China Holdings has executed a Development and Construction Agreement for the exclusive right to develop and construct a 50MW biomass-powered generation plant in the Chinese province of Hunan. The contract has been lodged through its subsiduary China Power, Inc with the local Huaxian Government.

Huaxian has also agreed to grant China Power the land rights for up to 133,400 square metres of land to develop the biomass energy power plant. Under the terms of the agreement the Huaxian Government has guaranteed financing for China Power of up to 65% of the 580 million Yuan needed at a preferred interest rate. They have also agreed to purchase 100% of the power generated by the Biomass Energy Power Generation Plant at a purchase price that will fall between 0.60 and 0.65 Yuan.

For their part, China Power has committed to invest up to $81.5 million twoards the development of the power plant.

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