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200MW solar farm set for Kampong Speu

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Men install solar panels at their home in Preah Sihanouk province. Heng Chivoan

200MW solar farm set for Kampong Speu

A 200MW solar project backed by a $200 million investment from two large companies will be built in Aoral Eco-City, a joint statement said on April 26.

Real estate developer Hong Lai Huat Group Ltd and China Machinery Engineering Corp (CMEC) have signed a non-legally binding memorandum of understanding (MoU) to form a special purpose vehicle (SPV) and work together for at least 20 years, with an option to renew the deal for an additional 20-year period, it said.

This project includes the construction of Cambodia's largest solar farm, according to Hong Lai Huat Group general manager and executive director Ong Jia Jing.

Aoral Eco-City is a “mega integrated agriculture eco-city” project currently in development by Hong Lai Huat in Kampong Speu province's Oral district.

The companies estimate that at total investment of around $200 million would be required to build such a large-scale solar park in the eco-city.

Under the MoU, CMEC will provide one-stop, complete solar-plant solutions for the project, including preliminary planning, engineering, procurement and construction (EPC), financing, operation and maintenance.

After completion, the solar farm will sell power to state-owned utility Electricite du Cambodge (EdC), and Hong Lai Huat will be granted the first right to purchase electricity at the same price as EdC.

Hong Lai Huat and CMEC will share the revenue from the sale of electricity under the power purchase agreement (PPA), contingent on the signing of a legally-binding deal.

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