Hong Lai Huat Group Limited announced that the Group's HLH Agriculture (Cambodia) Co. Ltd. ("HLHA") has entered into a non-binding Memorandum of Understanding ("MoU") with China Machinery Engineering Corporation ("CMEC") for the development and operation of a 200MW solar farm at the Aoral Eco-City, the mega integrated agriculture eco-city project that Hong Lai Huat is developing in the Kingdom of Cambodia. The signing of the MoU will create a special purpose vehicle ("SPV") for which the Group and CMEC will undertake the proposed collaboration, which will be for a period of at least 20 years, with a right-of-renewal for a further 20 years. This is the second investment that the Group has secured, following the first joint cooperation agreement signed on 12 April 2021 with Joe Green to develop a Light-Weight Concrete Panel Manufacturing Plant in the Aoral Eco-City Construction Material Zone. Designated under the Aoral Eco-City Solar Energy Zone, the estimated investment value of the project is approximately $200 million (SGD 265.8 million). When completed, the proposed solar farm will supply electricity to the state-owned Electricite du Cambodge ("EDC") grid under a Power Purchase Agreement ("PPA") between the SPV and EDC. Revenue generated under the PPA will be shared between the Group and CMEC, details of which will be expressly defined in a binding agreement to follow in the next 90 days. The Group will also have first right to purchase electricity from the solar farm at the same rate at which it supplies EDC and this will ensure sustainable and stable electricity supply for investors that set up their base inside the Aoral Eco-City. With an established track record in the engineering industry spanning more than three decades, CMEC will provide one-stop, customised, complete solar plant solutions including preliminary planning, engineering, procurement, construction (EPC), financing, operation and maintenance of the plant. With a presence in 47 countries and regions in Asia, Africa, Europe and South America, CMEC's project contracting system is centred on electric power energy and covers transportation, telecommunications, waterworks, building materials and cement. A pioneer in China's machinery and electronic products industry, CMEC is a key supplier of high-end casting and forging products for top international corporations including General Electric, Caterpillar and Liebherr. CMEC was also the comprehensive power solutions supplier for the 2008 Beijing Olympic Games and the 2010 World Expo in Shanghai, amongst other notable projects.