Suntech Power Holdings Co Ltd, a large solar power panel producing company from China, declared that it has entered into an agreement to build solar power plants in South Africa amounting to nearly 100 MW.
The agreement is said to be signed by Jacob Zuma the South African President during his recent visit to China along with other agreements related to railways, energy and power transmission. The President has also made a special request to China to invest on its substructure and other manufacturing facilities.
The deal estimated to be between $350 million and $400 million did not name the South African companies that will be benefited by the solar power installation. According to Rory Macpherson, Suntech Power Holdings Co’s Director of Investor Relations, the non-obligatory memorandum of understanding (MOU) is silent on financial terms. He added that his company is exploring the possibilities of investing in solar projects, for an anonymous company and was not able to give any schedule for the proposed investments. He quickly added that his company is committed to develop markets for the manufactured solar products in South Africa which is estimated to be more than $1 billion.