Hong Lai Huat, CMEC to Co-Build 200-MW Solar Power Plant in Kampong Speu

• 27 April 2021
• Local News
• 5526 Views

Real estate developer Hong Lai Huat Group Ltd and China Machinery Engineering Corp (CMEC) have teamed up to invest in building a 200-MW solar power plant at the Aoral Eco-City in Kampong Speu province.

Both firms have already signed a non-binding MoU to create a special purpose vehicle (SPV) and collaborate for at least 20 years, with a 20-year renewal option, according to Renewables Now.

Hong Lai Huat Group General Manager and Executive Director Ong Jia Jing said that this project could become Cambodia’s largest solar power plant and would require a total investment of about US$200 million.

According to the agreement, 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 Electricite du Cambodge (EDC), while Hong Lai Huat will have the 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).

Hong Lai Huat’s subsidiary HLH Agriculture (Cambodia) last month obtained approval from the Cambodian government of Cambodia in principle to develop the Aoral Eco-City.

The city will be developed on HLH Agriculture’s land in Aoral District and will include an innovative mixed-use development, a state-of-the-art warehouse and logistic hub, as well as agriculture industry and community living concepts.

The project is expected to attract an estimated investment value of US$10 billion and will attract strategic local, Singapore, as well as international investors.

• Projects Development
• Energy and Environment