1# and 2# units of Indonesia CILACAP 2X300MW Coal-fired Power Plant Project which was undertaken by our company passed the relevant performance tests under the EPC Contract on April 18, 2006 and September 11, 2006 respectively.

Vice President Caoguang of our company and President of Indonesia S2P Company Achmad Ilham Rasyid each signed on the Taking Over Certificate on October 5, 2006.

The signing and obtaining of the Taking Over Certificates for 1# and 2# units as well as for the whole plant utilities signifies the fulfillment of the EPC work of this project by Chengda.

So far, 1# and 2# units have generated aggregated power of 929,270,000 KWH and 231,620,000 KWH respectively (net output after deducting the plant-used electricity). And 1# and 2# units as well as the utilities of the whole plant have been operating properly.

Having such a big project completed in such a short period and with high quality, Chengda would like to give thanks to its partners from home and abroad (like South-west Electric Power Design Institute, main equipment supplier, Indonesian partners and national construction company), who have rendered big support and cooperated well with Chengda. And Chengda has separately sent its heart-felt gratitude to each party involved.

!# and 2# units Taking over Certificate enclosed