JAKS inks MoU to acquire solar power plant in Vietnam

This article first appeared in The Edge Financial Daily, on May 15, 2019.
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KUALA LUMPUR: JAKS Resources Bhd has inked a memorandum of understanding (MoU) with Vietnam-based Licogi 13 to acquire a power plant project, and for future joint ventures for other solar and wind energy projects.

In a filing with the stock exchange yesterday, 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 49.5mw and an average generation of 67.960mw per year.

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

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

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

However, JAKS did not disclose the power plant’s acquisition price, saying only that the consideration will be subjected to negotiations between the parties.

JAKS shares closed two sen or 2.7% higher for an intra-day high of 76 sen yesterday.