President of HEI Mr. Guo Yu and Chairman of the Board of ACWA Power Mr. Mohammed A. Abunayyan signed the Strategic Cooperation Agreement

On December 1st, 2015, President of HEI Mr. Guo Yu and Chairman of the Board of ACWA Power Mr. Mohammed A. Abunayyan signed a Strategic Cooperation Agreement at Harbin Shangri La Hotel, based on which, both parties will jointly develop the electricity markets of the Middle East, Asia and Africa. They also signed a Joint Venture Agreement for the first coal-fired power plant, which they will jointly invest in in the Middle East – the Dubai Hassyan 1200MW Clean Coal-fired Power Plant. At the signing ceremony, HEI and ACWA Power, together with the Industrial and Commercial Bank of China and the Bank of China, signed the Loan Financing Intention Agreement for the Dubai Hassyan Project. The contracting of this project is the first time that a Chinese enterprise has stepped into the Middle East electricity market in terms of investment and financing and EPC mode, and it has significant strategic significance for speeding up Chinese enterprises in their devotion to the “One Belt One Road” Policy.

Before the signing ceremony, Secretary of the Party Committee of Heilongjiang Province Mr. Wang Xiankui met with the General Manager of China’s Silk Road Fund Mr. Wang Yanzhi and Chairman of the Board of ACWA Power Mr. Mohammed A. Abunayyan, who all attended the signing ceremony.

Vice Governor of Heilongjiang Province Mr. Hu Yafeng, President of Harbin Electric Co., Ltd. Mr. Wu Weizhang, Managing Director and CEO of DEWA Mr. Saeed Al Tayer, President and CEO of ACWA Power Mr. Paddy Padmanathan, Deputy General Manager of the Special Financing Department of ICBC Head Office Ms. Shen Min, Governor of ICBC’s Heilongjiang Branch Mr. Zhang Xiaoxin, Deputy General Manager of the Financial Headquarters of the Bank of China Head Office Ms. Cheng Huijuan, Governor of Bank of China Heilongjiang Branch Mr. Huang Zhigang and others attended the signing ceremony.

ACWA Power is a company jointly invested in by the Saudi Government Fund and private investors, and is a leading developer of Saudi electricity and sea water desalination projects. The projects invested in, developed, owned and operated by ACWA Power have spread to over 12 countries in the Middle East, Northern Africa, Southern Africa and Southeast Asia. This Strategic Cooperation Agreement signed between HEI and ACWA Power aims at carrying out a collaboration in three major fields including investment, EPC and project financing.

By forming a consortium, HEI and ACWA Power were awarded the contract of Dubai Hassyan 2x600MW Clean Coal Power Plant Phase I by DEWA and successfully won the development rights to the project on October 13, 2015. Based on the “Dubai Integrated Energy Strategy 2030” (DIES 2030) released in 2010, and in order to satisfy the electricity demand of the Dubai World Expo in 2020, DEWA planned this project to build a coal-fired power plant. The Dubai Hassyan Clean Coal Power Plant Project is divided into three phases with an installed capacity of 1200MW for each phase. The first unit of Phase I is planned to enter into commercial operation in March 2020, and then in March 2021 the entire plant will be put into operation. The Hassyan 2X600MW Clean Coal Power Plant Project Phase I will adopt the BOO model.

The signing of this cooperation agreement signifies that the investment sector, one of HEI’s “four major business sectors”, has achieved a breakthrough. With the implementation of this project, HEI will successfully achieve the extension and transboundary of its business scope from EPC contractor to investor. This project also signifies HEI’s successful landing in the Middle East’s high-end market, and establishes a solid foundation for HEI’s future development and the exploration of the aftermarket.

Secretary of Party Committee of Heilongjiang Province Mr. Wang Xiankui (fourth from the right) met with General Manager of China’s Silk Road Fund Mr. Wang Yanzhi (fourth form the left), President of Harbin Electric Co., Ltd. Mr. Wu Weizhang (third from the left), President of HEI Mr. Guo Yu (second from the left)

Secretary of Party Committee of Heilongjiang Province Mr. Wang Xiankui (fourth from the right) met with Chairman of the Board of ACWA Power Mr. Mohammed A. Abunayyan (third from the left)

Vice Governor of Heilongjiang Province Mr. Hu Yafeng addressing the ceremony

President of Harbin Electric Co., Ltd. Mr. Wu Weizhang addressing the ceremony

Managing Director and CEO of DEWA Mr. Saeed Al Tayer addressing the ceremony

Chairman of the Board of ACWA Power Mr. Mohammed A. Abunayyan addressing the ceremony