Real estate developer Hong Lai Huat Group Ltd (SGX:CTO) and China Machinery Engineering Corp (HKG:1829), or CMEC, have teamed up to realise a 200-MW solar project at the Aoral Eco-City in Cambodia.
Hong Lai Huat and CMEC have signed a non-binding Memorandum of Understanding (MoU) to create a special purpose vehicle (SPV) and collaborate for at least 20 years, with a 20-year renewal option. Their project will result in the construction of Cambodia’s largest solar power plant, according to Ong Jia Jing, Hong Lai Huat Group’s general manager and executive director.
Aoral Eco-City is a “mega integrated agriculture eco-city” project being developed by Hong Lai Huat in the Kingdom of Cambodia. Building a solar park of that size in the eco-city will require a total investment of about USD 200 million (EUR 165.6m), the pair estimates.
CMEC will deliver one-stop, complete solar plant solutions for the project, including preliminary planning, engineering, procurement and construction (EPC), financing, operation and maintenance. Upon completion, the solar park will sell power to state-owned Electricite du Cambodge (EDC), while Hong Lai Huat will have first right to purchase electricity at the same rate as EDC.
Subject to the signing of a binding deal, the two project partners will share the revenue generated under the power purchase agreement (PPA).
(USD 1.0 = EUR 0.828)
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