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Exhibit 10.4
Jiangsu Huangli Thermal Electric Investment Management Co.,
Ltd.
Construction Contract for Thermal Electric
Plant
THIS
CONTRACT FOR CONSTRUCTION AND RELATED SERVICES (the
“Contract”) is entered into by and between JIANGSU
HUANGLI PAPER INDUSTRY CO., LTD. (“Party A”) and
WUHAN GENERATING EQUIPMENT CO., LTD. (“Party B”)
on this 8
th day
of July, 2007, pursuant to the relevant rules and regulations of
The People’s Republic of China’s Law on Contracts and
the State Council’s Regulations on Building and Installation
Contracts. Party A and Party B are referred to herein collectively
as the “Parties” and individually as a
“Party.”
W
I T N E S S E T H:
WHEREAS,
Party A has agreed to purchase certain construction and
related services from Party B, and Party B has agreed to
provide such construction and related services to Party A;
and
WHEREAS,
the Parties wish to set forth herein their agreements and
understandings regarding such purchase and sale of such
construction and related services;
NOW
THEREFORE, for and in consideration of the mutual covenants of
the Parties set forth herein and other valuable consideration,
the receipt and sufficiency of which is hereby acknowledged,
the Parties agree as follows:
Article
1
General
Provisions
1.1
Project
Approval. Pursuant to the Jiangsu Development and Planning
Committee’s
Approval
Reply on the Project of Jiangsu Fasten Thermal Electric
Plant (Su
Ji Jichu Fa (2003) No. 1177) and Notice No. (2003) 38 regarding
this
Approval Reply ,
a thermal electric plant shall be established in Huangli, Jiangsu
(the “Contracted Project”).
1.2
Project
Name. The Contracted Project shall be named the Jiangsu
Huangli Thermal Electric Plant.
1.3
Project
Location. The Contracted Project shall be located in
Chengchang Centralized Industrial Park, Huangtu Town,
Jiangyin, Jiangsu.
1.4
Project
Construction. Party B shall be responsible for the
construction of the Contracted Project.
Article
2
Scope
and Specifications of the Contracted Project
2.1
Scope
of the Project. The scope of the Contracted Project shall
include the feasibility research, design and civil
engineering, purchase of materials, construction and
installation, road building, completion of the Contracted
Project so that it is a synchronous generating system,
delivery and acceptance upon examination by Party A of the
Contracted Project, and passing a seventy-two (72) hour pilot
run.
2.2
Specifications
of the Project. The specifications of the Contracted Project
shall include a thermal power plant consisting of two (2)
NC-35/5.3 boiler furnaces; two (2) UC-75/5.3 boiler furnaces;
one (1) set of C12-4.9/0.981 and QF-15-2 extraction condensing
turbine generator group (the “First Generator
Group”); one (1) set of B6-4.9/0.981 and QF-7.5-2
backpressure turbine generator group (the “Second
Generator Group”); and all ancillary civil projects,
including, without limitation, a steam turbine room, a boiler
furnace room, a water carburetor room, a dry coal warehouse, a
master-control room, chimney, trestle bridge, water
circulating cooling tower, platform bridge, and slag stack
yard. Each system of the Contracted Project shall comply with
the Examination and Acceptance Regulations for Thermal Power
Generation.
Article
3
Construction
Period and Postponement
3.1
Construction
Period. Party B shall complete, deliver for examination and
acceptance by Party A, and put into production the First
Generator Group on or before December 31, 2007. Party B shall
complete, deliver for examination and acceptance by Party A,
and put into production the Second Generator Group on or
before June 30, 2008.
3.2
Postponement
to the Construction Period. The construction periods set forth
in
Section 3.1 shall
be postponed in the event of any shutdown, delay in work due to
poor organization, or for any of the following
circumstances:
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a.)
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A
significant loss caused by a natural or man-made
disaster.
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b.)
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Party
A fails to make payment to Party B within ten (10) days after the
time limit set forth under
Section 7.1 .
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c.)
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A
major amendment to state policy.
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Article
4
Responsibilities
of Both Parties
4.1
Party
A shall be responsible for the following:
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a.)
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Obtaining
the right to use the land, the lease for the Contracted Project and
for the provisional facilities of the Contracted Project, the
building licenses, and the construction permit for the Contracted
Project.
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b.)
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Obtaining
the electricity, gas, and water for the worksite.
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c.)
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Providing
approval documentation, surveying documentation, and hydrographic
and meteorological data for the Contracted Project.
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d.)
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Making
timely payments to Party B as set forth in this Contract and
organizing examination and acceptance of the Contracted Project
upon its completion by Party B.
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e.)
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Designating
a representative to manage any problem that Party A shall be liable
for as well as other matters.
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