SINGAPORE (April 25): SBI Offshore says its wholly-owned subsidiary Solar Energy Investments will develop solar photovoltaic power plants in Hopetown, South Africa.
The project will initially supply 50 megawatt of power to the local municipality and may gradually be scaled up to 1,000 megawatt for regional needs over the next 10 years.
Construction of the initial phase is expected to commence in the second half of this year and will complete in an estimated 12 months.
SBI Offshore says the project will be undertaken by a new subsidiary set up there in collaboration with an undisclosed local partner, who will hold a minority stake.
It says it will use its internal funds to finance the investment for the initial phase.
The company does not expect the initial phase to have any "material" impact on its net tangible assets or earnings per share for the financial year ending Dec 31, 2016.
Shares of SBI Offshore ended higher yesterday at 17.9 cents.