Pestech buys solar farm project in Cambodia

Pestech International Bhd is expanding its power generation business in Cambodia with the proposed acquisition of a solar farm project.

The company, in a filing with Bursa Malaysia, said a subsidiary Astoria Solar Farm Sdn Bhd (ASF) has agreed to acquire a 94% stake in Green Sustainable Ventures (Cambodia) Co Ltd (GSV) from two individuals for US$4mil (RM16.3mil).

The proposed acquisition, Pestech said would give the company the “super-majoriy rights” over the development of a 20-year concession of a 20MW large-scale solar farm project in Bavet City, Cambodia.

The project developer, GSV has obtained a long-term power purchase agreement (PPA) with Electricité du Cambodge (EDC) under the built own and operate model with a power purchase price of US$0.076 per kWh.“Upon the proposed acquisition of 94% in GSV, GSV shall be the developer and undertake the project management of all EPC functions, ” Pestech said.

“ASF, being the super majority shareholder in GSV, may determine the appointment of EPC and operations and maintenance (O&M) company to undertake the EPC scope for the entire Project and O&M for the duration of
the PPA.

Pestech expects the proposed acquisition to contribute to the profitability of the group throughout the duration of the PPA.

Souce: The Star