MOA Signed Formally for Kunlong Hydropower Project between Our Group and the Government of the Union of Myanmar
On February 24, 2010, our Group signed the Memorandum of Agreement for the Development, Operation and Transfer of Upper Thanlwin (Kunlong) Hydropower Project (“MOA”) formally with the Ministry of Electric Power No.1, Union of Myanmar. The signing ceremony was held in the auditorium of the Ministry of Electric Power No.1, Union of Myanmar. The site was solemn and grand. This is a project with the largest amount of investment cooperated between the government of the Union of Myanmar and a Chinese private enterprise.
Both China and Myanmar attached high importance to the signing ceremony. Mr. Ye Dabo, Ambassador, and Mr. Jin Honggen, Commercial Counselor, and Mr, Li Minghui, First Secretary of Chinese Embassy in Myanmar Union of Myanmar, among others, attended the signing ceremony. 50-plus people including Mr. Zaw Min, Minister and U Myoe Myint, Vice Minister of Electric Power No.1, Mr. Hla Tun, Minister of Finance and Tax, Mr. U Aye Maung, Attorney General of Ministry of Justice, Mr. U Win Myint, Vice Minister of Electric Power No.2, and officials from the Ministry of Planning & Development and other relevant ministries and commissions of the Union of Myanmar participated in the signing ceremony. Our Group dispatched a delegation led by Mr. Li Hejun, Chairman of the Board of Directors of the Group, and consisting of Vice Chairman Shi Guosong, Assistant President Zhu Junfeng, and relevant personnel from the Board Chairman’s Office, the Development Management Department of the Power Generation Group, the Group’s representative office in Myanmar, and the Brand Management Department to take part in the signing ceremony. Relevant persons including Mr. Luo Bingzhong, managing director of Asia World Corporation – our Group’s partner in Myanmar, and Mr. Cai Jie, General Manager of subordinate Xinquan Company were present at the ceremony. People from China and Myanmar got together happily, and witnessed this exciting historic moment together.
Minister Zaw Min and Chairman Li delivered speech at the ceremony successively. They fully affirmed the efforts previously made by both parties, and wished smooth cooperation in the future between the parties, and the Kunlong Hydropower Project would generate power as early as possible to benefit the people of two countries as an up-market project. In the presence of Minister Zaw Min, Chairman Li and U Kyee Soe, Chief of Department of Hydropower Planning, Ministry of Electric Power No.1 signed and interchanged the MOA texts for Kunlong Project.
All people in the Group who took part in the work of Kunlong Hydropower Project know the previous hardships and difficulties very well. Since the early 2007 when the project planning began to now when the MOA is signed formally, many people in the group, from leaders to hydropower experts, and employees taking charge of the project, have made arduous efforts. Especially in July 2008 when the Ministry of Electric Power No.1, Union of Myanmar approved the Kunlong hydropower first stage development plan for the segment beyond Nanning River junction of the upper Thanlwin, the Group began to negotiate with the Myanmar party with regard to the MOA of Kunlong project. The Kunlong Project MOA negotiation team was established, consisting of relevant persons from the Development Management Department, Legal Affairs Department and the Group’s Representative Office in Myanmar. Vice Chairman Shi Guosong took charge of, Assistant President Zhu Junfeng assisted, and Vice Chief Engineer Zhu Errong gave technical instruction to the negotiation team. US United Power Inc. and Hanergy Carbon Assets Management Company also transferred first-class translators to join the negotiation team. During the period of one year and three months, the negotiation team and the Ministry of Electric Power No.1, Myanmar experienced rounds of fortitudinous seesaw game. Initially, each party insisted on its own standpoint, and neither party would like to yield with regard to the terms and conditions. Then, they exchanged ideas through talks, telephone, fax, email, and so on. They discussed and explained repeatedly. After estimating the financial figures in more than 200 plans, finally in October 2009 the parties agreed on the MOA terms and conditions and completed the initial signature. Upon approval by the cabinet council of Myanmar, the parties signed the MOA for Kunlong Project formally. This is not only the result of efforts made by the negotiation team, but also the crystallization of teamwork in the Group.
The signature of MOA for Kunlong Hydropower Project is a symbol that our Group has been formally awarded the concession for the project. For the Group, this is another million-KW hydropower project following Jin’anqiao Hydropower Station. It is of great significance for ensuring the sustainable development of our “one foundation” industry. This is also a major breakthrough made in the field of hydropower resource investment in Myanmar by Chinese private enterprises through responding to the country’s call to “go out”. It is a new progress made by China and Myanmar in their cooperation of energy. As expressed by Chairman Li at the signing ceremony: Hanergy Holding Group will surely create Kunlong Project into an up-market one！