Hong Lai Huat Group Ltd has signed a memorandum of understanding (MoU) with China Machinery Engineering Corp. (CMEC) for the development of a 200 MW solar photovoltaic facility in Aoral Eco-City in Cambodia.
The two companies have signed a non-binding agreement to create a special purpose vehicle (SPV) and collaborate for at least 20 years, with an optional 20-year extension. CMEC will provide one-stop, complete plant solutions for the solar project that includes preliminary planning, engineering, procurement and construction (EPC), financing, operation and maintenance.
Once the project enters operation, the energy produced from the plant will be sold to state-owned Electricite du Cambodge (EDC) while Hong Lai Huat will have the first right to purchase electricity at the same rate as EDC. Hong Lai Huat Group and EDC will share the revenue under the PPA upon closing the deal.
