Document:

Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

Exhibit 4.128

Fixed Assets Loan Contract

No.: FJ001622011005

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

Business license No.: 530000400004927

Legal representative/ person in charge: JOHN
DOUGLAS KUHNS

Domicile: Lawu Village Shangpa Town Fugong
County Nujiang Prefecture Post Code: 673400

Account bank and account No.: Bank of
China Fujian Branch 800112475408093001

Tel:
____________          Fax:
_____________

Lender: Bank of China Limited Fujian
Branch

Legal representative/ person in charge: Tao
Yiping     Post Code: 350003

Domicile: Bank of China Mansion, No.136
Wusi Road, Fuzhou City

Tel: 0591-87090999         Fax:
0591-87848584

Through consultations on an equal basis, the
Borrower and the Lender agree on the provision of fixed assets loan by the
Lender to the Borrower, and hereby enter into this Contract. 

	
  

 	
  

 	
  

 
	
 1

 	
 Amount of the loan

 
	
  

 	
  

 
	
  

 	
 Currency of the
 loan: RMB.

 
	
  

 	
  

 
	
  

 	
 Amount of the
 loan: (in words) One hundred and sixty-eight million eight hundred
 thousand;

 
	
  

 	
  

 
	
  

 	
  

 	
 (in numbers) 168,800,000.00

 
	
  

 	
  

 
	
 2

 	
 Term of the loan

 
	
  

 	
  

 
	
  

 	
 Term of the loan: 204 months, from the date of actual
 utilization; or in case of installments, from the date of the first actual
 utilization.

 
	
  

 	
  

 
	
  

 	
 The Borrower shall draw the facility strictly in accordance with the
 agreed schedule of utilization. Where the date of actual utilization is later
 than the agreed date of utilization, the Borrower shall still repay in
 accordance with the schedule of repayment agreed in this Contract.

 
	
  

 	
  

 
	
 3

 	
 Purpose

 
	
  

 	
  

 
	
  

 	
 Purpose: to finance the construction of Alu River Hydroelectric
 Power Station and Zileng River Hydroelectric Power Station (including
 replacement of the existing loan and relevant borrowing in Agricultural Bank
 of China).

 
	
  

 	
  

 
	
  

 	
 The Borrower shall not change the purpose without the written consent
 of the Lender, including but not limited to that the Borrower shall not use
 the loan to invest in the stocks and other securities, and to finance the
 projects of which the entry is forbidden by the laws, regulations, 

 

1

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
  

 	
 regulatory rules and national policies or the projects
 without due permission and the projects and purposes which cannot be financed
 by the facility from a bank.

 
	
  

 	
  

 
	
   4

 	
 Interest rate and
 calculation of the interest

 
	
  

 	
  

 
	
 4.1

 	
 Interest rate

 
	
  

 	
  

 
	
  

 	
 Interest rate on the RMB borrowings

 
	
  

 	
  

 
	
  

 	
 The interest rate shall be (2) of the following:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Fixed interest rate, /‰ The interest rate will not
 change in the term of the loan.

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Floating interest rate, with the floating period of 12 months:
 

 
	
  

 	
  

 	
  

 
	
  

 	
 The interest rate shall be readjusted for every 12 months from
 the date of actual utilization (in case of installments, from the date of the
 first actual utilization). The readjustment date shall be the date in the
 readjustment month corresponding to the date of actual utilization. If there
 is no date in the readjustment month corresponding to the date of actual utilization,
 the readjustment date shall be the last day in the readjustment month.

 
	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 The interest rate on the borrowings in the first floating period
 shall be the five-year benchmark interest rate of loan issued by the
 People’s Bank of China on the date of actual utilization.

 
	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Upon expiration of each floating period, the benchmark interest rate
 of the loan with the same term issued by the People’s Bank of China on the
 readjustment date shall be the interest rate applicable to the next floating
 period.

 
	
  

 	
  

 	
  

 
	
 4.2

 	
 Calculation of the interest

 
	
  

 	
  

 
	
  

 	
 The interests shall be calculated from the date of actual utilization
 by the Borrower and based on the actually drawn amount and the days of using
 such amount.

 
	
  

 	
  

 
	
  

 	
 Interest calculating formula: Interests = Principal × Days of actual
 using × Daily interest rate.

 
	
  

 	
  

 
	
  

 	
 The daily interest rate shall be calculated on 360 days each year.
 The calculating formula: Daily interest rate = Annual interest rate/360.

 
	
  

 	
  

 
	
 4.3

 	
 Interest settlement method

 
	
  

 	
  

 
	
  

 	
 The Borrower shall settle the interest according to (1) of the
 following: 

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 The interests shall be settled on a quarterly basis. The 20th day of
 the last month in each quarter shall be the date of interest settlement, and
 the 21st thereof shall be the date of interest payment.

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The interests shall be settled on a monthly basis. The 20th day of
 each month shall be the date of interest settlement, and the 21st thereof
 shall be the date of interest payment.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 If the repayment date of the last installment of the loan principal
 is not a date of interest payment, then such repayment date shall be deemed
 as the date of interest payment, and the Borrower shall pay off all interests
 accrued as of such date.

 
	
  

 	
  

 	
  

 
	
 4.4

 	
 Penalty interest

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 If the loan is overdue or fails to be used for the agreed purpose,
 the part which is overdue or misappropriated shall be charged interests at
 the penalty interest rate

 

2

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 agreed in this Contract, from the overdue date or the date of failure
 to use the loan for the agreed purpose until the principal and interests
 thereon are paid off.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The loan which is both overdue and misappropriated shall be charged
 interests at higher penalty interest rate. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 If the Borrower fails to pay duly any interests and the penalty
 interests, the compound interests thereon shall, pursuant to the method of
 interest settlement set out in Clause 4.3 hereof, be charged at the penalty
 interest rate agreed in Clause 4.3 hereof on such interests and penalty
 interests.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Penalty interest rate

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The penalty interest rate of the loan with floating interest rate

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The penalty interest rate of the loan with floating interest rate
 shall be floating pursuant to the floating period and method agreed in Clause
 4.1 hereof. The penalty interest rate of the overdue loan shall be such
 floating interest rate plus 30%, and penalty interest rate of the
 misappropriated loan shall be such floating interest rate plus 50%.

 
	
  

 	
  

 	
  

 
	
   5

 	
 Conditions for
 Utilization

 
	
  

 	
  

 
	
  

 	
 The Borrower can only utilize upon satisfaction of the following
 conditions: 

 
	
  

 	
  

 
	
 5.1

 	
 This Contract and its Appendixes have become effective;

 
	
  

 	
  

 
	
 5.2

 	
 The Borrower has retained with the Lender the Borrower’s documents,
 bills, specimen signatures, list of personnel and signature sample relating
 to execution and performance of this Contract and properly filled in the
 relevant certificates;

 
	
  

 	
  

 
	
 5.3

 	
 The Borrower has opened the account necessary for performance of this
 Contract as required by the Lender;

 
	
  

 	
  

 
	
 5.4

 	
 The Borrower shall, 2 banking days prior to utilization,
 submit to the Lender a written application for utilization and the evidential
 documents for the purpose, and handle the relevant procedures for
 utilization;

 
	
  

 	
  

 
	
  

 	
 The evidential documents required to be submitted by the Borrower
 include: The facility agreement and external borrowing materials of the
 Borrower in Agricultural Bank of China;

 
	
  

 	
  

 
	
  

 	
 The above evidential documents need meet the following requirements: All
 the above borrowings have been used for the construction of the power station
 of the company.

 
	
  

 	
  

 
	
 5.5

 	
 The Borrower has provided to the Lender the resolution and
 authorization approving execution and performance of this Contract issued by
 the board of directors or other authorities of the Borrower;

 
	
  

 	
  

 
	
 5.6

 	
 The capital fund of the same proportion as the proposed facility has
 been made in full, and the actual progress of the project matches with the
 amount which has been invested;

 
	
  

 	
  

 
	
 5.7

 	
 In case of the fixed assets investment project with a big amount of
 investment, high professional technological requirements and which need
 payment by installments in accordance with the progress of the project, the
 Lender shall be entitled to request the Borrower to provide the written
 documents with the signatures of three institutions of supervision,
 assessment and quality inspection etc. for confirmation of the progress and
 quality of the project;

 
	
  

 	
  

 
	
 5.8

 	
 The Borrower has provided the security as required by the Lender, and
 the security contract has come into effect and the legal procedures of
 examination and approval, registration or filling have been completed; and

 

3

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
 5.9

 	
 Other conditions for utilization as stipulated by law or agreed by
 both Parties: The Borrower shall issue a written undertaking to the Lender
 specifying that (1) without the consent of the Lender, the Borrower shall not
 provide the additional external finance and security, the Borrower shall not
 pledge its right to collect electricity fees to the others and shall not
 mortgage the assets of Alu River Hydroelectric Power Station and Zileng River
 Hydroelectric Power Station to the others; (2) following the settlement of
 the existing loan of Alu River Hydroelectric Power Station and Zileng River
 Hydroelectric Power Station in Agricultural Bank of China, the Borrower shall
 open an exclusive account of electricity fees settlement with Bank of China
 Limited Yunnan Branch, and all the revenues of electricity fees shall be
 gathered through such account; (3) the cash flow generated from Alu River
 Hydroelectric Power Station and Zileng River Hydroelectric Power Station
 shall be used in priority for repayment of the due principal and interests of
 the bank. Prior to the repayment of the due principal and interests to the
 Lender as scheduled, the Borrower shall not in any way pay the fixed returns
 or dividend to the shareholders; (4) the Borrower shall notify the Lender of
 the prepayment of the loan.

 
	
  

 	
  

 
	
  

 	
 The Lender may refuse the Borrower’s application for utilization if
 the above conditions for utilization are not satisfied, except the Lender
 agrees to extend the loan.

 
	
  

 	
  

 
	
   6

 	
 Date and method
 for utilization

 
	
  

 	
  

 
	
 6.1

 	
 The Borrower shall draw the loan pursuant to the date and method of (2)
 as follows:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Draw the loan in a lump sum on      /    .

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Draw the loan in full within the period of 90 days since 7
 January 2011.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Draw the loan by installments pursuant to the schedule as follows:

 

	
  

 	
  

 	
  

 
	
 Date of Utilization

 	
  

 	
 Amount of Utilization

 
	

 

 	
  

 	

 

 
	
   / 

 	
  

 	
   / 

 
	
   / 

 	
  

 	
   / 

 
	
   / 

 	
  

 	
   / 

 

	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 The Borrower shall file separate application in accordance with the
 progress of the project and draw with the consent of the Lender. In any event
 the Borrower shall draw the loan in full no later than        /       .

 
	
  

 	
  

 	
  

 
	
 6.2

 	
 The Lender shall be entitled to refuse the Borrower’s application for
 drawing the part of loan which has not been drawn within the above time
 limit.

 
	
  

 	
  

 
	
  

 	
 Where the Lender agrees to extend such delayed amount, it shall be
 entitled to charge the obligation fees at   /    for the delayed
 drawing amount; and where the Lender refuses to extend part of the loan, the
 Lender shall be entitled to charge the obligation fees at   /    for
 such part.

 
	
  

 	
  

 
	
   7

 	
 Payment of the
 amount of the loan

 
	
  

 	
  

 
	
 7.1

 	
 Loan account

 
	
  

 	
  

 
	
  

 	
 The Borrower shall open the following account with the Lender as the
 loan account and the granting and payment of the loan shall be carried out
 through such account.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name of the account: Fugong County Hengda Hydroelectric
 Development Co., Ltd.

 

4

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account No.: 800112475408073001

 
	
  

 	
  

 	
  

 
	
 7.2

 	
 Method of payment of the amount of the loan

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 The method of payment of the amount of the loan shall conform to the
 laws and regulations, regulatory rules and the provisions of this Contract.
 The method of payment of the amount of each drawdown shall be confirmed in
 the application of utilization. Where in the Lender’s opinion, the method of
 payment of the amount of the loan selected in the application of utilization
 does not comply with the requirements, the Lender shall be entitled to change
 the method of payment or cease to grant and pay the amount of the loan.

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Entrusted payment by the Lender means the Lender shall pay the amount
 of the loan to the counterparty of the Borrower in the transaction which
 conforms to the purpose agreed in this Contract, in accordance with the
 application of utilization and entrustment of payment by the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A.

 	
 In accordance with the relevant regulations of the China Banking
 Regulatory Commission and the internal management rules of the Lender, the
 payment of an individual amount of the loan of the Borrower under this
 Contract which exceeds 5% of the total investment of the project (i.e.
 Currency: RMB, Amount: RMB 13,752,700) or RMB 5,000,000 (in
 case of foreign currency, the amount shall be calculated at the exchange rate
 of   /  on the date of actual utilization, similarly hereinafter)
 shall be paid in the method of entrusted payment by the Lender. Under the
 premises of the risks can be controlled, where the individual payment is less
 than RMB 500,000, the method of direct payment by the Borrower can be
 adopted.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 B.

 	
 Other situations which shall adopt the method of entrusted payment
 agreed by the Lender and the
 Borrower:            /           .

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Direct payment by the Borrower, means the Lender shall grant the
 amount of the loan to the Borrower’s account in accordance with the
 application of utilization, and then the Borrower pay directly such amount to
 the counterparty of the Borrower in the transaction which conforms to the
 purpose agreed in this Contract. Unless the above situations agreed to apply
 the entrusted payment by the Lender, the method of payment of other amount of
 the loan shall be direct payment by the Borrower.

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 Change of the method of payment. Following filing the application of
 utilization, if the external payment of the Borrower changes, the payment
 method of the amount to be directly paid which could meet the agreed
 conditions under Clause 7.2 (2) shall change. If the amount of external
 payment, the payee and purpose change in case of change of the method of
 payment or under the entrusted payment, the Borrower shall provide the Lender
 with the written statement of application for change, and re-provide the
 application for utilization and the relevant transaction materials which can
 evidence the purpose.

 
	
  

 	
  

 	
  

 
	
 7.3

 	
 Specific requirements of the entrusted payment of the loan

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Payment entrustment. Where the conditions of entrusted payment by the
 Lender could be satisfied, the Borrower shall specify the payment entrustment
 in the application for utilization, i.e. to authorize and entrust the Lender
 to pay directly the amount of the loan to the counterparty’s account
 appointed by the Borrower which conforms to the agreed purpose upon the
 credit of such amount in the Borrower’s account, and shall provide the
 information necessary for the payment such as the name and the account of the
 counterparty as well as the amount of the payment etc.

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Provision of the transaction materials. Where the conditions of
 entrusted payment by the Lender could be satisfied, the Borrower shall
 provide the Lender with the information of

 

5

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 its loan account, the account of the counterparty in the transaction
 and the evidential materials which can evidence that this utilization
 conforms to the agreed purpose under the facility agreement. The Borrower
 shall guarantee that all the materials provided to the Lender are true,
 complete and effective. Where the Lender fails to perform its obligation of
 entrusted payment due to the untruthfulness, incorrectness and incompleteness
 of the relevant transaction materials provided by the Borrower, the Lender
 shall not bear any responsibility and the obligation of repayment of the
 Borrower which has occurred already under this Contract shall not be
 affected.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Performance of the obligation of entrusted payment of the Lender

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A.

 	
 In case of entrusted payment by the Lender, following the Borrower
 provides the payment entrustment and materials of the relevant transaction,
 the Lender shall, following examination and approval, pay the loan to the
 Borrower’s counterparty in the transaction through the Borrower’s account.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 B.

 	
 Where the Lender found, following examination, that the relevant
 transaction materials such as the evidence document of the purpose do not
 conform to this Contract or are otherwise flawed, it shall be entitled to
 request the Borrower to supplement, replace, state or re-provide the relevant
 materials. Prior to the provision of the relevant transaction materials
 satisfactory to the Lender by the Borrower, the Lender shall be entitled to
 refuse to grant and pay the relevant amount.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 C.

 	
 In case the account bank of the counterparty in the transaction
 refunds and the Lender could not pay duly the loan to its counterparty in
 accordance with the payment entrustment by the Borrower, the Lender shall not
 bear any responsibility, and the obligation of repayment of the Borrower
 which has occurred already under this Contract shall not be affected. The
 Borrower hereby authorizes the Lender to hold the amount refunded by the
 account bank of the counterparty. In such case, the Borrower shall re-provide
 the payment entrustment and relevant transaction materials such as the
 evidential documents of the purpose.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 The Borrower shall not avoid the entrusted payment by the Lender by
 way of breaking up the whole amount into small amounts.

 

	
  

 	
  

 	
  

 
	
   8

 	
 Repayments

 
	
  

 	
  

 
	
 8.1

 	
 Except as otherwise agreed by both Parties, the Borrower shall repay
 the loan hereunder pursuant to (2) as follows:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 All the loan hereunder shall be repaid on the date of expiration of
 the term of the loan.

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The loan hereunder shall be repaid pursuant to the following
 repayment schedule:

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Date of Repayment

 	
  

 	
 Amount of Repayment

 	
  

 	
 Date of Repayment

 	
  

 	
 Amount of Repayment

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 30 June 2011

 	
  

 	
 RMB 2,350,000

 	
  

 	
 30 December 2019

 	
  

 	
 RMB 5,510,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 December 2011

 	
  

 	
 RMB 2,500,000

 	
  

 	
 30 June 2020

 	
  

 	
 RMB 5,000,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 June 2012

 	
  

 	
 RMB 2,660,000

 	
  

 	
 30 December 2020

 	
  

 	
 RMB 5,910,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 December 2012

 	
  

 	
 RMB 3,000,000

 	
  

 	
 30 June 2021

 	
  

 	
 RMB 5,500,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 June 2013

 	
  

 	
 RMB 4,000,000

 	
  

 	
 30 December 2021

 	
  

 	
 RMB 5,820,000

 

6

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 December 2013

 	
  

 	
 RMB 4,080,000

 	
  

 	
 30 June 2022

 	
  

 	
 RMB 5,720,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 June 2014

 	
  

 	
 RMB 4,000,000

 	
  

 	
 30 December 2022

 	
  

 	
 RMB 6,000,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 December 2014

 	
  

 	
 RMB 4,490,000

 	
  

 	
 30 June 2023

 	
  

 	
 RMB 6,000,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 June 2015

 	
  

 	
 RMB 4,400,000

 	
  

 	
 30 December 2023

 	
  

 	
 RMB 6,130,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 December 2015

 	
  

 	
 RMB 4,490,000

 	
  

 	
 30 June 2024

 	
  

 	
 RMB 6,000,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 June 2016

 	
  

 	
 RMB 4,500,000

 	
  

 	
 30 December 2024

 	
  

 	
 RMB 6,530,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 December 2016

 	
  

 	
 RMB 4,800,000

 	
  

 	
 30 June 2025

 	
  

 	
 RMB 6,000,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 June 2017

 	
  

 	
 RMB 4,800,000

 	
  

 	
 30 December 2025

 	
  

 	
 RMB 6,930,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 December 2017

 	
  

 	
 RMB 4,900,000

 	
  

 	
 30 June 2026

 	
  

 	
 RMB 6,500,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 June 2018

 	
  

 	
 RMB 5,000,000

 	
  

 	
 30 December 2026

 	
  

 	
 RMB 7,240,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 December 2018

 	
  

 	
 RMB 5,110,000

 	
  

 	
 30 June 2027

 	
  

 	
 RMB 7,930,000

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 30 June 2019

 	
  

 	
 RMB 5,000,000

 	
  

 	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Other schedule of repayment:        /        .

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 To change the above repayment schedule, the Borrower shall,   3   banking
 days prior to expiration of the relevant loan amount, provide the Lender with
 the written application, and change to such repayment schedule shall be
 subject to the written confirmation of both Parties.

 
	
  

 	
  

 	
  

 
	
  

 	
 If the cash flow of the Borrower is adequate in the period of
 repayment, it shall make use of 90% of the cash flow which can be used for
 repayment to repay the loan.

 
	
  

 	
  

 
	
 8.2

 	
 Except as otherwise agreed by both Parties, on condition that the
 Borrower delays to repay both the principal and interests, the Lender shall
 be entitled to decide the priority of the repayment of the principal or
 interests; if there are several mature loans and overdue loans hereunder in
 case of repayment by installments, the Lender shall be entitled to decide the
 priority of repayment of certain loan by the Borrower; if there are several
 mature loan contracts between both Parties, the Lender shall be entitled to
 decide the priority of performance of each contract by the Borrower.

 
	
  

 	
  

 
	
 8.3

 	
 Except as otherwise agreed by both Parties, the Borrower may prepay
 the loan, provided that it shall give a prior written notice of  1  
 banking day to the Lender. The amount prepaid shall be firstly used to repay
 the loan to be mature lastly, i.e. repayment by the reverse sequence.

 
	
  

 	
  

 
	
  

 	
 The Lender shall be entitled to charge the compensatory fees for the
 loan prepaid at 1%. 

 
	
  

 	
  

 
	
 8.4

 	
 The Borrower shall repay the loan hereunder by the method of (2)
 as follows:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 The Borrower shall, no later than   /  banking days prior to maturity of each sum
 of principal and interests, deposit adequate funds into the following account
 for repayment of the loan, and the Lender shall be entitled to actively
 collect the sum from such account on the mature date of each sum of principal
 and interest.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name of repayment
 account:        /       .

 

7

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account No.:        /       .

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The ratio of the cash flow of the revenue of the fixed assets
 investment project related herewith which can enter into the above repayment
 account shall be:       /      ;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The average existing amount in the above repayment account shall be:
       /      .

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The Borrower shall, no later than 1 banking day prior to maturity of each sum of principal and
 interests, deposit adequate funds into the following account for repayment of
 the loan, and the Lender shall be entitled to actively collect the sum from
 such account on the mature date of each sum of principal and interest.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Name of account: Fugong County Hengda Hydroelectric Development
 Co., Ltd.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Account No.: 800112475408093001.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Other repayment method as agreed by both Parties: _______/________.

 
	
  

 	
  

 	
  

 
	
   9

 	
 Security

 
	
  

 	
  

 
	
 9.1

 	
 The securities for the debt under this Contract are:

 
	
  

 	
  

 
	
  

 	
 the guarantee covering the whole term hereof on the basis of joint
 liability provided by Fujian Huabang Hydroelectric Investment Co., Ltd,
 with the execution of the Contract of Guarantee with the contract number of No.
 FJ001622011006; and

 
	
  

 	
  

 
	
  

 	
 the mortgage with the whole assets of Zileng River Power Station
 provided by Fugong County Hengda Hydroelectric Development Co., Ltd.,
 with the execution of the Contract of Mortgage with the contract number of No.
 FJ001622011007. This Contract is the principal contract of such security.
 Within 3 months from the date of the first utilization by the Borrower under
 this Contract, the Borrower shall complete the mortgage procedures in respect
 of the whole assets of Zileng River Power Station, and the collateral needs
 to be taken out the property insurance with the Lender as the first
 beneficiary. Prior to the loan under this Contract is paid off, if the second
 mortgage can be registered with the local registration authority of the hydroelectric
 power station, the Borrower shall add the mortgage of the whole assets of Alu
 River Power Station with the Lender as the second mortgagee, and execute
 separate contract of mortgage. And this Contract is the principal contract of
 such mortgage.

 
	
  

 	
  

 
	
 9.2

 	
 If any event occurs on the Borrower or the guarantor which, in the
 opinion of the Lender, could affect its ability to perform the contract, or
 the security contracts become invalid, canceled or rescinded, or the
 financial status of the Borrower or security-providers worsens or the
 Borrower or security-providers involves in material action or arbitration, or
 otherwise which could affect its ability to perform the contract, or the
 event of default by the security-providers occurs under the security contracts
 or other contract with the Lender, or the collateral being depreciated,
 damaged, lost or sealed up which could result in the decrease or loss of the
 value of the collateral, the Lender shall be entitled to request and the
 Borrower shall be obliged to supplement the additional security, supplement
 or change the security-provider etc. to secure the debt under this Contract.

 
	
  

 	
  

 
	
  10

 	
 Insurance (This
 clause is optional, and the choice is (1) : (1) applicable, or (2)
 N/A.)

 
	
  

 	
  

 
	
  

 	
 The Borrower shall take out the insurance with the insurers
 acceptable to the Lender against the risks of the equipments, project
 construction, transportation of goods relating to the project or trade
 hereunder and occurring within the project operation, with the coverage as
 required by the Lender and the insured amount not less than the loan
 principal hereunder. 

 

8

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
  

 	
 The Borrower shall provide to the Lender the original of the
 insurance policy within 100 days upon effectiveness of this Contract.
 The Borrower shall not suspend the insurance for any reason unless and until
 the loan principal, interests and expense hereunder are paid off. If the
 Borrower suspends the insurance, the Lender shall be entitled to renew or
 take out the insurance policy on behalf of the Borrower at the expenses of
 the Borrower. The Borrower shall be fully liable for all losses suffered by
 the Lender due to such suspension of the insurance. 

 
	
  

 	
  

 
	
  

 	
 The Borrower shall notify the Lender in writing within 3 days after
 it becomes or should become aware of occurrence of any insurance accident,
 and claim against the insurer in accordance with the relevant provisions of
 the insurance policy. The Borrower shall bear all losses suffered by the Lender
 due to the Borrower’s failure to timely notify the Lender thereof or claim
 for insurance indemnity or perform its obligation under the insurance policy.

 
	
  

 	
  

 
	
  

 	
 Except as otherwise agreed, the insurance indemnities shall firstly
 be used to repay the principal and interests of the loan and other expenses
 payable.

 
	
  

 	
  

 
	
   11

 	
 Representations
 and warranties

 
	
  

 	
  

 
	
 11.1

 	
 The Borrower represents:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 It is duly registered with the
 competent administration for industry and commerce or competent authority and validly
 existing, and has the full ability of civil rights and acts required for
 execution and performance of this Contract; where the Borrower is the new
 established legal person for the project, its shareholders have good credit
 without any bad record; where the proposed investment project is subject to
 the requirements of the investor’s qualification and operational
 qualification by the PRC, all such requirements have been satisfied.

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Its execution and performance of this Contract is its true
 declaration of intent, has obtained legal and valid authorization according
 to its articles of association or other internal management document, and
 will not violate any agreement, contract and other legal documents binding
 upon the Borrower; it has or will obtain all approvals, permits, filings or
 registrations required for its execution and performance of this Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 The Borrower adheres to the principle of good faith, and all
 documents, financial statements, certificates and materials provided by it to
 the Lender hereunder are true, complete, accurate and valid.

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 The transaction background under which it applies to the Lender for
 handling the business hereunder is true and legal, and is not for the purpose
 of money laundering. The purpose of the loan and source of repayment are
 specified and lawful.

 
	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 The Borrower has good credit without any bad record, and the Borrower
 does not conceal with the Lender any event that may affect its financial
 standing or ability of performance.

 
	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 The project of loan and the matters of borrowing conform to the laws,
 regulations, regulatory rules and relevant policies in respect of the
 industry, land and environment of the PRC, and the procedures such as the
 management of the legality of the investment project, the examination and
 approval as well as filling etc. have been implemented in accordance with the
 rules, and conform to the relevant rules of the capital fund system of the
 investment project of PRC. 

 
	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 The Borrower and the project using the loan could meet the standards
 of environmental protection in the PRC, which are not the enterprises and
 projects announced and determined by
 relevant authorities as energy consuming and seriously polluting and failing
 to sufficiently improve as ordered, and there will not exist the risks of
 energy consuming and pollution.

 

9

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 Other matters represented by the Borrower: ____/_______.

 
	
  

 	
  

 	
  

 
	
 11.2

 	
 The Borrower undertakes:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 It will provide regularly or timely to the Lender its financial
 statements (including but not limited to annual reports, quarterly reports
 and monthly reports) and other relevant materials; and the Borrower
 undertakes to continue to meet the requirements on the financial indicators
 as follows:_________/_________.

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 It will draw, pay and use the loan as agreed in this Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 If the Borrower has already executed the counter security agreement
 or similar agreement with the guarantor of this Contract in respect of its
 obligations of guarantee, such agreement shall not affect any rights of the
 Lender under this Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 It will be subject to the inspection and supervision of the Lender
 upon the credit loan, and provide adequate assistance and cooperation. During
 the period from the effective date of this Contract to the date on which all
 the principal and interests of the loan under this Contract and the relevant
 fees are paid off, the Borrower agrees to authorize the Lender to monitor its
 account opened with the Lender, to inspect and analyze the construction and
 operation of the project, and to carry out the dynamic monitoring to the cash
 flow of the revenue of the project and the whole capital flow. The Borrower
 shall accept the inspection and supervision of the Lender upon the use of the
 loan including the purpose by way of account analysis, certificate inspection
 and on-site investigation etc. and provide cooperation, and summarize and
 report regularly to the Lender the payment and use of the loan pursuant to
 the requirements of the Lender. The date of summarized report shall be:
 _____________/____________.

 
	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 In case of occurrence of merger, division, reduction of registered
 capital, equity transfer, external investment, material increase of debt
 finance, transfer of major assets or creditor’s rights and other matters
 which may affect the Borrower’s ability of repayment, the Borrower shall
 obtain the prior written consent of the Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 The Borrower shall notify the Lender timely upon the occurrence of
 the following events:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 A.

 	
 the change of the articles of association, business scope, registered
 capital and legal representative of the Borrower or the security-provider;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 B.

 	
 the change of the mode of business operation such as association in
 any form, foreign joint venture, cooperation, contracting, reorganization,
 restructuring and plan for IPO etc;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 C.

 	
 involvement in material action or arbitration, or the property or
 collateral being sealed up, seized or placed under surveillance in accordance
 with laws, or new material debt being established on the collateral;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 D.

 	
 discontinuation of business, dissolution, liquidation, winding up,
 cancellation, revocation of the business license and application for
 bankruptcy etc.;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 E.

 	
 the shareholder, director and the current management being alleged
 involving with any major legal case or economic dispute;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 F.

 	
 the occurrence of event of default of the Borrower under other
 contract;

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 G.

 	
 the occurrence of the operating difficulties and financial
 deterioration etc..

 
	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 The sequence of its repayment of the Lender’s loan hereunder has
 precedence over the loan extended by its shareholders to it, and is not
 subordinate to the debts of the same kind owed to its other creditors.

 

10

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 Where the after-tax net profit in the relevant fiscal year is zero or
 negative, or the after-tax net profit is not enough to compensate the
 accumulated loss of the previous fiscal years, or the pre-tax profit has not
 been used to repay the due principal and interests and fees in such fiscal
 year, or the pre-tax profit is not enough to pay off the principal and
 interests in the next period, the Borrower will not distribute any dividend
 and bonus to its shareholders in any way;

 
	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 The Borrower will not dispose of its own assets in a manner impairing
 its ability of repayment; the total amount of securities provided by it will
 not be higher than   0.5   times of its net assets, and the total amount of securities
 and the amount of single security will not exceed the limit as stipulated in
 its articles of association; the Borrower shall not provide security to the
 third party with the assets formed by the loan under this Contract without
 the consent of the Lender.

 
	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
 Unless for the purpose agreed in this Contract or with the consent of
 the Lender, the Borrower shall not transfer the loan under this Contract to
 the account with the same name and the affiliate’s account.

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 In case of transfer to the account with the same name and the
 affiliate’s account, the Borrower shall provide corresponding evidential
 documents.

 
	
  

 	
  

 	
  

 
	
  

 	
 (10)

 	
 In respect of the loan under this Contract, the conditions of loan
 such as the security conditions, pricing of the loan interest rate, and the
 sequence of debt service etc. which provided by the Borrower to the Lender
 shall not be less favorable than the conditions which the Borrower provides
 and will provide to any other financial institutions. (This clause is
 optional.)

 
	
  

 	
  

 	
  

 
	
  

 	
 (11)

 	
 It will timely handle with the competent foreign exchange
 administration the procedures for registration of foreign exchange loan and
 approval of repayment of principal and payment of interests and other
 procedures. (This clause is optional.)

 
	
  

 	
  

 	
  

 
	
  

 	
 (12)

 	
 Other matters undertaken by the Borrower: _______/________.

 
	
  

 	
  

 	
  

 
	
  12

 	
 Disclosure of
 related-party transaction in the group of the Borrower

 
	
  

 	
  

 
	
  

 	
 The Borrower is not the group client determined by the Lender
 pursuant to the Guidelines on the Management of Risks of Credits Granted by
 Commercial Banks to Group Clients (“Guidelines”). 

 
	
  

 	
  

 
	
  

 	
 The Lender shall be entitled to decide, at its own discretion, to
 stop to extend the loan not drawn by the Borrower and take back part or whole
 of the principal and interests of the loan in advance, if the Borrower is
 under any of the following circumstances: where based on false contracts with
 related parties, it uses such creditor’s right as any bill receivable or
 account receivable without true trade background to handle discount or pledge
 with the bank so as to illegally obtain the loan or credit of the bank; where
 it is subject to such events as major merger, acquisition or reorganization,
 which may affect the safety of the loan as deemed by the Lender; where it
 intentionally escapes the creditor’s right of the bank through related-party
 transaction; other circumstances as descried in Article 18 of the Guidelines.

 
	
  

 	
  

 
	
  13

 	
 Events of default
 and handling

 
	
  

 	
  

 
	
 13.1

 	
 Any of the following events shall constitute or be deemed as an event
 of breach by the Borrower hereunder:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 The Borrower fails to perform its obligations of payment and
 repayment pursuant to the provisions contained herein;

 
	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 The Borrower fails to draw and use the loan in the agreed method
 hereunder or fails to use the loan for the agreed purpose hereunder, or the
 Borrower violates the provisions 

 

11

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 hereof and break up the whole amount into small amounts in order to
 avoid the entrusted payment by the Lender;

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Any representation made by the Borrower herein is untrue or violates
 any undertaking made by the Borrower herein;

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 In case of occurrence of the circumstances as described in Clause 11.2
 (5) hereof, the Lender deems it will affect the financial condition and
 ability of performance of the Borrower, but the Borrower fails to provide new
 security and replace the guarantor pursuant to the provisions of this
 Contract;

 
	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 Any event of default occurs with respect of the Borrower under other
 contracts signed by it and the Lender or other branches of Bank of China
 Limited;

 
	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 The security-provider violates the provisions of the security contracts,
 or any event of default occurs with respect of the security-provider under
 other contracts signed by it and the Lender or other branches of Bank of China
 Limited;

 
	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 The discontinuation of business or the event of dissolution,
 cancellation or bankruptcy occurs with respect of the Borrower;

 
	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 The Borrower involves or may involve in material economic dispute,
 action or arbitration, or its assets is sealed up, seized or enforced, or
 being on file for investigation or punished in accordance with laws by the
 judicial authorities or tax and industrial and commercial authorities, which
 already or may affect its performance of the obligations hereunder;

 
	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
 The abnormal change, missing or being investigated or restricted of
 the personal freedom in accordance with laws by the judicial authorities
 occurs to the main investor or key management of the Borrower, which already
 or may affect its performance of the obligations hereunder;

 
	
  

 	
  

 	
  

 
	
  

 	
 (10)

 	
 The capital fund of the project fails to be made in place as
 scheduled or proportionately, or fails to be supplemented with the time limit
 set out by the Lender;

 
	
  

 	
  

 	
  

 
	
  

 	
 (11)

 	
 The progress of the project lags behind the progress of the use of
 the fund;

 
	
  

 	
  

 	
  

 
	
  

 	
 (12)

 	
 The quality of construction of the project does not conform to the
 national or industrial standards;

 
	
  

 	
  

 	
  

 
	
  

 	
 (13)

 	
 The credit standing of the Borrower has decreased, or the ability of
 making profits, debt service, operation and the financial indicators such as
 cash flow etc. has deteriorated, which is beyond the indicator limit or other
 financial agreement hereunder;

 
	
  

 	
  

 	
  

 
	
  

 	
 (14)

 	
 When the Lender reviews the financial status and ability of performance
 of the Borrower annually (i.e. on the dates following every one year after
 the date of this Contract), it found any circumstance which may affect the
 financial condition and ability of performance or the Borrower and the security-provider;

 
	
  

 	
  

 	
  

 
	
  

 	
 (15)

 	
 The Borrower violates other provisions in respect of the rights and
 obligations of the party hereunder.

 
	
  

 	
  

 	
  

 
	
 13.2

 	
 In case of occurrence of any of the above events of default, the
 Lender shall be entitled to take one or more of the following measures based
 on the specific circumstances:

 
	
  

 	
  

 	
  

 
	
  

 	
 (1)

 	
 Require the Borrower or the security-provider to rectify its default
 within a stipulated time limit.

 

12

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
  

 	
 (2)

 	
 Reduce, suspend, cancel or terminate the credit line granted to the
 Borrower in part or in whole.

 
	
  

 	
  

 	
  

 
	
  

 	
 (3)

 	
 Suspend or terminate acceptance of the Borrower’s application for
 utilization under this Contract and other contracts between the Lender and
 the Borrower in part or in whole; suspend or terminate in part or in whole
 extending and handling any loan and trade financing not extended and handled.

 
	
  

 	
  

 	
  

 
	
  

 	
 (4)

 	
 Accelerate in part or in whole the principal, interests and other
 payables of the loan/trade financing outstanding under this Contract and
 other contracts between the Lender and Borrower.

 
	
  

 	
  

 	
  

 
	
  

 	
 (5)

 	
 Change the conditions of the granting and payment of the loan based
 on the credit standing of the Borrower, such as decreasing the minimum amount
 of entrusted payment etc. or transfer back the fund paid by the Borrower with
 default etc.

 
	
  

 	
  

 	
  

 
	
  

 	
 (6)

 	
 Terminate or cancel this Contract, and terminate other contracts
 between the Borrower and Lender in part or in whole.

 
	
  

 	
  

 	
  

 
	
  

 	
 (7)

 	
 Request the Borrower to indemnify the losses Lender incurs due to the
 Borrower’s default.

 
	
  

 	
  

 	
  

 
	
  

 	
 (8)

 	
 Only by giving a prior or subsequent notice, transfer the amounts in
 the accounts opened by the Borrower with the Lender and other branches of
 Bank of China Limited to service all or part of the debts owed to the Lender
 under this Contract. The un-matured amount in such accounts shall be deemed
 mature in advance. If the currency in such accounts is not the same as that
 used by the Lender for settlement, the amounts in such accounts shall be
 converted at the quoted exchange rate for settlement and sales of foreign
 exchange applicable to the Lender at the time of transfer.

 
	
  

 	
  

 	
  

 
	
  

 	
 (9)

 	
 Exercise the real right of security; request the guarantor to bear
 the responsibility of guarantee.

 
	
  

 	
  

 	
  

 
	
  

 	
 (10)

 	
 Other measures necessary and practicable as deemed by the Lender.

 
	
  

 	
  

 	
  

 
	
 14

 	
 Waiver

 
	
  

 	
  

 
	
  

 	
 No failure by either party to exercise its rights hereunder in part
 or in whole or require the other party to perform or bear part or whole
 obligations and liabilities shall operate as waiver by such party of such
 rights or such obligations and liabilities. 

 
	
  

 	
  

 
	
  

 	
 No forbearance and grace or delay by either party in exercise of the
 rights hereunder shall affect any of its rights available according to this
 Contract or laws and regulations, nor deemed as waiver of such rights.

 
	
  

 	
  

 
	
 15

 	
 Change,
 modification and termination

 
	
  

 	
  

 
	
  

 	
 This Contract may be changed or modified in writing upon agreement by
 both Parties through consultation. Any change or modification shall
 constitute integral part of this Contract. 

 
	
  

 	
  

 
	
  

 	
 Except as otherwise set out by laws and regulations or agreed by both
 Parties, this Contract shall not be terminated unless and until all the
 rights and obligations hereunder are completely performed. 

 
	
  

 	
  

 
	
  

 	
 Except as otherwise set out by laws and regulations or agreed by both
 Parties, the invalidity of any terms hereof shall not affect the validity of
 the remaining terms hereof.

 

13

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 	
  

 
	
   16

 	
 Applicable law
 and dispute settlement

 
	
  

 	
  

 
	
  

 	
 This Contract shall be governed by the laws of the People’s Republic
 of China. 

 
	
  

 	
  

 
	
  

 	
 Any dispute arising out of or in connection with execution and
 performance of this Contract following the effectiveness of this Contract may
 be settled by both Parties through consultation. Where such dispute fails to
 be settled through consultation, either party may adopt the method of 2
 as follows: 

 
	
  

 	
  

 
	
 16.1

 	
 Submit the dispute to   /        Arbitration Commission for
 arbitration in accordance with the arbitration rules which is in effect at
 the time of application for arbitration in    /   (place of
 arbitration).

 
	
  

 	
  

 
	
 16.2

 	
 Bring a lawsuit in the people’s court of the place where domicile of
 the Lender or other branches of Bank of China Limited performing the rights
 and obligations under this Contract or a single agreement is located.

 
	
  

 	
  

 
	
 16.3

 	
 Bring a lawsuit in the competent people’ court having jurisdiction
 over such dispute.

 
	
  

 	
  

 
	
  

 	
 If the remaining terms hereof other than those under dispute are not
 affected by such dispute during the period of dispute, such remaining terms
 shall still be performed.

 
	
  

 	
  

 
	
   17

 	
 Expenses

 
	
  

 	
  

 
	
  

 	
 Except as otherwise determined according to law or agreed by both
 Parties, the expenses for execution, performance and dispute settlement of
 this Contract (including but not limited to attorney fees) shall be borne by
 the Borrower.

 
	
  

 	
  

 
	
  

 	
 The arrangement fee shall be agreed by both Parties through
 consultations and shall be paid regularly by the Borrower to the Lender, which
 shall be calculated from the date of actual utilization, based on the days of
 the actual utilization and use of the loan, settled on quarterly basis and
 paid on the date of interests payment in each quarter. The calculating
 formula shall be as follows: Loan Arrangement Fee = Principal * At Least
 5-Year Term RMB Loan Benchmark Interest Rate Set Out in Clause 4 hereof * 5%
 * N Days/360, in which N refers to the actual days of loan in each quarter.

 
	
  

 	
  

 
	
   18

 	
 Appendices

 
	
  

 	
  

 
	
  

 	
 The following Appendix and other appendices as confirmed by both
 Parties shall be integral part of this Contract and have the same legal
 validity as this Contract.

 
	
  

 	
  

 	
  

 
	
  

 	
 1

 	
 The Application for Utilization (Form):

 
	
  

 	
  

 	
  

 
	
   19

 	
 Miscellaneous

 
	
  

 	
  

 	
  

 
	
 19.1

 	
 The Borrower shall not transfer any of its rights and obligations
 hereunder to any third party without written consent of the Lender.

 
	
  

 	
  

 
	
 19.2

 	
 If the Lender needs to entrust other branches of Bank of China
 Limited to perform the rights and obligations hereunder, or transfer the loan
 hereunder to other branches of Bank of China Limited who will assume and
 manage the loan, the Borrower shall accept the same. Other branches of Bank
 of China Limited as entrusted by the Lender or assuming the loan hereunder
 shall have the right to exercise all rights hereunder, bring a lawsuit in the
 people’s court in their own names and apply for arbitration or enforcement in
 case of occurrence of any dispute hereunder.

 
	
  

 	
  

 
	
 19.3

 	
 This Contract shall be legally binding upon and inure to the benefits
 of both Parties and their respective heirs and permitted assigns without
 prejudice to other provisions contained herein.

 

14

	
  

 
	
 Fixed Assets Loan Contract (2010 Amended
 Version)

 
	

 

 

 

	
  

 	
  

 
	
 19.4

 	
 Except as otherwise agreed, the domiciles of both Parties as
 specified in this Contract shall be the correspondence and contact addresses.
 In case of any change thereof, either party shall timely notify the other
 party in writing.

 
	
  

 	
  

 
	
 19.5

 	
 The transaction hereunder shall be based on independent benefits of
 each party. If other parties under such transaction shall constitute related
 parties of the Lender in accordance with the relevant laws, regulations and
 regulatory requirements, the parties shall not impair the fairness of such
 transaction by taking advantage of such related-party relationship.

 
	
  

 	
  

 
	
 19.6

 	
 All captions and name of business in this Contract are inserted only
 for the convenience of reference, and shall not affect the interpretation of
 the terms hereof and the rights and obligations of both Parties.

 
	
  

 	
  

 
	
 19.7

 	
 The Lender shall be entitled to, in accordance with the relevant
 laws, regulations and regulatory rules, provide the relevant information of
 this Contract and the Borrower to the Credit Reference System of People’s
 Bank of China and other credit information data base duly established, for
 the inquiry and use by the properly qualified organization and individual in
 accordance with laws. The Lender shall also be entitled to inquire the
 relevant information of the Borrower through the Credit Reference System of
 People’s Bank of China and other credit information data base duly
 established.

 
	
  

 	
  

 
	
 19.8

 	
 □ Within ___ Business Days following the date of execution of
 this Contract, the Borrower shall go to the public notary office with the
 Lender to handle the notarization of enforcement. In case the Borrower does
 not perform or fails to duly perform its repayment obligations, the Lender
 may have the right to apply to the competent people’s court for enforcement,
 and the Borrower shall be willing to accept such enforcement. (This clause is
 optional.)

 
	
  

 	
  

 
	
 19.9

 	
 If the date of utilization or repayment is a public holiday, then it
 shall be postponed accordingly to the first Business Day following the public
 holiday.

 
	
  

 	
  

 
	
   20

 	
 Effectiveness

 
	
  

 	
  

 
	
  

 	
 This Contract shall become effective on the date when it is signed by
 the legal representative (responsible person) or authorized signatory and
 affixed with the common seal of each party. 

 
	
  

 	
  

 
	
  

 	
 This Contract is executed in triplicate, of which each party
 holds one, being equally authentic.

 

	
  

 	
  

 	
  

 
	
 The Borrower: Fugong
 County Hengda Hydroelectric Development Co., Ltd.

 	
  

 	
 Lender: Bank of
 China Limited Fujian Branch

 
	
  

 	
  

 	
  

 
	
 (stamp)

 	
  

 	
  (stamp)

 
	
  

 	
  

 	
  

 
	
 Authorized
 signatory: _________

 	
  

 	
 Authorized
 signatory: _________

 
	
  

 	
  

 	
  

 
	
 Date:   7 January 2011      

 	
  

 	
 Date:   7 January 2011      

 

15Exhibit 4.129

Grid Connection and Dispatching Agreement

Between

Yunnan Grid Company

And

Luquan Xiaopengzu Power Generation Co., Ltd.

(Xiaopengzu Power Plant and Yunnan Grid)

March 2010

(Agreement No.: DDXY-2010-60)

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 Grid
Company, a company which engages in the Grid operation.

Domicile: No. 49 Tuo Dong Road,
Kunming City, Yunnan Province.

Party B: Luquan Xiaopengzu
Power Generation Co., Ltd., a company which engages in the electricity
generation.

Domicile: Cuihua Township,
Luquan 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 Xiaopengzu Power Plant with the total installed capacity of 40MW
 (“Power Plant”) in Cuihua Township, Luquan 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 Yunnan
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 Yunnan Power Dispatching Centre (“Provincial Dispatch”) which is the
 primary dispatching agency of Yunnan Grid, and the Dispatching Centre of
 Kunming Power Supply Bureau (“Kunming Local Dispatch”) which is the secondary
 dispatching agency of Yunnan Grid. Both will organize, direct, instruct and
 coordinate the operation of the electricity system in accordance with laws
 and belong to Party A.

 
	
  

 	
  

 
	
  

 	
 1.1.2 Power Plant means
 Xiaopengzu Power Plant owned, operated and managed by Party B with the total
 installed capacity of 40MW (2 units, including No. 1 unit with 20MW and No.2
 unit with 20MW, and see the technical specifications in Schedule 2) in

 

2

	
  

 	
  

 
	
  

 	
 Cuihua Township, Luquan
 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 (see in Schedule 1).

 
	
  

 	
  

 
	
  

 	
 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.

 
	
  

 	
  

 
	
  

 	
 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.

 

3

	
  

 	
  

 
	
  

 	
 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 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 Yunnan Grid
 Dispatching Management and the Regulations of Kunming 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.

 

4

	
  

 	
  

 
	
  

 	
 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:

 
	
  

 	
  

 
	
 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.

 

5

	
  

 	
  

 
	
 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 (see the division of the
 jurisdiction of dispatching in Schedule 3); 

 
	
  

 	
  

 
	
  

 	
 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.

 
	
  

 	
  

 
	
  

 	
 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.

 

6

	
  

 	
  

 
	
 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 

 

7

	
  

 	
  

 
	
  

 	
 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.

 
	
  

 	
  

 
	
 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 

 

8

	
  

 	
  

 
	
  

 	
 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

 
	
  

 	
  

 
	
  

 	
 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 

 

9

	
  

 	
  

 
	
  

 	
 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.

 
	
  

 	
  

 
	
  

 	
 (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 

 

10

	
  

 	
  

 
	
  

 	
 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;

 
	
  

 	
  

 
	
  

 	
 (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;

 
	
  

 	
  

 
	
  

 	
 (5) Test of minimum
 technical output and unit vibration area.

 

11

	
  

 	
  

 
	
  

 	
 The grid connection unit
 must pass the tests set out in (1), (2), (3) and (4) above, and may conduct a
 full-load commissioning only when approved by the Dispatch Agency. Tests set
 out in (5) 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.

 

12

	
  

 	
  

 
	
 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 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 Yunnan
 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 Yunnan 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.

 

13

	
  

 	
  

 
	
 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 business
 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:

 
	
  

 	
  

 
	
  

 	
 (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.

 

14

	
  

 	
  

 
	
  

 	
 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.

 
	
  

 	
  

 
	
  

 	
 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.

 

15

	
  

 	
  

 
	
  

 	
 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.

 
	
  

 	
  

 
	
  

 	
 (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:

 

16

	
  

 	
  

 
	
  

 	
 (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): 

 

17

	
  

 	
  

 
	
  

 	
 (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%;

 
	
  

 	
  

 
	
  

 	
 (3) The hit rate of the
 operation of all protections 3 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 Provincial Dispatch, the secondary
 dispatching agency and relevant dispatching automation system and the
 Provincial Dispatch’s 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.

 

18

	
  

 	
  

 
	
  

 	
 (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.

 
	
  

 	
  

 	
  

 
	
  

 	
 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.

 

19

	
  

 	
  

 
	
  

 	
 (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 business 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
 Yunnan Grid Dispatching Management, the Interim Provisions on Yunnan Grid
 Dispatching Automation Management and the Rules on Yunnan Grid Automatic
 Power Generation Control Management, and must not wilfully withdraw or cease
 such equipment.

 
	
  

 	
  

 
	
 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.

 

20

	
  

 	
  

 
	
 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.

 
	
  

 	
  

 
	
 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.

 

21

	
  

 	
  

 
	
 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.

 

22

	
  

 	
  

 
	
  

 	
 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 3%;

 
	
  

 	
  

 
	
  

 	
 (2) the speed dead band of
 the main servomotor on the side iX shall be no more than 0.04%;

 
	
  

 	
  

 
	
  

 	
 the dead time of the
 servomotor shall be no more than 0.2S;

 
	
  

 	
  

 
	
  

 	
 (3) the dead band of the
 primary frequency regulation of the units shall be no more than ±0.05Hz; 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;

 

23

	
  

 	
  

 
	
  

 	
 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 (SCADA/EMS). 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.

 
	
  

 	
  

 
	
  

 	
 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

 

 24

 	
  

 	
  

 
	
  

 	
 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.

 
	
  

 	
  

 
	
  

 	
 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.

 

 25

 	
  

 	
  

 
	
  

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

 

 26

 	
  

 	
  

 
	
 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.

 

 27

 	
  

 	
  

 
	
  

 	
 (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.

 
	
  

 	
  

 
	
  

 	
 (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.

 

 28

 	
  

 	
  

 
	
 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.

 
	
  

 	
  

 
	
 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 

 

 29

 	
  

 	
  

 
	
  

 	
 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

 	
 Schedules

 
	
  

 	
  

 
	
  

 	
 Schedule 1: Diagram of
 Grid Connection Points

 
	
  

 	
  

 
	
  

 	
 Schedule 2: Power Plant
 Technical Parameters

 
	
  

 	
  

 
	
  

 	
 Schedule 3: Division of
 Scope of Dispatch of Plant’s Equipment

 
	
  

 	
  

 
	
  

 	
 The schedules to this
 Agreement (including the special terms) are the integral part of this
 Agreement, and shall be as valid as this Agreement. In case any discrepancy
 occurs between the interpretation of the body text and the schedules of this
 Agreement, in consideration of the nature of the subject matter of the
 dispute, the content which is most relevant to the dispute and can better
 handle such dispute shall be prevail. If the discrepancy and dispute cannot
 be solved in accordance the above principles, both Parties shall negotiate
 to determine on a good faith basis for the purpose of this Agreement.

 
	
  

 	
  

 
	
 21.3

 	
 Entire Agreement

 
	
  

 	
  

 
	
  

 	
 This Agreement (including
 the special terms) and its schedules constitute 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.

 
	
  

 	
  

 
	
 21.4

 	
 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:

 
	
  

 	
  

 
	
  

 	
 Yunnan Power Dispatching
 Centre

 
	
  

 	
  

 
	
  

 	
 Attention: Luan Yi

 
	
  

 	
  

 
	
  

 	
 Telephone: (0871) 3012761
 Fax: (0871) 3012730 

 
	
  

 	
  

 
	
  

 	
 Email: yyk@yepg.com

 
	
  

 	
  

 
	
  

 	
 Address: No. 49 Tuo Dong
 Road, Kunming City, Yunnan Province. Postal Code: 650011

 
	
  

 	
  

 
	
  

 	
 Local Dispatch:

 

 30

 	
  

 	
  

 
	
  

 	
 Dispatching Agency of
 Kunming Power Supply Bureau

 
	
  

 	
  

 
	
  

 	
 Attention: Li Xiao Song

 
	
  

 	
  

 
	
  

 	
 Telephone: (0871) 3068638
 Fax: (0871) 3068385

 
	
  

 	
  

 
	
  

 	
 Email: lxskm@126.com

 
	
  

 	
  

 
	
  

 	
 Address: No. 39 Tuo Dong
 Road, Kunming City, Yunnan Province. Postal Code: 650011

 
	
  

 	
  

 
	
  

 	
 Party B: 

 
	
  

 	
  

 
	
  

 	
 Luquan Xiaopengzu Power
 Generation Co., Ltd.

 
	
  

 	
  

 
	
  

 	
 Attention: Zhang Mei

 
	
  

 	
  

 
	
  

 	
 Telephone: 13888516682 Fax:
 8863500 

 
	
  

 	
  

 
	
  

 	
 Email: zm918125@126.com

 
	
  

 	
  

 
	
  

 	
 Address: Township Post Office
 C/O, Dong Village, Fumin County Postal Code: 650405

 
	
  

 	
  

 
	
 21.5

 	
 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.

 
	
  

 	
  

 
	
 21.6

 	
 Continue to be Effective

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
 21.7

 	
 Counterparts

 
	
  

 	
  

 
	
  

 	
 This Agreement shall be
 executed in quintuplicate, and each Party will hold 2 copies and the
 electricity regulatory commission will hold one copy. 

 

 	
  

 	
  

 
	
 Party A (seal):

 	
 Party B (seal):

 
	
  

 	
  

 
	
 Legal Representative:

 	
 Legal Representative:

 
	
  

 	
  

 
	
 Or

 	
 Or

 
	
  

 	
  

 
	
 Authorized
 Representative:

 	
 Authorized
 Representative:

 
	
  

 	
  

 
	
 Date of Execution:

 	
  

 

 31

 Special
 Terms

 Reservoir Operation
 of Xiaopengzu Power Plant

 	
  

 	
  

 
	
 1.1

 	
 Reservoir particulars and
 basic parameters

 
	
  

 	
  

 
	
  

 	
 1.1.1 The Power Plant’s
 reservoir regulation: weekly reservoir regulation

 
	
  

 	
  

 
	
  

 	
 1.1.2 Basic parameters

 
	
  

 	
  

 
	
  

 	
 (1) drainage area under
 control: 8,162 km2

 
	
  

 	
  

 
	
  

 	
 (2) normal water storage
 level and corresponding storage capacity: 1,561.0 m, 16,540,000 m3

 
	
  

 	
  

 
	
  

 	
 (3) dead water level and
 corresponding storage capacity: 1,553.0 m, 11,420,000 m3

 
	
  

 	
  

 
	
  

 	
 (4) designed flood water
 level and corresponding storage capacity: 1,558.34 m, 14,650,000 m3

 
	
  

 	
  

 
	
  

 	
 (5) maximum flood water level
 and corresponding storage capacity: 1,561.26 m, 16,770,000 m3

 
	
  

 	
  

 
	
  

 	
 1.1.3 Storage capacity

 
	
  

 	
  

 
	
  

 	
 (1) total storage
 capacity: 16,770,000 m3

 
	
  

 	
  

 
	
  

 	
 (2) storage capacity for
 irrigation, water supply and power supply: 5,120,000 m3

 
	
  

 	
  

 
	
  

 	
 1.1.4 Rate of flow

 
	
  

 	
  

 
	
  

 	
 (1) designed flood: 1,700
 m3/s

 
	
  

 	
  

 
	
  

 	
 (2) maximum flood: 2,520
 m3/s

 
	
  

 	
  

 
	
  

 	
 (3) designed maximum down
 flow: 1,700 m3/s

 
	
  

 	
  

 
	
  

 	
 (4) designed minimum down
 flow: 1,700 m3/s

 
	
  

 	
  

 
	
  

 	
 (5) maximum power
 generation: 83.5 m3/s

 
	
  

 	
  

 
	
 1.2

 	
 Reservoir operation scope

 
	
  

 	
  

 
	
  

 	
 The power generation
 dispatching of the reservoir shall be the charge of the power dispatching
 agency, while the flood prevention and control shall be the charge of the
 Power Plant and the local flood-prevention department.

 
	
  

 	
  

 
	
 1.3

 	
 Reservoir operation
 principles

 
	
  

 	
  

 
	
  

 	
 (1) The reservoir
 operation shall be conducted in accordance with relevant laws and
 regulations, as well as the reservoir operation rules so as to ensure safe
 operation of the reservoir.

 

 32

 	
  

 	
  

 
	
  

 	
 (2) The reservoir
 operation shall be conducted in strict accordance with the designed flood prevention
 principles so as to ensure the safety of the key project, and meet the
 requirements of anti-flood standards in the upper reach and the lower reach.
 

 
	
  

 	
  

 
	
  

 	
 (3) Making full use of
 water energy resources, and giving full play to the role of the comprehensive
 use of the reservoir. 

 
	
  

 	
  

 
	
 1.4

 	
 Basic requirements on
 reservoir operation

 
	
  

 	
  

 
	
  

 	
 (1) Party B shall provide
 to Party A the hydroelectric station designing materials, operation
 statistics, and the operation summery required by Party A.

 
	
  

 	
  

 
	
  

 	
 (2) The Power Plant shall
 timely formulate an annual flood control proposal on the basis of designed
 anti-flood standards, the reservoir flood control principles and actual
 conditions. After the proposal is approved, the Power Plant shall file it to
 the power dispatching agency for record before May 31 each year. The Power
 Plant shall keep close watch on the climate change in the vicinity during
 the flood period, and provide information about hydrology and flood
 prevention in a timely manner, and do a good job in forecasting the
 short-term flood. In the event of a serious flood situation or a climate
 which may cause disaster, Party B shall promptly notify Party A. The power
 dispatching agency shall actively cooperate with the anti-flood commanding
 authorities in doing a good job in the Power Plant’s flood control work. 

 
	
  

 	
  

 
	
  

 	
 (3) The Power Plant shall
 strengthen the maintenance and management of the automatic monitoring and
 reporting system, ensure its reliability. The normal operation rate must be
 higher than 95%; and the qualified rate of hydrology forecasting 92%. The
 Power Plant shall report information concerning water situation to the power
 dispatching agency in a timely, accurate and reliable manner, and be subject
 to supervision and appraisal by the power dispatching agency.

 
	
  

 	
  

 
	
  

 	
 (4) When the repair or
 maintenance of any hydraulic works affects normal power generation of the
 Power Plant, the reservoir management office shall formulate a temporary
 operation proposal and submit the same to the power dispatching agency. 

 
	
  

 	
  

 
	
  

 	
 (5) The water level of
 the Power Plant’s reservoir shall be controlled in accordance with the
 designed operation diagram or the reservoir’s water level drop plan agreed
 by both Parties, and ensure that the water level must not be lower than the
 designed dead water level when the Power Plant is operating. Generally, the
 water level of the reservoir must reach the normal water storage level at
 the end of the flood period of each year.

 
	
  

 	
  

 
	
  

 	
 (6) The comprehensive
 economic efficiency of the Power Plant should be brought to the full, and
 the role of the Power Plant should be fully displayed in frequency
 regulation, peak regulation and reservation for guarding against any
 accident, provided that the Power Plant’s dam and equipment are in sound
 conditions.

 
	
  

 	
  

 
	
  

 	
 (7) Both Parties shall
 cooperate with each other, make joint effort, make full use the water
 energy, use water economically and strive to generate as much electricity as
 possible. In the event of conflict between the reservoir safety on the one
 hand and the irrigation, water supply or power supply on the other, the
 latter shall make way for the former.

 

 33

 Schedule 1: Diagram of Grid Connection Points

 

 34

 Pushifulu I circuit

 35

 Schedule 2: Power Plant Technical Parameters

 	
  

 	
  

 
	
 1

 	
 Nameplate parameters of
 the Power Plant’s units 

 

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Unit

 No.

 	
  

 	
 Model

 of 

 hydraulic 

 turbine

 	
  

 	
 producer

 	
  

 	
 Model of

 generator

 	
  

 	
 producer

 	
  

 	
 rated

 capacity

 	
  

 	
 rated

 revolution 

 speed

 	
  

 	
 rated

 capacity 

 factor

 	
  

 	
 Terminal

 voltage

 	
  

 	
 Main

 transformer 

 No.

 	
  

 	
 Model of 

 main 

 transformer

 	
  

 	
 producer

 	
  

 	
 rated

 capacity of 

 the main 

 transformer

 
	

 	
  

 	

 	
  

 	

 	
  

 	

 	
  

 	

 	
  

 	

	
  

 	

	
  

 	

	
  

 	

	
  

 	

	
  

 	

	
  

 	

 	
  

 	

 
	
 No.1

 	
  

 	
 HLA616-LJ-216

 	
  

 	
 Fujian Nanping Nandian
 Hydraulic Equipment Manufacturing Co., Ltd.

 	
  

 	
 SF20-20/4800

 	
  

 	
 Fujian Nanping Nandian
 Hydraulic Equipment Manufacturing Co., Ltd.

 	
  

 	
 20MW

 	
  

 	
 300r/min

 	
  

 	
 0.8

 	
  

 	
 10.5kV

 	
  

 	
 No. 1

 	
  

 	
 S10-63000/110

 	
  

 	
 Shandong Taikai
 Transformer Co., Ltd.

 	
  

 	
 63MVA

 
	
 No.2

 	
  

 	
 HLA616-LJ-216

 	
  

 	
 Fujian Nanping Nandian
 Hydraulic Equipment Manufacturing Co., Ltd.

 	
  

 	
 SF20-20/4800

 	
  

 	
 Fujian Nanping Nandian
 Hydraulic Equipment Manufacturing Co., Ltd.

 	
  

 	
 20MW

 	
  

 	
 300r/min

 	
  

 	
 0.8

 	
  

 	
 10.5kV

 	
  

 	
 No. 1

 	
  

 	
 S10-63000/110

 	
  

 	
 Shandong Taikai
 Transformer Co., Ltd.

 	
  

 	
 63MVA

 

 36

 	
  

 	
  

 
	
 2

 	
 Grid connection route
 from the Power Plant to Party A’s grid

 
	
  

 	
  

 
	
  

 	
 (1) Name of the route:
 Pushifulu I circuit

 
	
  

 	
  

 
	
  

 	
 (2) Voltage: 110kV

 
	
  

 	
  

 
	
 3

 	
 Party B shall correctly
 provide other technical parameters of the Power Plant on the basis of the
 equipment designing parameters and the results of the grid connection
 commissioning.

 
	
  

 	
  

 
	
 3.1

 	
 Output range of normal
 operation

 
	
  

 	
  

 
	
  

 	
 The maximum output of
 normal operation of the Power Plant’s No. 1 unit and No.2 unit shall be 120%
 of the rated output, and the minimum output 50% of the rated output.

 
	
  

 	
  

 
	
 3.2

 	
 When the grid is in a
 special circumstance, the maximum output of normal operation of the Power
 Plant’s No. 1 unit and No.2 unit shall be 134% of the rated output, and the
 minimum output 50% of the rated output.

 
	
  

 	
  

 
	
 3.3

 	
 The designed minimum
 technical output of the Power Plant’s No. 1 unit and No.2 unit shall be 10
 MW, and that of vibration area 7 to 8 MW (for the vibration area, it needs
 filling out only for hydroelectric unit).

 
	
  

 	
  

 
	
 3.4

 	
 3.4 Power adjustment
 speed rate of the unit during the normal operation period:

 
	
  

 	
  

 
	
  

 	
 No. 1 unit: 4 MW/min.

 
	
  

 	
  

 
	
  

 	
 No. 2 unit: 4 MW/min.

 
	
  

 	
  

 
	
 3.5

 	
 The shortest time from
 the receipt of the dispatching instruction to the transmission of the output
 from Power Plant’s No. 1 unit and No.2 unit to the grid, or from zero output
 to the rated output shall be 5 minutes.

 
	
  

 	
  

 
	
 3.6

 	
 The shortest time to stop
 the unit upon a dispatching instruction from the full load capacity to the
 zero load capacity shall be 2 minutes.

 
	
  

 	
  

 
	
 3.7

 	
 The shortest time to stop
 the operation of Power Plant’s No. 1 unit and No.2 unit from unit
 disconnection to the resumption of grid connection shall be 5 minutes.

 
	
  

 	
  

 
	
 3.8

 	
 After Power Plant’s No. 1
 unit and No.2 unit have reached minimum operation level or above, the
 shortest time for them to maintain such operation level is 5 minutes.

 
	
  

 	
  

 
	
 3.9

 	
 Power Plant’s No. 1 unit
 and No.2 unit, when providing output at a rated capacity, may operate on the
 basis of the capacity factor with a lead of 0.95 or more. The leading-phase
 capability in other working conditions shall be determined by the results of
 the leading-phase test.

 
	
  

 	
  

 
	
 4

 	
 After the Power Plant has
 been launched into production, if Party B discovers any change to the unit
 operation parameters resulting in its inability to reach the technical
 indicators prescribed in Clause 3 above, therefore the relevant parameters
 need revising. The Power Plant shall give an explanation to the power dispatching
 agency, and submit the test report confirmed by a qualified organization. 

 

 37

 Schedule 3 Division of Scope of Dispatch of Plant’s
 Equipment

 	
  

 	
  

 
	
  

 	
 (1) Party B’s Power Plant
 is a power plant subject to joint dispatching of the Provincial Dispatch and
 Local Dispatch. The dispatching work, corresponding to Clause 8.1-8.3 (power
 generation plan) of this Agreement, shall be under the charge of Party A’s
 Provincial Dispatch, and the remaining dispatching and management work of
 Party B’s Power Plant shall be under the charge of Party B’s Kunming Local
 Dispatch. 

 
	
  

 	
  

 
	
  

 	
 (2) Kunming Local
 Dispatch’s scope of dispatch

 
	
  

 	
  

 
	
  

 	
 1 The primary equipment
 for Plant’s No. 1 and No. 2 units of hydraulic turbine generators;

 
	
  

 	
  

 
	
  

 	
 2 The Primary equipment
 for Plant’s No. 1 main transformer (the overcurrent protection constant
 value of the residual current of No. 1 main transformer 110kV shall be
 adjusted and calculated by Kunming Local Dispatch);

 
	
  

 	
  

 
	
  

 	
 3 The route of Plant’s
 110 kV Pushifulu I return circuit;

 
	
  

 	
  

 
	
  

 	
 4 The primary and
 secondary equipment for the circuit breaker of the Power Plant’s 110 kV
 Pushifulu I return and entry circuit;

 
	
  

 	
  

 
	
  

 	
 (3) Kunming Local
 Dispatch’s scope of dispatch license and the Power Plant’s equipment 

 
	
  

 	
  

 
	
  

 	
 1 The Plant’s 10 kV bus
 and its corresponding primary and secondary equipment;

 
	
  

 	
  

 
	
  

 	
 2 The relay protection of
 the Power Plant’s No. 1 and No. 2 units, No. 1 main transformer (or the unit
 of generator and transformer) shall be the responsibility of the Power Plant
 (including in-service and off-service operation, adjustment and
 calculation), and Kunming Local Dispatch shall be responsible for
 dispatching and management;

 
	
  

 	
  

 
	
  

 	
 3 Plant’s hydraulic works
 and water monitoring and reporting system. 

 
	
  

 	
  

 
	
  

 	
 (4) The Power Plant shall
 be responsible for the electric equipment used for its own needs

 
	
  

 	
  

 
	
  

 	
 The division of dispatch
 in respect of equipment for relay protection, communication, automation and
 safe and automatic devices shall be, in principle, the same as that of the
 scope of dispatch of the primary equipment.

 

 38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]