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Taoyuan HPP, located upstream of Taoyuan County Town of Hunan Province, is planned to have a NPL of 39.5m, an installed capacity of 128MW, an annual energy output of 595.44GWh, a total static investment of 1.84636 billion yuan, and a total construction period of 51 months. On May 18, 2009, the Letter of Intent for Development of Taoyuan Hydropower Project was signed between HydroChina ZhongNan Engineering Corporation and Taoyuan County People’s Government in Hunan Changde Industry Transfer Investment Promotion (Shenzhen) and Project Signing Ceremony sponsored by Hunan Provincial People’s Government and hosted by Changde City People’s Government and Hunan Provincial Commence Department. On June 26, 2009, the Promoter (Shareholder) Agreement for HydroChina Taoyuan Development Co., Ltd. was signed between HydroChina ZhongNan Engineering Corporation and HydroChina Investment Co., Ltd. On August 16, 2009, HydroChina Taoyuan Development Co., Ltd. was officially incorporated at Taoyuan County of Hunan Province, with a registered capital of 500 million yuan and an initial capital of 100 million yuan.