Pestech signs MOU to undertake feasibility studies on solar-based projects in Cambodia

Pestech signs MOU to undertake feasibility studies on solar-based projects in Cambodia
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KUALA LUMPUR (Dec 14): Pestech International Bhd is collaborating with a Cambodian company to produce two feasibility studies pertaining to the construction or ownership of solar-based assets in Cambodia.

The group said its subsidary, Pestech (Cambodia) Plc, signed a memorandum of understanding (MOU) on the matter with the Cambodian company, Attwood Investment Group Co Ltd (AIG).

Under the MOU, the two companies would cooperate to complete the feasibility studies, and formulate the licence and approval strategy, while embedding the requirements of clean energy-generation.

One of the feasibility studies is for solar assets in the Pailin province of Cambodia, which would be used to provide electricity to MSP Development Company Ltd on a wholesale basis for on-sale to retail customers.

The second study is for a rooftop solar project within the Steung Hav Special Economic Zone, said Pestech in a filing with Bursa Malaysia.

“The objective of the feasibility studies is to offer both competitively-priced clean and conventional energy mix to customers, while providing potential investors [with] a market-based risk-adjusted financial return,” added Pestech.

The group said the MOU, which will remain in effect for eight months, will have no material effect on earnings, revenue and net assets for the financial year ending June 30, 2023, but that the projects are expected to contribute positively to future earnings.

At market close on Wednesday (Dec 14), Pestech’s share price remained unchanged at 35 sen, with the group’s market capitalisation at RM347.28 million.

S Kanagaraju