Tottori Prefectural Oshika Daini Power Station Commences Operation: PFI Project (Concession Method) to Redevelop and Operate a Publicly-Run Hydropower Station

The special purpose company M&C Tottori Hydropower Co., Ltd. (the "SPC"), established by Chubu Electric Power Co., Inc. ("Chubu Electric Power"), Mibugawa Electric Power Co., Inc., Chubu Co. Ltd., and Miho Technos Co., Ltd. (the "Four Partners"), has completed its redevelopment of and today started to operate the Tottori-Prefecture-owned Oshika Daini Power Station.

The Four Partners established the SPC in May 2020, after having been selected as the operator of a redevelopment and administration project for Tottori Prefecture's hydropower stations (the "Project"). The prefecture had been seeking operators for the Project as Japan's first concession-method (Note 1) PFI endeavor for hydropower facilities (Note 2). Subsequently, the SPC signed a specified business agreement with Tottori Prefecture in July 2020 and launched the Project in September 2020. (Previously announced on August 27, 2020)

The Project involves redeveloping Tottori's four hydropower stations that have been operating for 50 or more years, and transferring the operation rights of the plants to the SPC for 20 years. Oshika Daini Power Station is the second site to go online following Tsukuyone Hydropower Station, which started to operate in September 2020. The SPC will continue to redevelop the other two power plants to start their operation in 2024.

Based on the belief that coexisting with the local community is vital for hydropower operations, the Four Partners will run the Project safely, securely, and stably through the SPC to contribute to the growth of the local economy and achievement of a decarbonized society.

(Note 1) A method in which a public entity transfers the right to operate a facility to a private business, while maintaining ownership of the facility

(Note 2) A public works project approach that uses private-sector funds as well as capabilities as to management and technology (know-how) to design, construct, repair, update, maintain and manage, and operate public facilities

[Overview of four hydro power stations run by Tottori Prefecture]

[Overview of the special purpose company]

[Corporate profiles]

1 Chubu Electric Power Co.,Inc.
Headquarters:1 Higashi-shincho, Higashi-ku, Nagoya, Aichi, Japan
Established:May, 1951
Main Business:Renewable energy business,nuclear power business, global business, community support infrastructure business, etc.
Representative:Kingo Hayashi, President and Director

2 Mibugawa Electric Power Co., Inc. (Marubeni Group)
Headquarters:1-4-2 Otemachi, Chiyoda-ku, Tokyo
Established:August, 1960
Main Business:Electric power generation and wholesale / distribution of electricity
Representative:Tsuyoshi Tomita, President and Representative Director

3 Chubu Co. Ltd.
Headquarters:1061-6 Otsuka, Kotoura-cho, Tohaku-gun, Tottori
Established:December, 1967
Main Business:Turfing, operation and management of parks and construction
Representative:President Masao Koshiba

4 Miho Technos Co., Ltd.
Headquarters:25 Showa-cho, Yonago-shi, Tottori
Established:July, 1958
Main Business:Construction, surveying, planning, design, supervising and consultation for civil-engineering projects; Sales, installation and other handling of solar, wind and other natural energy-powered equipment
Representative:President Kenichi Nozu

[Photo of Oshika Daini Power Station]