Coro Energy gets more time for rooftop solar JV deal in Vietnam
Solar array. Author: h080.
Southeast Asia-focused company Coro Energy Plc (LON:CORO) has secured more time to finalise a rooftop solar joint venture (JV) deal in Vietnam as COVID-19 restrictions have hampered the process.
In July, the company announced plans to acquire a stake of 85% in a portfolio of commercial and industrial (C&I) rooftop solar projects in Vietnam with a combined capacity of 150 MW. The company signed at the time a binding Heads of Terms with the owner of the portfolio, Vinh Phuc Energy JSC (VPE), to jointly develop it. The exclusivity period under the contract ends today so the parties have agreed to extend it until October 31.
Coro Energy said measures to contain the spread of the coronavirus have impacted its ability to formally lodge papers with the local government. It expects to be able to reach a definitive JV agreement by the end of the month.
Under the planned deal, VPE will transfer the 150-MW portfolio to a joint company -- Coro Renewables Vietnam -- in exchange for a 15% carried interest. It will provide engineering, procurement and construction (EPC) services at market benchmarked levels. Coro will fund the JV for its 85% equity stake.
It was announced in July that the projects in the portfolio, once completed, would operate under long-term "take or pay" power purchase agreements (PPAs) with “creditworthy industrial customers”.