Real estate developer Hong Lai Huat Group Ltd and China Machinery Engineering Corp ( CMEC) have teamed up to construct a 200-MW solar project at the Aoral Eco-City in Cambodia.
A non-binding Memorandum of Understanding (MoU) has been signed by both the companies to create a special purpose vehicle (SPV) and collaborate for at least 20 years, with a 20-year renewal option. This project will lead to the construction of Cambodia’s largest solar power plant.
Aoral Eco-City is considered a “mega integrated agriculture eco-city” which is being developed by Hong Lai Huat in the Kingdom of Cambodia. The solar park is estimated to require a total investment of about USD 200 million (EUR 165.6m). Subject to the signing of a binding deal, the two project partners will share the revenue generated under the power purchase agreement (PPA).
As far as CMEC’s responsibilities are considered, it 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.