Far East Wind Power Corp. (OTCBB: FEWP) ("Far East" or the "Company") has entered into a binding Letter of Intent ("LOI") with Tianlanhengfeng Electrical Power Corporation of Hohhot, Inner Mongolia (the "Owner") in order to jointly develop and operate a wind farm project located in Wulatehou Qi, Inner Mongolia, China (the "Project").
The Mongolian project is planned for a total capacity of 300MW with a first phase of 50MW. Development plans call for a total of 6 phases at 50MW each. The Owner has obtained all the necessary approvals and permits from the local government and has commenced construction.
Far East and the owner plan to establish a Joint Venture (JV) in order to develop the first 50MW collectively and then aim to proceed with ongoing phases to completion. Details regarding the establishment of the JV will be announced upon completion of negotiations.
James Crane, Company CFO, stated, "We continue to take advantage of a niche marketplace in China. As previously stated, Chinese state-owned enterprises are developing wind farms but there is not enough development to meet China's stated renewable energy goals and many entrepreneurs in China are attempting to enter the wind farm marketplace. Consequently, we are diligently working with these entrepreneurs to provide them with capital and refine their business plans so that, as partners, we can develop assets that will generate substantial mutual cash flow for many years to come."
Far East's Chairman and CEO, Liu Xiaobu, states, "We are very confident regarding this project as it is a mature and highly promising prospect. We also look forward to a long-term relationship with Mr. He Jianxun, Chairman of Tianlanhengfeng Electrical Power Corporation, a well-known and respected leader in the industry who has shown great interest and enthusiasm for our proposals and has indicated the desire to sign a definitive agreement as soon as reasonably possible."
The Definitive Agreement shall contain customary representation and warranties, covenants and indemnification provisions. Details of the company's business, finances, appointments and agreements can be found as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database.