China Hydroelectric Corporation Receives RMB 3 billion ($440 million) Loan Framework Agreement From the Bank of China

NEW YORK, Feb. 12 /PRNewswire-Asia-FirstCall/ -- China Hydroelectric Corporation (NYSE: CHC, CHC-WS) ("China Hydroelectric" or the "Company"), a consolidator, developer and operator of small hydroelectric power projects in the People's Republic of China ("PRC"), today announced that it has received a Loan Framework Agreement (the "Framework Agreement") from the Bank of China's Fujian Branch (the "Bank of China") pursuant to which the Bank of China has approved the Company's wholly owned finance subsidiary, Fujian Huabang Hydroelectricity Investment Co., as a borrower of up to an aggregate of RMB 3 billion ($440million).

Under the terms of the Framework Agreement, the Bank of China has authorized loans to Fujian Huabang Hydroelectricity Investment Co. of up to RMB 3 billion ($440million) in the aggregate for the acquisition of hydroelectric projects. Each acquisition loan will be subject to individual approval by the Bank of China and to definitive documentation (which will include the term and interest rate thereof). The Framework Agreement represents the Bank of China's form of internal commitment for the loan facility.

"Given reports that certain sectors in China may lack for debt financing and coming so soon following China's announcement that it will be limiting access to debt financing, we are especially pleased to enter into this Framework Agreement with the Bank of China," said John D. Kuhns, Chairman & CEO of China Hydroelectric Corporation. "We believe that, particularly in that context, the Framework Agreement is an extremely positive development for our company and evidences the Bank of China's ongoing and increased willingness to support China Hydroelectric's plans to implement its strategy of acquiring small hydroelectric projects through a significant internal commitment of debt financing. Together with our cash on hand and the assumption of debt in acquired projects, we expect the financing covered by the Framework Agreement to enable us to expand our portfolio of operating and development projects on a reasonable pace during 2010."

About China Hydroelectric Corporation

China Hydroelectric Corporation ("CHC" or the "Company") is a consolidator, developer and operator of small hydroelectric power projects in the People's Republic of China. Led by an international management team, the Company's primary business is to identify and evaluate acquisition and development opportunities and acquire, and in some cases construct, small hydroelectric power plants in China. China produces approximately 22% of its total energy from hydroelectric energy. The Company currently owns twelve operating hydropower projects in China with total installed capacity of 377 MW. These projects are located in four provinces: Zhejiang, Fujian, Yunnan and Sichuan. In addition, CHC recently expanded operations through the acquisition, pending government approval, of development rights to a 1,000 MW pumped storage hydropower plant in Henan.

For further information about China Hydroelectric Corporation, please visit the Company's website at http://www.chinahydroelectric.com .

Cautionary Note Regarding Forward-looking Statements:

Statements contained herein that address operating results, performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. The forward-looking statements include, among other things, statements relating to our business strategies and plan of operations, our ability to acquire hydroelectric assets, our capital expenditure and funding plans, our operations and business prospects, projects under development, construction or planning and the regulatory environment. The forward-looking statements are based on our current expectations and involve a number of risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: supply and demand changes in the electric markets, changes in electricity tariffs, hydrological conditions, our relationship with and other conditions affecting the power grids we service, our production and transmission capabilities, availability of sufficient and reliable transmission resources, our plans and objectives for future operations and expansion or consolidation, interest rate and exchange rate changes, the effectiveness of our cost-control measures, our liquidity and financial condition, environmental laws and changes in political, economic, legal and social conditions in China, and other factors affecting our operations that are set forth in our Prospectus dated January 25, 2010 and filed with the Securities and Exchange Commission (the "SEC") and in our future filings with the SEC. Unless required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For more information, please contact:

    Company:

     Mary Fellows, EVP and Secretary
     China Hydroelectric Corporation
     Phone: +1-860-435-7000
     Email: [email protected]

    Investor Relations:

     Scott Powell
     HC International, Inc.
     Phone: +1-917-721-9480
     Email: [email protected]

SOURCE China Hydroelectric Corporation

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