At 9:00 AM on October 12th, 2015, Chairman and President of Harbin Electric International (HEI) Mr. Guo Yu, Chairman of Hong Kong RED Capital Group Limited Mr. Wei Mingde and CEO of Medco Pacific Resources (Medco Resources for short) Mr. Sudjiono Timan signed an EPC and investment corporation framework agreement at the Shangri-La Hotel for the Indonesia 2x1000MW Coal-Fired Power Plant Project. Chairman of the Heilongjiang Province People’s Political Consultative Conference Mr. Du Yuxin, Vice Governor of Heilongjiang Province Mr. Hu Yafeng and Chairman and Secretary of the HE Corporation Party Committee Mr. Zou Lei attended the signing ceremony which was convened by the Secretary and Vice Chairman of the HEI Party Committee.

The Indonesia 2x1000MW Coal-Fired Power Plant is the first 1000MW-Class Coal-Fired Power Plant ECP project that HEI has successfully developed in the Indonesian market. This project will adopt the BOO investment model and HEI will act as the EPC Contractor thereof and take responsibility for the construction and operation of the plant. Medco Resources, the partner of this project, is a joint venture comprised of Indonesia’s Tanito Coal and Medco Group. Tanito Coal is one of Indonesia’s largest coal mining companies mainly engaging in the coal mining and sales business in Indonesia; the Medco Group is an Indonesian comprehensive energy company that focuses on the oil and gas exploration and production business while also running an energy business that involves electricity generation, coal mining, natural gas pipelines and drilling. Hong Kong RED is a global strategic investment group company established in the Hong Kong Special Administrative Region of the People’s Republic of China and registered with the Hong Kong Securities & Futures Commission that has strong ability in professional international asset management, risk control and financing.

Indonesia is a southeastern country with a significant lack of power electricity, a national electricity penetration of only 56% and an average annual growth in the demand for electricity of 10% to 15%. In recent years, Indonesia has become an important overseas market explored by Chinese power enterprises due to the rapid development of its economy. HEI has successfully built a Paiton 660MW Coal-fired Power Plant in Indonesia, and has achieved great performance and gained rich experience in undertaking EPC projects. At present, HEI is engaged in the Indonesia Benten 670MW Thermal Power Plant EPC Project. For this bilateral cooperation, HEI will incorporate its high performance equipment and superior quality engineering services to build a high standard power plant for Indonesia.

Representatives including Chairman of the Indonesian Chinese Chamber of Commerce and Chairman of Tanito Coal Mr. Ji Huiqi and Director of Tanito Coal Mr. Dasa Sutanitio attended the signing ceremony.