more than 1s. 

	
 

	
 

	
13.2

	
Field
Measurement of Parameters of the Unit Speed-governing System Model 

	
 

	
 

	
 

	
13.2.1
The field measurement of the parameters of the speed-governing system model
of Party B’s unit shall be completed prior to the full-load running test. 

	
 

	
 

	
 

	
13.2.2
The Power Plant shall submit the plan for field measurement test of the
parameters of the speed-governing system model to competent Dispatching
Agency two weeks prior to the test. A formal test report shall be submitted
within two weeks after the completion of such test. The test results shall be
examined and accepted by competent Dispatching Agency. 

	
 

	
 

	
13.3

	
Function
of Excitation System of Unit 

	
 

	
 

	
 

	
13.3.1
The excitation systems of all units connected to regional power system of
Yunnan electric grid shall meet the requirements of Yunnan grid in terms of
safe and stable operation; 

	
 

	
 

	
 

	
13.3.2
The excitation systems of Party B’s units shall be equipped with PSS; 

	
 

	
 

	
 

	
13.3.3
The Power Plant shall provide the Dispatching Agency with the type of the
excitation system, the transfer function model and relevant design parameters
prior to the connection of a new unit. The field measurement of the
excitation system and PSS on-site testing shall be completed prior to the
full-load running test of the unit. 

	
 

	
 

	
 

	
13.3.4
Party B’s Power Plant shall procure the PSS function of the units can be
performed safely according to relevant requirements. The real-time
switching-on/off signals shall be transmitted to the Dispatching Agency for
dispatching the automatic system. The Power Plant can cease the PSS function
of the units only when its application to the Dispatching Agency has been
approved. 

	
 

	
 

	
 

	
13.3.5
The Power Plant shall submit the plan for field measurement of the parameters
of the excitation model and the plan for PSS on-site testing to competent
Dispatching Agency two weeks prior to such tests. Formal test reports shall
be submitted within two weeks after the completion of such tests. The test
results shall be examined and accepted by competent Dispatching Agency. 

19

	
 

	
 

	
 

	
13.3.6
The excitation systems of the units shall meet the technical requirements as
follows: 

	
 

	
 

	
 

	
(1) the
time of delay of self-parallel excitation system shall be no more than 0.03
second; 

	
 

	
 

	
 

	
(2) the
automatic regulating excitation system shall procure the accuracy of voltage
adjustment at the generator terminal shall be over 1%; 

	
 

	
 

	
 

	
(3) the
annual rate of Forced Outage of the excitation system shall be no more than
0.5%; 

	
 

	
 

	
 

	
(4) the
nominal response of the excitation system shall be no less than 2
unit/second; the rising time (reinforced excitation) of fast excitation
system (SCR excitation system and high initial response excitation system)
shall be no more than 0.08 second and the fall time (fast loss of excitation)
shall be no more than 0.15 second. 

	
 

	
 

	
 

	
(5) the
PSS function shall be performed reliably and no anti-regulation shall occur. 

	
 

	
 

	
13.4

	
Under-excitation
Test of the Units 

	
 

	
 

	
 

	
13.4.1
The under-excitation test of a new unit shall be completed prior to its
full-load running. Relevant test report shall be provided. 

	
 

	
 

	
 

	
13.4.2
The Power Plant shall submit the plan for the test to competent Dispatching
Agency two weeks prior to the test. A formal test report shall be submitted
within two weeks after the completion of such test. The test results shall be
examined and accepted by competent Dispatching Agency. 

	
 

	
 

	
13.5

	
Black
Start Test 

	
 

	
 

	
 

	
13.5.1
The Power Plant shall prepare its plan for black start and amend it every
year according to the requirements of the power grid and the actual situation
of the plant. Such plan shall be filed to the dispatching center for record. 

	
 

	
 

	
 

	
13.5.2
The Power Plant shall carry out self-start test as required by the
Dispatching Agency to see whether it has self-start capability. The test
results shall be examined and accepted by competent Dispatching Agency. 

	
 

	
 

	
14

	
Accident Handling and Investigation 

	
 

	
 

	
14.1

	
The
Dispatching Agency and the Power Plant shall handling any accident happened
within their control properly and promptly according to the Dispatching
Regulations of Power System and on-site operations regulations of the Power
Plant. The information related to the accident handling shall be notified one
another. 

	
 

	
 

	
14.2

	
The
equipment accident within the control of the Dispatching Agency shall be
handled strictly according to the instructions of the on-duty dispatcher (unless
it is an accident as set out in the on-site regulations which might put any
person or equipment at risk.) 

	
 

	
 

	
14.3

	
The
Dispatching Agency shall set down accident handling principles and detailed
anti-accident measures according the relevant regulations, the structure of
the grid, operation features and actual situation of the Power Plant, and
expressly give the requirements on necessary measures which the Power Plant
shall take (including black start test and its plan). 

	
 

	
 

	
 

	
14.3.1 In
case of any emergency which threatens the safety of the grid, the on-duty
dispatcher of the Dispatching Agency may take necessary steps to procure and
resume the safe operation of the grid, including adjusting the generation
output of the Power Plant, giving instructions of starting or stopping the
units, disconnecting the Power Plant from the grid, etc. 

	
 

	
 

	
 

	
14.3.2 If
the Power Plant or any unit is required to be disconnected, the Dispatching
Agency shall resume the connection and operation of the Power Plant or the unit
after such emergency is over or has been remedied. 

20

	
 

	
 

	
 

	
14.3.3
The Dispatching Agency shall explain the reason of disconnection of the Power
Plant or the unit to Party B thereafter. 

	
 

	
 

	
14.4

	
The Party
or both Parties claiming the occurrence of the accident shall investigate the
accident. The finding of the investigation shall include: the reason of the
accident, the party or parties who shall be liable for the accident and their
detailed liabilities, anti-accident measures to prevent similar accidents.
The Party who is liable for the accident shall bear relevant liabilities
according to the finding of the investigation and implement any anti-accident
measure in a timely manner. 

	
 

	
 

	
 

	
14.4.1 In
respect of any accident of the grid, where Party A is responsible for the
investigation, it shall invite Party B to investigate when Party B is
relevant. Party B shall support and cooperate with Party A in its
investigation by providing the fault recorded diagram, running status of the
accident, relevant data and other accident analysis materials. 

	
 

	
 

	
 

	
14.4.2 In
respect of any accident of the Power Plant, where Party B is responsible for
the investigation, it shall invite Party A to investigate when Party A is
relevant. Party A shall support and cooperate with Party B in its
investigation by providing the fault recorded diagram, running status of the
accident, relevant data and other accident analysis materials. 

	
 

	
 

	
 

	
14.4.3 In
respect of any accident related the grid and the Power Plant, if the cause
cannot be determined and agreed within a short period of time, both Parties
shall set up a special co-investigation team to investigate the accident
according to relevant regulations. 

	
 

	
 

	
 

	
14.4.4
The investigation report(s) related to the accident happened on one Party or
on both Parties shall be made public. The content of the report(s) shall
include: the cause of the accident, the handling process of the accident, the
party who is liable for the accident and the liabilities it shall bear, the
improvement plan and any preventative measures, etc. 

	
 

	
 

	
 

	
14.4.5
The Party who is liable for the accident shall remedy its fault in a timely
manner and implement any improvement plan and preventative measures. Where
the improvement plan and any preventative measures are relevant to the other
Party, they shall be accepted by such other Party. 

	
 

	
 

	
15

	
Force Majeure 

	
 

	
 

	
15.1

	
If the
occurrence of the Event of Force Majeure totally or partially prevents a
Party performing any of its obligations under this Agreement, such Party may
suspend performing its obligations, provided that: 

	
 

	
 

	
 

	
(1) the
extent to and time period for the obligation exemption and delay shall not
exceed the extent and time period as reasonably required for eliminating the
impact caused by the Event of Force Majeure; 

	
 

	
 

	
 

	
(2) the
Party which is affected by the Event of Force Majeure shall continue its
other obligations under this Agreement which are not affected by the Event of
Force Majeure; 

	
 

	
 

	
 

	
(3) once
the Event of Force Majeure ends, such Party shall resume the performance of
this Agreement as soon as possible. 

	
 

	
 

	
15.2

	
If any
Party is prevented from performing this Agreement due to any Event of Force
Majeure, such Party shall notify the other Party in writing within 3 days,
indicating the occurrence date of the Event of Force Majeure, the time period
during which the Event of Force Majeure is estimated to last, the nature of
the event, the impact on the performance of such Party of this Agreement, and
any measures that have been taken by such Party to reduce the impact of such
Event of Force Majeure. 

	
 

	
 

	
 

	
As
required by the other Party, the Party which is affected by any Event of
Force Majeure shall provide the other Party with an evidential document in
relation to the occurrence of the Event of Force Majeure within 30 days from
the date on which such event occurs (in case of interruption 

21

	
 

	
 

	
 

	
of
communication, from the date on which the communication resumes) issued by
the notary office in the place where the Force Majeure occurs. 

	
 

	
 

	
15.3

	
Both Parties
affected by the Event of Force Majeure shall take reasonable steps to reduce
the losses suffered by one or both of the Parties. Both Parties shall
negotiate and implement remedial plans and reasonable alternative measures in
a timely manner in order to reduce or eliminate the impact of the Event of
Force Majeure. 

	
 

	
 

	
 

	
If the
Party which is affected by the Event of Force Majeure fails to make its best
efforts to take reasonable measures to mitigate the influence of the Event of
Force Majeure, such Party shall bear any additional losses caused by such
act. 

	
 

	
 

	
16

	
Default Liability 

	
 

	
 

	
16.1

	
Any
Party’s failure to perform this Agreement shall be deemed as a breach of
contract, and the other Party shall be entitled to require the defaulting
party to bear the default liability. 

	
 

	
 

	
16.2

	
Where any
of the following default with respect to Party A occurs, it shall be liable
to Party B for such default: 

	
 

	
 

	
 

	
(1)
failing to perform the obligations set out in Clause 3, which results in the
direct economic loss to Party B. 

	
 

	
 

	
 

	
(2)
violating the provisions of Clause 4.2, which results in the failure of power
generation of the Power Plant or the direct economic loss to Party B. 

	
 

	
 

	
 

	
(3)
violating the provisions of Clause 5.3 and Clause 5.4, which results in the direct
economic loss to Party B. 

	
 

	
 

	
 

	
(4)
violating the provisions of Clause 6.2, which results in the direct economic
loss to Party B. 

	
 

	
 

	
 

	
(5) the
Dispatching Agency required the Power Plant (unit) to carry out the peak
modulation, frequency modulation and pressure modulation beyond is designed
capacity or the provisions of this Agreement, which results in the direct
economic loss to Party B. 

	
 

	
 

	
16.3

	
Where any
of the following default with respect to Party B occurs, it shall be liable
to Party A for such default: 

	
 

	
 

	
 

	
(1)
failing to perform the obligations set out in Clause 3, which results in the
direct economic loss to Party A. 

	
 

	
 

	
 

	
(2)
failing to complete the preparatory work the Grid connection pursuant to the
relevant provisions of Clause 4, which results in the direct economic loss to
Party A. 

	
 

	
 

	
 

	
(3)
violating the provisions of Clause 5.2 and Clause 5.4, which results in the
direct economic loss to Party A. 

	
 

	
 

	
 

	
(4)
violating the provisions of Clause 6.1 and Clause 7.1.1. 

	
 

	
 

	
 

	
(5) the
abnormal state or failure of the primary and secondary equipments in the
Power Plant related with the operation of the Grid due to Party B’s reason,
which results in the direct economic loss to Party A. 

	
 

	
 

	
 

	
(6)
failing to engage in the peak modulation, frequency modulation, pressure
modulation and standby of the power system pursuant to the provisions of
Clause 7.4. 

	
 

	
 

	
 

	
(7)
failing to report to the Dispatching Agency the actual condition of the
equipments (such as the generator, primary and secondary electric equipment
etc.) and the relevant facilities in the Power Plant. 

22

	
 

	
 

	
 

	
(8) the
relay protection and security automatic device in the Power Plant fail to
meet the index set out in Clause 10.2, or the relay protection and security
automatic device occur failure or does not work properly due to Party B’s
reason, which results in the accident and the expansion of the accident and
the direct economic loss of Party A. 

	
 

	
 

	
 

	
(9) the
dispatching automation system in the Power Plant fails to meet the indicators
set out in Clause 11.4, or the dispatching automation system occurs failure
due to Party B’s reason, which results in the accident and the expansion of
the accident and the direct economic loss of Party A. 

	
 

	
 

	
 

	
(10) the
dispatching communication system in the Power Plant fails to meet the
indicators set out in Clause 12.6, or the dispatching communication system
occurs failure due to Party B’s reason, which results in the accident and the
expansion of the accident and the direct economic loss of Party A. 

	
 

	
 

	
16.4

	
Where any
of the following material defaults with respect to Party B occurs, Party A
may take enforcement, even to split the defaulting Power Plant (unit). Party
B shall not be entitled to claim against Party A for the loss incurs due to
such split. 

	
 

	
 

	
 

	
(1) The
Power Plant started up the unit to connect with the Grid or shut down the
unit to split without the consent of the Dispatching Agency. 

	
 

	
 

	
 

	
(2) In
case of Emergency, the Power Plant violated the provisions of Clause 6.1 and
Clause 7.1.1. 

	
 

	
 

	
 

	
(3) In
case of Emergency, the Power Plant failed to report to the Dispatching Agency
the actual condition of the equipments (such as the generators, primary and
secondary electric equipments etc.) and the relevant facilities in the Power
Plant. 

	
 

	
 

	
16.5

	
Unless
otherwise set out in this Agreement, in case of the occurrence of any
default, the non-defaulting Party shall notify promptly the defaulting Party
to stop defaulting and deliver a writing notice to the defaulting Party to
request it to remedy the default and bear the default liability pursuant to
the provisions of this Agreement. 

	
 

	
 

	
16.6

	
The
defaulting Party shall promptly take measures to remedy its default, confirm
its default pursuant to the provisions of this Agreement and take the default
liability pursuant to the relevant clauses of the Power Purchase and Sale
Contract. 

	
 

	
 

	
16.7

	
Prior to
the expire of the term of performance set out in this Agreement, if either
Party expresses or implies with its acts that it will not perform its obligations
under this Agreement, the other Party may request it to take the default
liability. 

	
 

	
 

	
17

	
Effectiveness and Term of the Agreement 

	
 

	
 

	
 

	
This
Agreement shall come into force upon the execution by the legal
representatives or authorized representatives of both Parties and affixture
of seals of company, the term shall be one year (from the date of execution)
and this Agreement shall continue to be effective until the new agreement is
executed. 

	
 

	
 

	
18

	
Alteration, Transfer and Termination of the Agreement 

	
 

	
 

	
18.1

	
Any
alteration, revision and supplement to this Agreement shall be in writing and
the conditions for effectiveness shall the same as Clause 17. 

	
 

	
 

	
18.2

	
Both
Parties expressly agree that neither of them has the right to transfer all or
part of its rights and obligations under this Agreement to a third party
without prior written consent of the other Party. 

23

	
 

	
 

	
18.3

	
During
the term of this Agreement, both Parties agree to make relevant adjustments
and amendments to this Agreement in the event of any change of relevant state
laws, regulations, rules and policies. 

	
 

	
 

	
18.4

	
Termination
of Agreement 

	
 

	
 

	
 

	
In case
of occurrence of any of following events, the other Party has the right to
terminate this Agreement after sending a termination notice:

	
 

	
 

	
 

	
(1) a
Party becomes bankrupt or is the subject of proceedings for liquidation or
its business license or power business permit is revoked;

	
 

	
 

	
 

	
(2) a
Party is merged with another entity or transfers all or most of its assets to
another entity and the existing entity is unable to reasonably bear all of
its obligations under this Agreement;

	
 

	
 

	
19

	
Dispute Settlement 

	
 

	
 

	
19.1

	
Any
dispute arising out of or in relation to the performance of this Agreement
shall be first settled by both Parties through negotiation. It may be
submitted to the national electricity regulatory authority for mediation. If
it fails to be settled through negotiation and meditation, the Parties agree
to submit such dispute to Yunnan Kunming Arbitration Commission and apply for
arbitration in accordance with its arbitration rules. The arbitral award
shall be final and binding on the Parties. 

	
 

	
 

	
20

	
Applicable Law 

	
 

	
 

	
20.1

	
The
execution, effectiveness, construction, performance and dispute settlement in
respect of this Agreement shall be governed by PRC law. 

	
 

	
 

	
21

	
Miscellaneous 

	
 

	
 

	
21.1

	
Confidentiality

	
 

	
 

	
 

	
Both
Parties shall treat as confidential any materials and documents which are
acquired from the other Party and could not be obtained from public domain.
Without the consent of such other Party which provides such materials and
documents, the Party shall not divulge any or all of such materials and
documents to any third party, unless as otherwise required by the state.

	
 

	
 

	
21.2

	
Entire
Agreement 

	
 

	
 

	
 

	
This
Agreement constitutes the entire agreement between the Parties in respect of
the subject of this Agreement, and shall supersede any prior discussions,
negotiations, agreements and contracts between the Parties concerning this
Agreement.

	
 

	
 

	
21.3

	
Notice
and Delivery 

	
 

	
 

	
 

	
Any
notice and document in connection with this Agreement shall be in writing.
They shall be deemed as received when the receiver signs for confirmation if
they are sent by registered email, express mail or personal delivery. They
shall be deemed as received when they are sent and received by fax. All
notices and documents shall come into force when they have been delivered or
received. All notices shall be sent to the addresses provided below in this
Agreement, or to the revised address where one Party notify the other Party
of any change of its address in writing.

	
 

	
 

	
 

	
Party A: 

	
 

	
 

	
 

	
Attention:
Dispatching Centre of Yunnan Nujiang Grid Co., Ltd. 

	
 

	
 

	
 

	
Telephone:
0886-3630727 Fax: 0886-3630727 Postal Code: 673100 

24

	
 

	
 

	
 

	
Email: njdldd@126.com

	
 

	
 

	
 

	
Address:
No. 65 Xiang Yang Nan Road, Liuku Town, Lushui County, Nujiang Prefecture.

	
 

	
 

	
 

	
Party B:
Fugong County Hengda Hydroelectric Development Co., Ltd. 

	
 

	
 

	
 

	
Attention:
Fugong County Hengda Hydroelectric Development Co., Ltd. 

	
 

	
 

	
 

	
Telephone: 0886-3411757 Fax: 0886-3411757 Postal Code: 673400

	
 

	
 

	
 

	
Email:___________________________________________________

	
 

	
 

	
 

	
Address:___________________________________________________

	
 

	
 

	
21.4

	
No Waiver

	
 

	
 

	
 

	
Either
Party shall not be deemed as waive its rights if it has not represented in
writing to waive any its rights under this Agreement, The failure of either
Party to exercise any of its rights under this Agreement shall not be deemed
as the waiver of any of such rights or the future waiver of any of such
rights. 

	
 

	
 

	
21.5

	
Continue
to be Effective 

	
 

	
 

	
 

	
The
clauses related with the arbitration and confidentiality in this Agreement
shall survive the termination of this Agreement. 

	
 

	
 

	
21.6

	
Counterparts

	
 

	
 

	
 

	
This
Agreement shall be executed in 4 original copies, and each Party will hold 2
copies. 

 

25

	
 

	
 

	
 

	
Party A (Seal):

	
 

	
Party B (Seal):

	
 

	
 

	
 

	
Legal Representative: Yang Yong

	
 

	
Legal Representative:

	
 

	
 

	
 

	
or

	
 

	
Or

	
 

	
 

	
 

	
Authorized Representative:

	
 

	
Authorized Representative: Yu
Zuolin

	
 

	
 

	
 

	
Date of Signature: 14 May 2010

	
 

	
Date of Signature: 14 May 2010

26Contract Number: 2010A517 

Exhibit 4.105

Power Purchase And Sale Contract

Power Seller:

Sichuan Huabang Hydroelectric Development
Co., Ltd.

Power Purchaser:

Sichuan Cangxi Power Supply Co., ltd. 

Signing Place: Sichuan Cangxi Power Supply
Co., Ltd. 

Signing Date: May 17, 2010

Contract Number: 2010A517 

CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter I

 	
  

 	
 Definition and
 interpretation

 	
  

 	
 4

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter II

 	
  

 	
 Representation of
 both parties

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter III

 	
  

 	
 Obligations of
 both parties

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter IV

 	
  

 	
 Purchase and sale
 of the power

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter V

 	
  

 	
 On grid tariff

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter VI

 	
  

 	
 Power metering

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter VII

 	
  

 	
 Power output
 calculation

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter VIII

 	
  

 	
 Settlement and
 payment of electricity fees

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter IX

 	
  

 	
 Liability for
 breach of contract

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter X

 	
  

 	
 Effectiveness and
 term

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter XI

 	
  

 	
 Applicable law

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter XII

 	
  

 	
 Amendment,
 transfer and termination of this contract

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter XIII

 	
  

 	
 Dispute resolution

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Chapter XIV

 	
  

 	
 Miscellaneous

 	
  

 	
 14

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Appendix: Power
 Supply Circuit and Property Rights Demarcation Diagram

 	
  

 	
 17

 

2

Contract Number: 2010A517 

Power Purchase and Sale Contract

This Power Purchase and Sale Contract (the “Contract”) is entered into by and between
the two parties set forth below: 

Power Purchaser:     Sichuan Cangxi Power Supply Co., Ltd., a
power supply enterprise, registered with the Administration for Industry and
Commerce of Cangxi County. 

Tax Registration
Number:     510824206100402 

Legal
Address:     No.15 Renmin West Road, Lingjiang Town,
Cangxi County 

Person In Charge: Yan Hong 

Power
Seller:     Sichuan Huabang Hydroelectric Development
Co., Ltd., a power generation enterprise with the legal person status registered
with the Administration for Industry and Commerce of Sichuan Province. 

Tax registration
number:      510824660270321 

Legal
Address:          Huifeng
Garden, Binjiang Road, Cangxi County 

Legal
Representative:        John Kuhns. 

The information regarding the contact and
address and account opening bank provided by both Parties to this Contract are
as follows: 

	
  

 	
  

 	
  

 
	
 Name of the Power
 Purchaser:

 	
  

 	
 Sichuan Cangxi
 Power Supply Co., Ltd.

 
	
  

 	
  

 	
  

 
	
 Telephone Number:

 	
  

 	
 5222084

 
	
  

 	
  

 	
  

 
	
 Facsimile:

 	
  

 	
 5222084

 
	
  

 	
  

 	
  

 
	
 Zip Code:

 	
  

 	
 628400

 
	
  

 	
  

 	
  

 
	
 Mail Address:

 	
  

 	
 No.15 Renmin West
 Road, Lingjiang Town, Cangxi County

 
	
  

 	
  

 	
  

 
	
 Name for the
 Account Opening:

 	
  

 	
 Sichuan Cangxi
 Power Supply Co., Ltd.

 
	
  

 	
  

 	
  

 
	
 Account Opening
 Bank:

 	
  

 	
 Agricultural Bank
 of China, Cangxi County Renmin Zhonglu Sub-branch

 
	
  

 	
  

 	
  

 
	
 Account Number:

 	
  

 	
 286701040000315

 
	
  

 	
  

 	
  

 
	
 Name of the Power
 Seller:

 	
  

 	
 Sichuan Huabang
 Hydroelectric Development Co., Ltd.

 

3

	
  

 	
  

 	
  

 
	
 Telephone Number:

 	
  

 	
 5285468

 
	
  

 	
  

 	
  

 
	
 Facsimile:

 	
  

 	
 5285468

 
	
  

 	
  

 	
  

 
	
 Zip Code:

 	
  

 	
 628400

 
	
  

 	
  

 	
  

 
	
 Mail Address:

 	
  

 	
 Huifeng Garden,
 Binjiang Road, Cangxi County

 
	
  

 	
  

 	
  

 
	
 Name for the Account
 Opening:

 	
  

 	
 Sichuan Huabang
 Hydroelectric Development Co., Ltd.

 
	
  

 	
  

 	
  

 
	
 Account Opening
 Bank:

 	
  

 	
 Agricultural Bank
 of China, Cangxi Sub-branch

 
	
  

 	
  

 	
  

 
	
 Account Number:

 	
  

 	
 286101040003320

 

WHEREAS: 

	
  

 	
  

 
	
 (1)

 	
 The Power Seller owns, operates and manages the Cangxi Liyuantan
 Hydropower Station over the Donghe River, the branch river of Jialingjiang
 River, which is located at Renhe Village, Zhongtu Township, Cangxi County,
 Sichuan Province, with a total installed capacity of 12MW (the “Power Plant”); 

 
	
  

 	
  

 
	
 (2)

 	
 The Power Plant has been connected to the grid operated and managed
 by the Power Purchaser. 

 
	
  

 	
  

 
	
  

 	
 After friendly consultations and on the principles of equality,
 willingness and good faith, the Power Purchaser and the Power Seller have
 entered into this Contract in accordance with the Contract Law of the People’s Republic of
 China,
 the Power Law of the People’s Republic of
 China, the Administration
 Regulations on the Dispatching of Power Grid and other national
 laws and regulations. 

 
	
  

 	
  

 
	
 Chapter I Definition and interpretation

 
	
  

 	
  

 
	
 1.1

 	
 Unless otherwise required by the context, the terms used in this
 Contract shall have the meanings set forth as follows: 

 
	
  

 	
  

 
	
 1.1.1

 	
  “Power Plant” refers to the power generation
 facilities and all its auxiliary facilities extending to the property
 demarcation point over the Donghe River, the branch river of Jialingjiang
 River, which is owned and operated and managed by the Power Seller and
 located in Renhe Village, Zhongtu Township, Cangxi County, Sichuan Province,
 with a total installed capacity of 12 MW (six generator units, respectively
 referring to No.1, No.2, No.3, No.4, No.5 and No.6, each with the capacity of
 2 MW). 

 
	
  

 	
  

 
	
 1.1.2

 	
  “Actual Annual Grid-connected Power Output” refers to the annual power output
 transmitted to the Power Purchaser by the Power Seller at the Metering Point,
 and the metering unit for the power output shall be kwh. 

 
	
  

 	
  

 
	
 1.1.3

 	
  “The Power Purchaser’s Reason” refers to the requirement and
 liability of the Power Purchaser, including the liability for the enlargement
 of the accidents, which shall be assumed 

 

4

	
  

 	
  

 
	
  

 	
 by the Power Purchaser, due to the non-implementation of the relevant
 national regulations and standards and etc.
 by the Power Purchaser. 

 
	
  

 	
  

 
	
 1.1.4

 	
  “The Power Seller’s Reason” refers to the requirement and
 liability of the Power Seller, including the liability for the enlargement of
 the accidents, which shall be undertaken by the Power Seller, due to the
 non-implementation of the relevant national regulations and standards and etc. by the Power Seller. 

 
	
  

 	
  

 
	
 1.1.5

 	
  “Grid-connection Point” refers to the electric connection
 point connecting the Power Plant owned and operated by the Power Seller and
 the grid managed by the Power Purchaser. 

 
	
  

 	
  

 
	
 1.1.6

 	
  “Metering Point” refers to the point indicated in
 Appendix II, which is for the installation of the power output metering
 devices. Generally, the Metering Point is installed on the property
 demarcation point of the Power Purchaser and Power Seller; in the event that
 the power output metering devices could not be installed on the property
 demarcation point, the installation location shall be selected through
 consultations between the Power Purchaser and Power Seller. 

 
	
  

 	
  

 
	
 1.1.7

 	
  “Emergency” refers to the accidents occurred
 to the grid or material accidents to the power generation and supply
 facilities, such as frequency or voltage of grid over the regulated scope,
 the loading of the transmission and transformation equipment over the
 regulated value, the power of the main line over the regulated stability limitation
 and other operation conditions that could threaten the safety and stability
 of the grid operation, lead to a break-down of the grid and a large area
 power-cut, etc. 

 
	
  

 	
  

 
	
 1.1.8

 	
  “Force Majeure” refers to any objective
 circumstance which cannot be foreseen, avoided and overcome, including
 volcano eruption, tornado, snowstorm, mudslide, landslide, flood, fire, the
 input water volume below the designed standard, and earthquake, typhoon,
 thunder and lightening, fog flash, icing flashover and ice coating, etc., which exceed the designed
 standards, and nuclear radiation, war, plague, riot, etc. 

 
	
  

 	
  

 
	
 1.2

 	
 Interpretation 

 
	
  

 	
  

 
	
 1.2.1

 	
 The Appendices hereto shall have the same legal effect as the text of
 this Contract. 

 
	
  

 	
  

 
	
 1.2.2

 	
 This Contract shall be binding on the legal successor or assignee of
 any Party to this Contact, unless otherwise agreed by the Power Purchaser and
 Power Seller. In case of the occurrence of the circumstance provided in this
 Article, relevant obligator shall fulfill the requisite notification
 obligation and complete procedures required by laws and regulations. 

 
	
  

 	
  

 
	
 1.2.3

 	
 References to “Date”, “Month” and “Year”, unless otherwise required
 by the context, shall be considered as the Date, Month and Year in Gregorian
 calendar. 

 
	
  

 	
  

 
	
 1.2.4

 	
 References to “include (including)” shall mean “include without
 limitation”. 

 

5

	
  

 	
  

 
	
 Chapter II Representations of both
 parties

 
	
  

 	
  

 
	
  

 	
 Any Party to this Contract hereby represents to the other Party that:
 

 
	
  

 	
  

 
	
 2.1

 	
 It is an enterprise duly established and validly existing, and has
 the full right to execute and the ability to perform this Contract. 

 
	
  

 	
  

 
	
 2.2

 	
 It has legally and effectively completed all requisite procedures for
 the execution and performance of this Contact (including the procurement of
 requisite governmental approvals, business license and power business
 operation permit, and etc.). 

 
	
  

 	
  

 
	
 2.3

 	
 Upon the execution of this Contract, no judgment, award, ruling or
 specific administrative act has been produced by any court, arbitration
 institute, administrative authority or regulatory authority that is
 sufficient to have any material adverse effect on the performance of this
 Contract by any Party. 

 
	
  

 	
  

 
	
 2.4

 	
 It has taken all necessary corporate action to authorize the
 execution of this Contract, and the signing person for this Contact shall be
 its legal representative or authorized representative. This Contract shall be
 binding on it upon it comes into effect. 

 
	
  

 	
  

 
	
 Chapter III Obligations of both parties

 
	
  

 	
  

 
	
 3.1

 	
 The obligations of the Power Purchaser shall include: 

 
	
  

 	
  

 
	
 3.1.1

 	
 To purchase the power energy from the Power Seller in accordance with
 the provisions set forth in this Contract. 

 
	
  

 	
  

 
	
 3.1.2

 	
 To abide by the grid-connection and dispatching agreement entered
 into by and between the Power Purchaser and the Power Seller, to operate and
 maintain the relevant transformation and transmission facilities in
 accordance with the national and industry standards, and to ensure a safe,
 high quality and economic operation of the power system. 

 
	
  

 	
  

 
	
 3.1.3

 	
 To carry out the power dispatching and information disclosure on the
 principle of publicity, justice and fairness in accordance with the relevant
 national regulations, and to provide the information regarding the
 electricity load, reserve capacity, the operation status of the
 transformation and transmission facilities and etc. for the implementation of
 this Contract. 

 
	
  

 	
  

 
	
 3.1.4

 	
 To supply the Power Seller with the power needed for the restart of
 the power generator units in accordance with relevant national regulations or
 agreements entered into by and between the Power Seller and the Power
 Purchaser. 

 
	
  

 	
  

 
	
 3.2

 	
 The obligations of the Power Seller shall include: 

 
	
  

 	
  

 
	
 3.2.1

 	
 To supply the Power Purchaser with the power energy in compliance
 with the national and industry standards according to the provisions hereof. 

 
	
  

 	
  

 
	
 3.2.2

 	
 To abide by the grid-connection and dispatching agreement entered
 into by and between the Power Purchaser and the Power Seller, and the unified
 power dispatching, to operate and 

 

6

	
  

 	
  

 
	
  

 	
 maintain the Power Plant in accordance with the national and industry
 standards, and dispatching rules and regulations to ensure the safe operation
 of the power generator units, reach the requirements of the technical
 standards and regulations issued by the relevant departments of the State and
 maintain the safe, high quality and economy operation of the power system. 

 
	
  

 	
  

 
	
 3.2.3

 	
 Not to supply the power to the end user directly or sell the power to
 other grids without the approval from the Power Purchaser. 

 
	
  

 	
  

 
	
 Chapter IV Purchase and sale of the
 power

 
	
  

 	
  

 
	
 4.1

 	
 The daily on-grid loading curve shall be released by Cangxi Power
 Dispatching Center in light of the system loading condition. The power
 station owned by the Power Seller shall be operated in strict accordance with
 the released active loading voltage curve. 

 
	
  

 	
  

 
	
 4.2

 	
 The on-grid power output of the Power Seller shall be checked by the
 Power Purchaser each day, and the electricity fees shall be settled by the
 power sales department on a monthly basis. 

 
	
  

 	
  

 
	
 4.3

 	
 The on-grid power output supplied by the Power Seller, which is not
 in compliance with the relevant provisions stipulated in this Contract and
 the Grid-connection and Dispatching Agreement attached as the Appendix to
 this Contract, shall be considered as the un-qualified power output. 

 
	
  

 	
  

 
	
 4.4

 	
 Allowance of the Deviation for the Actual Generated Power 

 
	
  

 	
  

 
	
  

 	
 During any period of time, the allowed deviation range between the
 actual generated power of the Power Plant and the power determined according
 to the planned daily power generation dispatching curve (including the
 temporarily adjusted curve) released by the power dispatching agency shall be
 from -2% to 2%. 

 
	
  

 	
  

 
	
 Chapter V On-grid tariff

 
	
  

 	
  

 
	
 5.1

 	
 On-grid Tariff during the Business Operation Period 

 
	
  

 	
  

 
	
 5.1.1

 	
 The on-grid tariff during the business operation period of the power
 generator units of the Power Plant owned by the Power Seller shall be
 measured and calculated by the Power Seller in accordance with the relevant
 national regulations, and carried out after the procurement of the approvals
 of the competent governmental authority in charge of the examination and
 approval of tariff. 

 

7

	
  

 	
  

 	
  

 
	
 Chapter VI Power metering

 
	
  

 	
  

 	
  

 
	
 6.1

 	
 Grid-connection Point 

 
	
  

 	
  

 	
  

 
	
  

 	
 The Grid-connection Point between the Power Seller, namely, Sichuan
 Huabang Hydroelectric Development Co., Ltd., and the Power Purchaser is
 located at the T connection point of 544 Lingjiao Line of 110KV Lingjiang
 Substation. 

 
	
  

 	
  

 	
  

 
	
  

 	
 The temporary property demarcation point is located at the T connection
 point of 544 Lingjiao Line of 110KV Lingjiang Substation, the maintenance
 work of which shall be undertaken by the Power Seller and Power Purchaser in
 accordance with the temporary property demarcation point. The ownership of
 the equipments installed across the property demarcation point by the Power
 Seller or the Power Purchaser shall belong to the Party who installs
 equipments. 

 
	
  

 	
  

 	
  

 
	
 6.2

 	
 Metering Point 

 
	
  

 	
  

 	
  

 
	
  

 	
 The Metering Point for the metering of the on-grid power output of
 the Power Seller and power output supplied by the Power Purchaser to the
 Power Seller shall be located at the following points (please refer to the
 Appendix hereto for detailed information): 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 The Metering Point for the on-grid power output of the Power Seller,
 namely, Sichuan Huabang Hydroelectric Development Co., Ltd., will be
 installed at the T connection point of the 544 Lingjiao Line of 110KV
 Lingjiang Substation of the Power Purchaser; in addition, two sets of
 metering devices with the no-load voltage ratio of the potential transformer
 being 110/0.1 and no-load voltage ratio of the current transformer being
 150/5 and 75/5 respectively, will be installed at the above-mentioned points.
 

 
	
  

 	
  

 	
  

 
	
 6.3

 	
 Power output metering devices and relevant facilities 

 
	
  

 	
  

 	
  

 
	
 6.3.1

 	
 The Power output metering devices shall include kilowatt-hour meter,
 potential transformer for metering usage, current transformer and secondary
 circuit, and power energy metering box/tank, etc. 

 
	
  

 	
  

 	
  

 
	
 6.3.2

 	
 Power output metering devices shall be allocated in accordance with
 the Technical Administrative Code of Electric Energy Metering (DL/T
 448-2000). Neither auxiliary connection point for disconnecting switch nor
 voltage compensation appliance in any form shall be installed or connected in
 the secondary circuit of potential transformer. 

 
	
  

 	
  

 	
  

 
	
 6.3.3

 	
 Static multifunctional kilowatt-hour meter, the technical performance
 of which is in compliance with the requirement of the Alternating Current
 Static Watt-hour Meters for Active Energy(Class 0.2S and 0.5S) (GB/T 17883-1999)
 and the Multifunctional Electricity Meters (DL/T 614-1997), will be adopted.
 The kilowatt-hour meter shall have the function of voltage and current
 recording and storage, shall be equipped with standard communication
 interface, and available for the data local communication and remote
 transmission (or through the power energy remote terminal). 

 

8

	
  

 	
  

 
	
  

 	
 The technical performance and management status of the electricity
 power metering devices, which has already been adopted and used, shall be
 recognized technically by the electricity energy metering inspection and
 testing agency recognized by the State metering administration authority and
 confirmed by the Power Seller and the Power Purchaser. As for those aspects
 which fail to satisfy the requirements, both Parties shall reach an agreement
 through consultation to provide the time limit for accomplishing the
 transformation. 

 
	
  

 	
  

 
	
 6.3.4

 	
 Electricity energy meter, capable of metering the on-grid power
 output and the power output supplied by the Power Purchaser to the Power
 Seller respectively, which shall fulfill the requirements of Article 6.3.3
 hereof, shall be installed at the Metering Point metering both the on-grid
 power output and power output supplied by the Power Purchaser to the Power Seller.
 

 
	
  

 	
  

 
	
 6.3.5

 	
 Electricity energy metering devices shall be inspected and affixed
 with a seal or seal stamp or other seal measures by the electricity energy
 metering inspection and testing agency recognized by the State metering
 administration authority and confirmed by the Power Seller and the Power
 Purchaser. Neither Party shall unseal, alter the electricity energy metering
 devices and its interconnected lines or replace the components of the
 metering devices without consent of the other Party. In case of any technical
 transformation required by any Party to this Contract, the transformation
 plan shall only be implemented upon the consent from the counterparty and
 with the presence of both Parties to this Contract; and the transformation
 project shall not be put into usage until the completion acceptance has been
 completed. 

 
	
  

 	
  

 
	
 6.4

 	
 The Power Seller shall be responsible for the purchase, installation,
 commissioning, daily management and maintenance of the electric energy
 metering devices. 

 
	
  

 	
  

 
	
 6.5

 	
 The verification and check of the electric energy metering devices 

 
	
  

 	
  

 
	
 6.5.1

 	
 The defect investigation and periodic verification and check of the
 electric energy metering devices shall be implemented by the electric energy
 metering inspection and testing agency recognized by the State metering
 administration authority and confirmed by the Power Seller and the Power
 Purchaser, with the presence of both the Power Purchaser and Power Seller; in
 addition, any costs and expenditures incurred shall be borne by the owner of
 the electric energy metering devices. 

 
	
  

 	
  

 
	
 6.5.2

 	
 Any Party to this Contract is entitled to require the verification
 and check, or testing of the electric energy metering devices other than the
 periodic verification and check at any time, which shall be implemented by
 the electric energy metering inspection and testing agency recognized by the
 State metering administration authority and confirmed by the Power Seller and
 the Power Purchaser. In the event that, after the verification and check, or
 testing, the deviation is considered to be out of the regulated range, the
 costs and expenditures incurred shall be borne by the owner of such
 electricity energy metering devices; in the event that the deviation is
 considered to be within the regulated range, the costs and expenditure
 incurred shall be borne by the Party requiring such verification and check. 

 
	
  

 	
  

 
	
 6.6

 	
 Resolution for metering abnormality 

 

9

	
  

 	
  

 
	
  

 	
 In the event that any party to this Contract notices the abnormality
 or fault of the electric energy metering devices, which affect the metering
 of the power output, it shall immediately notify the other Party and the
 electric energy metering inspection and testing agency confirmed by the Power
 Seller and the Power Purchaser in order to jointly investigate the defect and
 make such electric energy metering devices restore its normal operation as
 soon as possible. 

 
	
  

 	
  

 
	
  

 	
 Under normal conditions, the settlement for the power output will
 mainly rely on the data of master meter located on the trade settlement
 point; in case of abnormal conditions, on the basis of adequate consultation
 between both Parties, the power output during the period of abnormal
 conditions shall be determined in light of the information indicated by the
 voltage and current data in storage. 

 
	
  

 	
  

 
	
 Chapter VII Power output calculation

 
	
  

 	
  

 
	
 7.1

 	
 The on-grid power output and the power output supplied by the Power
 Purchaser to the Power Seller shall be settled on a monthly basis in order to
 realize the goal of accounting by day, settlement by month and clearance at
 the end of the year. The power output shall be calculated in accordance with
 the power output recorded at 8:00 on the 21st day of each month
 which has already been confirmed by both Parties. 

 
	
  

 	
  

 
	
 7.2

 	
 Reading and Recording of the Data for Power Output Settlement 

 
	
  

 	
  

 
	
 7.2.1

 	
 Under normal conditions, the accounts shall be settled in accordance
 with the power output data recorded by the meter located on the Metering
 Point by the Parties to this Contract. 

 
	
  

 	
  

 
	
 7.3

 	
 Power Output Calculation 

 
	
  

 	
  

 
	
 7.3.1

 	
 On-grid Power Output 

 
	
  

 	
  

 
	
  

 	
 On-grid power output shall be the accumulated amount of the total
 power output (reverse Lingjiang Line +forward Chengjiao Line—forward Lingjiang Line) copied
 from the Metering Point in accordance with Article 6.2 herein, which has been
 supplied by the power generator units of the Power Plant to the Power
 Purchaser. 

 
	
  

 	
  

 
	
  

 	
 Any wear and tear of the interconnecting transformer of the Power
 Plant due to the penetration power of the Power Purchaser shall be borne by
 the Power Purchaser. 

 
	
  

 	
  

 
	
 7.3.2

 	
 Power Output Supplied by the Power Purchaser to the Power Seller 

 
	
  

 	
  

 
	
  

 	
 Power output supplied by the Power Purchaser to the Power Seller
 means the power output supplied by the Power Purchaser to the Power Seller
 during the startup and testing period of the Power Plant or the complete
 outage of the power generator units due to the Power Seller’s reasons, which
 shall be the accumulated account of the reverse power output through the 35KV
 Line of Set-up Substation of Liyuantan Station. 

 

10

	
  

 	
  

 
	
 7.4

 	
 The on-grid power output and power output supplied by the Power
 Purchaser to the Power Seller shall be respectively settled in light of their
 corresponding power tariff, which shall not be offset. 

 
	
  

 	
  

 
	
 Chapter VIII Settlement and payment of
 electricity fees

 
	
  

 	
  

 
	
 8.1

 	
 Calculation of Electricity Fees 

 
	
  

 	
  

 
	
 8.1.1

 	
 The electricity fees shall be settled in Renminbi. 

 
	
  

 	
  

 
	
 8.1.2

 	
 The electricity fees for the on-grid power output shall be calculated
 according to the formula set forth below: 

 
	
  

 	
  

 
	
  

 	
 Electricity fees = Accumulated Purchased Power Output×the
 Corresponding On-grid Tariff (including tax) 

 
	
  

 	
  

 
	
 8.2

 	
 Settlement of Electricity Fees 

 
	
  

 	
  

 
	
 8.2.1

 	
 After the meter reading carried out by the Parties to this Contract
 in accordance with Article 7.2 hereof, the grid dispatching department shall
 provide the daily check report to the power marketing department for further
 check, accurately calculate the on-grid power output and electricity fees
 according to the check result, fill out the Power Output Settlement Statement
 and Electricity Fees Settlement Statement and settle the electricity fees. 

 
	
  

 	
  

 
	
 8.3

 	
 The Payment of the Electricity Fees for the Power Output Supplied by
 the Power Purchaser to the Power Seller 

 
	
  

 	
  

 
	
  

 	
 Before the promulgation of relevant national regulations, the
 electricity fees for the power output supplied by the Power Purchaser to the
 Power Plant which is calculated in light of Article 7.3.2 hereof, shall be
 calculated in accordance with the average power sale tariff of the grid
 enterprise, the payment of which shall be made by the Power Plant within the
 subsequent month. 

 
	
  

 	
  

 
	
 8.4

 	
 Form of Payment 

 
	
  

 	
  

 
	
  

 	
 Any amount payable by any Party to this Contract (“Paying Party”) to the other Party to this
 Contract (“Receiving Party”) in
 accordance with this Contract shall be directly remitted to the bank account
 of the Receiving Party as provided in this Contract. In case of any receipt
 of the written notice for the alteration of account opening bank or the bank
 account of the Receiving Party, the Paying Party shall remit the amount
 payable to the altered bank account. 

 
	
  

 	
  

 
	
  

 	
 The bank account indicated in the Special Invoice for Value-added Tax
 issued by the Receiving Party shall be the same as the bank account provided
 in this Contract or the altered account by written notice. 

 

11

	
  

 	
  

 
	
 8.5

 	
 Materials and Records 

 
	
  

 	
  

 
	
  

 	
 The Parties to this Contract agree to keep the original materials and
 records respectively so as to facilitate the reasonable checking of the
 statements and records or the examination of the accuracy of calculations in
 accordance with this Contract. 

 
	
  

 	
  

 
	
 Chapter IX Liability for breach of
 contract

 
	
  

 	
  

 
	
 9.1

 	
 Any breach of the terms and conditions of this Contract shall be
 considered as the breach of this Contract, the non-defaulting party shall be
 entitled to require the defaulting party to compensate its economic losses
 arising from the breach of contract. 

 
	
  

 	
  

 
	
 9.2

 	
 Besides the provisions stipulated in other chapters hereof, the
 liabilities for beach of contract which shall be assumed by the Power Purchaser
 shall also include: 

 
	
  

 	
  

 
	
 9.3

 	
 The loss of the power generator units or equipments of the Power
 Plant owned by the Power Seller due to the Power Purchaser’s Reason shall be
 borne by the Power Purchaser. 

 
	
  

 	
  

 
	
 9.4

 	
 Besides the provisions stipulated in other chapters hereof, the
 liabilities for breach of contract which shall be borne by the Power Seller
 shall also include: 

 
	
  

 	
  

 
	
 9.5

 	
 The loss incurred by the Power Purchaser, the customer of the power
 supplied by the Power Purchaser or other persons due to the reasons of the
 power generator units, other equipments or facilities of the Power Plant
 owned by the Power Seller, shall be borne by the Power Seller. 

 
	
  

 	
  

 
	
 9.6

 	
 In the event that the Power Seller supplies its generated power
 directly to the customers, which breaches the regulations of Article 3.2.3
 hereof, such power supply shall be considered as the breach of contract. In
 the event that the Power Seller takes the power for the office usage outside
 the plant area, employee life and other non-power-generation business, etc. without any consent as the power
 used for the power generation operation, this kind of action, which shall be
 deemed as the breach of contract, shall be rectified immediately; the
 electricity fees for the power supply produced before the completion of the
 rectification work shall be calculated on the basis of the nature of the
 power customers confirmed in accordance with the Regulation on Supply and Utilization of Electricity and
 the corresponding power tariff, which shall be deducted from the electricity
 fees payable by the Power Purchaser to the Power Seller; in addition, the
 on-grid plan of the peak time contract for the period, during which the
 generated power is directly supplied to the customers by the Power Seller,
 shall be deducted by the equivalent power output. In the event that the Power
 Seller fails to correct its breach and continues its defaults, the Power
 Purchaser shall resend to the Power Seller the notice concerning the
 rectification within the prescribed time as the warning; and if the Power
 Seller still fails to rectify its breach, the Power Purchaser is entitled to
 disconnect the Power Seller from its grid, all the consequences and losses of
 which shall be borne by the Power Seller. In addition, the Power Purchaser is
 entitled to refuse the payment of the on-grid electricity fees to the Power
 Seller before the completion of the compensation of the losses caused by the
 Power Seller. 

 

12

	
  

 	
  

 
	
 9.7

 	
 The change of the electric lines connection, the movement, alteration
 and operation of the purchase and sale metering devices, grid-connection
 equipments and other equipments, which has been agreed to be dispatched, used
 and managed by the Power Seller or the Power Purchaser, shall be deemed as
 the material breach of contract; in case of any over calculation caused by
 the aforesaid breaches, besides the return of the balance of the electricity
 fees, the liquidated damages in the amount equivalent to three (3) times of
 such balance shall be paid by the Power Seller. In the event that the
 defaulting period could not be identified, 180 days shall be considered as
 the basis for the calculation of the balance of the power output and
 electricity fees. In case of any other loss incurred by the Power Purchaser,
 such loss shall be borne by the Power Seller. 

 
	
  

 	
  

 
	
 9.8

 	
 In the event of a breach committed by any Party to this Contract, the
 non-defaulting Party may notify the defaulting Party to cease the breach and
 serve a written notice regarding the breach correction and payment of
 liquidated damages set out in this Contract as soon as possible to the
 defaulting Party. The defaulting Party shall take measures to correct its
 breach immediately, confirm the breach in accordance with this Contract and
 make payment of the liquidated damages or compensate the non-defaulting
 Party. 

 
	
  

 	
  

 
	
 9.9

 	
 Before the expiration date stipulated in this Contract, in case of
 any express representation or implication indicated through actions taken by
 any Party to this Contract for the non-performance of this Contract, the
 other Party to this Contract is entitled to require such Party to assume
 relevant liabilities for breach of contract. 

 
	
  

 	
  

 
	
 Chapter X Effectiveness and term

 
	
  

 	
  

 
	
 10.1

 	
 This Contract, which is deemed as the main contract between the Power
 Purchaser and the Power Seller with the Grid Connection and Dispatching
 Agreement as the collateral contract, shall be deemed to be concluded upon
 the signing of the legal representatives or authorized representative and
 being affixed with their respective official stamps of the Parties to this
 Contract, and become effective upon the date of effectiveness stipulated in
 this Contract. 

 
	
  

 	
  

 
	
 10.2

 	
 The valid term of this Contract shall be from May 17, 2010 to May 17,
 2011. Upon the expiration date of this Contract, this Contract may be
 performed continuously and effectively provided that there is no objection
 from the Parties to this Contract. 

 
	
  

 	
  

 
	
 10.3

 	
 Within one (1) month before the expiration of this Contract, the
 Parties to this Contract shall consult with each other in relation to the
 extension of this Contract. 

 
	
  

 	
  

 
	
 Chapter XI Applicable law

 
	
  

 	
  

 
	
 11.1

 	
 The formation, validity, interpretation, performance and dispute
 resolution of this Contract shall be governed by the laws of PRC. 

 
	
  

 	
  

 
	
 Chapter XII Amendment, transfer and termination
 of this contract

 
	
  

 	
  

 
	
 12.1

 	
 Any modification, amendment or supplement to this Contract shall be
 conducted in written form. 

 

13

	
  

 	
  

 	
  

 
	
 12.2

 	
 The Power Purchaser and Power Seller expressly represent that,
 without the written consent from the other Party, neither of them has the
 right to transfer or assign all or part of its rights or obligation as
 stipulated in this Contract to any third party. 

 
	
  

 	
  

 	
  

 
	
 12.3

 	
 During the valid term of this Contract, the Parties to this Contract
 agree to adjust and amend this Contract accordingly if any of the following
 events occurs: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Any changes to the relevant national laws, regulations, rules and
 polices; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The promulgation and implementation of relevant rules, measures and
 regulations, etc. by the State
 power regulatory authority. 

 
	
  

 	
  

 	
  

 
	
 12.4

 	
 Termination of this Contract 

 
	
  

 	
  

 	
  

 
	
  

 	
 If any of the following events occurs to any Party to this Contract,
 the other Party is entitled to terminate this Contract thirty (30) days after
 the service of the termination notice: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 If any Party to this Contract goes bankrupt or liquidated, or the
 business license or the power business permit of any Party to this Contract
 or the Power Plant is revoked; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 If any Party to this Contract is merged with the other Party, or all
 or majority of the assets of any Party to this Contract are transferred to
 another entity, which cannot assume all obligations of the transferring Party
 stipulated in this Contract; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 If the Grid Connection and Dispatching Agreement entered into between
 and by the Parties to this Contract is terminated. 

 
	
  

 	
  

 	
  

 
	
 Chapter XIII Dispute resolution

 
	
  

 	
  

 	
  

 
	
 13.1

 	
 All disputes arising from the performance of this Contact and in
 connection with this Contract may be resolved through friendly consultation
 or mediation by the power regulatory authority. In the event that no
 settlement can be reached through friendly consultation or mediation, any
 Party to this Contract may submit the dispute to the people’s court. 

 
	
  

 	
  

 	
  

 
	
 Chapter XIV Miscellaneous

 
	
  

 	
  

 	
  

 
	
 14.1

 	
 Appendix to this Contract 

 
	
  

 	
  

 	
  

 
	
  

 	
 Appendix II: Diagram for the Main Wiring and Metering Points of the
 Power Plant 

 
	
  

 	
  

 	
  

 
	
  

 	
 The Appendix to this Contract shall constitute the integral part of
 this Contract, which has the same effect as this Contract. 

 
	
  

 	
  

 	
  

 
	
 14.2

 	
 Text 

 
	
  

 	
  

 	
  

 
	
  

 	
 The Contract comprises nine (9) pages, and is executed in four (4)
 counterparts, and each Party to this Contract holds two (2) counterparts. 

 

14

	
  

 	
  

 
	
 14.3

 	
 The Power Purchaser and the Power Seller have reached the understanding
 for Article 8.2 hereof as below: 

 
	
  

 	
  

 
	
  

 	
 Considering the irregular market and economy order in the current
 period, the Power Seller understands and agrees that the electricity fees
 provided in this Contract shall be paid by the Power Purchaser in accordance
 with the ratio equivalent to the recovery rate of the electricity fees for
 the sold power of the Power Purchaser. 

 

15

          The
Seller: Sichuan Huabang Hydroelectric Development Co., Ltd.

                    (stamp)

          Legal
Representative (or Authorized Representative): 

          Contact
Person: 

          Signing
Date: May 17, 2010 

          Signing
Place: 

          The
Power Purchaser: Sichuan Cangxi Power Supply Co., Ltd.

                    (seal)

          Legal
Representative (or Authorized Representative): 

          Contact
Person: 

          Signing
Date: May 17, 2010 

          Signing
Place: 

16

Appendix: Power Supply Circuit and Property Rights
Demarcation Diagram 

17

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