The project development arm of GCL New Energy has signed contracts for the design and construction of a minimum of 200MW of projects in China this week.
GCL New Energy Holdings entered into three transactions on Tuesday with contractors Hua Zhong and First Electric. Working through a number of its subsidiaries, GCL New Energy’s latest deals will be worth around US$192 million, payable in instalments.
GCL described Hua Zhong and First Electric as “well-known engineering, procurement and construction (EPC) contractors” with “extensive local resources,” in a disclosure to the Hong Kong Stock Exchange.
The deal with Hua Zhong covers the procurement and construction of the 50MW Hebei Shangyi EC Project PV plant, which is in Shangyi City, Hebei Province. The deal was signed by GCL New Energy’s 95%-owned subsidiary Shangyi Yuanchen as the principal developer. Another subsidiary, GCL New Energy Construction, has been delegated by Shangyi Yuanchen to supervise and monitor the EPC contractor’s performance. The Hua Zhong deal is worth RMB 156,750,000 (US$25.2 million).
The two deals with First Electric were transacted through Dongtou Energy, wholly owned by GCL, and Zhenglanqi State Power (98.8% owned by GCL). The Dongtou deal, worth RMB685,350,000 (US$110 million), is for the construction of the 100MW Shaanxi Yushen PC Project PV plant in Yushen Industrial Zone, Yulin city, Shaanxi province. In a similar arrangement to the Hua Zhong deal, GCL New Energy Construction will oversee First Electric’s work.
Finally, the deal with Zhenglanqi State Power will see a 50MW PV plant built in the Inner Mongolia Autonomous Region. Worth RMB353,155,000 (US$56.8 million), GCL New Energy Construction will once again be delegated to monitor the EPC firm’s performance.
In December, GCL New Energy chairman Tang Cheng said he expected China to have installed 14GW during 2014 due to “explosive growth” in distributed generation (DG). In other GCL news, the group abandoned recent plans to sell off its polysilicon and wafer businesses.