SINGAPORE, 1 OCTOBER 2015 – SGX Catalist-listed SBI Offshore Limited (“SBI Offshore” or the “Group”) announced today that its 51%-owned subsidiary, Graess Energy Pte Ltd (“Graess Energy”), through a collaboration between Gräss Solartechnik Schweiz SA (“GSS”) and China Machinery Engineering Corporation (“CMEC”), has received a letter of award for the sale of solar power in the Maldives.
GSS, a related company of Graess Energy, will design, engineer and build the solar photovoltaic (“PV”) system (“PV System”) to be installed on the rooftops of government buildings in the Greater Male region. Graess Energy will cooperate with CMEC in the form of a special purpose company (“SPC”) to own, operate and sell solar power to State Electric Company Ltd (“STELCO”), a company wholly-owned by the Government of Maldives.
CMEC is a major international EPC (engineering, procurement and construction) company in China specializing in infrastructure, agriculture and power projects. CMEC will own 70% of the SPC and Graess Energy will hold the remaining 30% stake.
A Power Purchase Agreement (“PPA”) is expected to be signed in the middle of October 2015 between STELCO and the SPC for a period of 20 years before the full ownership of the PV System is transferred to STELCO. The PV System will have an initial generation capacity of 1.5 megawatts and its total cost is expected to be in the region of US$3.5 million. Total revenue from the sale of power is expected to be about US$550,000 per year. With this award, Graess Energy will continue its effort to pursue more solar PV projects in the Maldives.
