On January 21, 2016 Shanghai Electric Group Company Limited and Egyptian Electricity Holding Company entered into a conditional EPC general contracting agreement regarding the Hamrawien coal-fired power plant projects in Egypt. According to this contract, the Company would construct a coal-fired power station for the Egyptian Company under EPC general contracting basis in two phases. Phase 1 contains four 660MW coal-fired power generation units and phase 2 contains two 1,000MW coal-fired power generation units.

The EPC contract price for Phase 1 with four 660MW coal-fired power generation units will not exceed USD 2,240,768,800 plus EGP 3,096,217,000 (for reference only, EGP 1.00 equals to approximately HKD 0.9898). The Company also intends to enter into an operation and maintenance service contract for a duration of five years with the Egyptian Company in relation to the aforementioned coal-fired power plants. This contract will come into effect when relevant conditions are fulfilled.

The parties will endeavor to jointly fulfill such conditions.