JAKS inks MoU to acquire solar power plant in Vietnam

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KUALA LUMPUR (May 14): JAKS Resources Bhd has inked a memorandum of understanding (MoU) with Vietnam-based LICOGI 13 to acquire a power plant project as well as for future joint ventures for other solar and wind energy projects.

In a filing to the stock exchange today, JAKS said the MoU was to acquire the Lig-Quang Tri Solar Power Project (LQT) that will come into operation at the end of June 2019 in the central province of Quang Tri, Vietnam.

It said the plant has a total capacity of 49.5 megawatts and average generation of 67.960 megawatts per year.

JAKS said the power purchase agreement for LQT was executed on Oct 23, 2018 and that this project has a life time of 50 years.

"Presently the plant is completed and awaiting connection to the national grid," it said.

The firm added that in the event that the sale and purchase agreement is not entered into between both parties on or before June 30, 2019 (or such later date as both parties may mutually agree), the MoU shall lapse.

However, JAKS did not disclose the acquisition price but said the consideration for the solar power project will be subject to negotiations between the parties.

At the midday break today, JAKS was up 1.35% or 1 sen at 75 sen with 4.19 million shares traded.