Jaks Resources plans to buy solar power project in Vietnam

14 May 2019 / 14:16 H.

PETALING JAYA: Jaks Resources Bhd proposes to acquire the Lig-Quang Tri solar power project in Vietnam from LICOGI 13.

The group told Bursa Malaysia that it had entered into a memorandum of understanding (MoU) with LICOGI 13, a joint stock company incorporated in Vietnam for the purchase.

It also allows both parties to enter into joint venture arrangements or sale and purchase transactions for future solar and wind energy projects in Vietnam.

LQT Solar Power Plant, invested by LICOGI 13 will come into operation at the end of June 2019 in the central province of Quang Tri, Vietnam. The plant has a total capacity of 49.5 megawatts and average generation of 67.960 megawatts per year.

The power purchase agreement for the LQT Solar Power Plant was executed on Oct 23, 2018 and this project has a life time of 50 years. Presently the plant is completed and awaiting connection to the national grid.

Jaks said the execution of the MoU is to allow both parties to negotiate the terms of the sale and purchase agreement of the LQT solar power project.

In the event that the sale and purchase agreement is not entered into between both parties on or before the June 30, 2019, the MoU will lapse.

Jaks will have the right within 14 days of signing the MoU to appoint advisors and agents to conduct such review of the assets, liabilities, operations and affairs of the project.

At the midday break, its shares gained 1 sen or 1.4% to 75 sen on 4.19 million shares done.

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