A-Power Energy (APWR) is announcing today that the Shenyang government is planning to invest a total of $44 million in the Shenyang Power Group which is a local industry alliance headed by A-Power (60% owner) to pursue large scale clean energy projects both within and outside of China.  As part of the investment, the government will appoint a local Shenyang bank and guaranty company to participate in the alliance. 

Details of the plan call for the city of Shenyang to seed $29.3 million through a government-owned asset management firm, which will give Shenyang a 20% stake in the alliance. The goverment will provide a subsidy of $14.7 million which will be paid in installments to Shenyang Power by 2011.

“We are very pleased that our city has made a firm commitment to supporting a power industry turnkey solution provider using Shenyang’s vast local resources,” said Mr. Jinxiang Lu, Chairman and CEO of A-Power and CEO of Shenyang Power. “With the government as our partner, Shenyang Power will be nicely positioned and well-equipped to create economies of scale by aggregating the potentials of the power industry, talented individuals as well as natural resources in the local area. We are excited and more confident to go after DG projects with large-scale, technologically advanced and managerially sophisticated electricity-generation systems both within China and overseas.”