Sep 15, 2015

Signing of Concession Agreement

Don Sahong Power Company Ltd (???DSPC???) has on 15 September 2015 entered into a Concession Agreement with the Government of The Lao People???s Democratic Republic (???GOL???) whereby the GOL has granted on a build, operate and transfer basis, the concession rights to DSPC for the development of a 260MW hydropower project commonly referred to as the Don Sahong Hydropower Project to be located in the Hou Sahong Channel of the Mekong River, in Khong District, Champasak Province, Lao PDR (???the Project???).

The Project, which is a 260MW run-of-river hydropower project capable of generating about 2,000 GWh of electricity per year, is expected to achieve commercial operation in early 2020. The concession period shall end on the date occurring twenty-five (25) years after the commercial operation date. Electricity generated by the Project shall be sold to Electricit?? Du Laos (???EDL???) under a Power Purchase Agreement to be executed later.

The total Project cost is approximately US$500 million, which is expected to be funded by internally generated funds and long-term debt.