Andatee China Marine Fuel Services Corp | 2013 | FY | 3


Note 8 – Construction-in-Progress
 
The construction projects in progress are to build facilities to expand production capacity in Lianyungang, Donggang, Rongcheng and Wujiang areas. Construction costs mainly represent construction expenditures and equipment costs not yet in service. The Company completed three construction projects totaling $11.7 million (RMB 72.15 million) by the end of May 2013 after these projects passed the inspection conducted by local the government agencies. In December 31, 2013, the Company started to construct a new chemical and fuel oil blending project in Lianyungang city after the Company obtained a land use right in October 2013. Total estimated contract price for this new project is approximately $41 million (or RMB 250 million). The Company prepaid $17 million (equivalent to RMB 100 million) to a contractor to start the project in December 2013.
 
The Company’s construction-in-progress is as follows:
 
 
December 31,
2013
 
December 31,
2012
 
Berth and berth improvements
 
$
698,812
 
$
529,556
 
Oil blending and storage tanks
 
 
-
 
 
12,330,639
 
Oil blending and chemical project at Lianyungang
 
 
16,418,320
 
 
-
 
Capitalized interest
 
 
664,030
 
 
-
 
Total
 
$
17,781,162
 
$
12,860,195
 

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