Jiangsu Wangting Natural Gas Based Power Generation Project (hereinafter referred to as the project), is located in northeast of Wangting Town, Xiangcheng District, Suzhou City of Jiangsu province. The project is to install and operate a GE S109FA generator of gas-steam combined cycle with total capacity of 780MW. The objective of the project is to generate and sell electricity to the East China Grid (ECG), which covers Shanghai, Zhejiang, Jiangsu, Anhui and Fujian provinces. Eastern China is a relatively developed region and has an increasing demand for power with its economic development. The project will mitigate the supply-deficit scenario of the grid at a certain extent. Moreover, it can improve the peak load regulating capability and optimize the power supply structure of the ECG.

The project started on 06 March 20031, approved by NDRC in October 2003 and then started construction on 28 April 2004. The project started full operation in February 2006.

As a less carbon-intensive and relatively cleaner energy, using natural gas for the proposed electricity generation project will help reduce GHG emissions versus the high-growth, coal-dominated business-as- usual scenario in ECG. It is expected that the project will achieve an ex-ante estimated average annual emission reduction of 1,065,397 tCO2, and 7,457,779 tCO2 over the first seven-year crediting period of the project.

The Project will not only supply electricity to the grid, bring much better electricity peak load balancing efficiency, but also contribute to sustainable development of the host country and local area by means of:

Supplying energy to the local grid and mitigate the base load ; Creating new employment opportunities directly at the project during construction and operation (at least more than 120 persons), and indirectly at the pipeline construction and management of gas flow to the project;

Reducing greenhouse gas emissions compared with the business-as-usual scenario where ECG is the most thermal power generation developed area and in the most population centered area; Reducing other pollutants such as SO2 and NOx emissions, compared with the power generation in business-as-usual scenario;

Increasing local revenue and taxable income.