A-Power Energy Generation Systems, Ltd.(fka APWR)

[JoeBlack]

A-Power Enters into an Agreement to Expand an Existing Distributed Power Generation Contract from $175 Million to $280 Million
Monday March 17, 8:00 am ET


SHENYANG, China--(BUSINESS WIRE)--A-Power Energy Generation Systems, Ltd. (NASDAQ: APWR - News) (NASDAQ: APWRW - News) (NASDAQ: APWRU - News) ("A-Power"), announced today that it has entered into an agreement with Inner Mongolia Wulahot Hengwang Heat & Electricity Generation Co., Ltd. (“Hengwang”) to increase the size of its existing contract worth $175 million by approximately $105 million to $280 million.
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The initial contract entered into between A-Power and Hengwang was for the construction of a 300 MW stand-alone distributed power generation facility for a new development zone located in Inner Mongolia. As a result of the decision by the Inner Mongolian government authorities to enlarge the size of the development zone area, Hengwang is increasing the size of the planned distributed power generation facility from 300MW to 400MW. The construction of this new facility is expected to be completed in January 2010.

Mr. Jinxiang Lu, A-Power’s Chairman and CEO, commented, “The Hengwang project is a significant project for A-Power and is the first of many large distributed power generation projects we expect to receive in Inner Mongolia and other rural areas of China. The PRC government continues to promote new development zones in these areas, most of which are typically far removed from the national grid. By producing power at a local level, our distributed power generation systems eliminate the need for the state-owned utilities to string new power lines over hundreds of miles to reach these new developments. In addition, our systems can efficiently provide all of the necessary heat and power required by these new developments and eliminate the increased electricity demand burden that would otherwise be put on the national grid.”

With the increased value of this contract, A-Power’s backlog has increased to $566 million

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