Construction and power utilities group JAKS Resources Bhd has partnered with Shanghai-based China Power Engineering Consulting Group International Engineering Co Ltd (CPECC INT'L) to bid for the development of solar photovoltaic (PV) plants with a maximum aggregate capacity of 500 megawatt of alternating current (MWac), under the Energy Commission’s fifth Large Scale Solar (LSS5) programme.

CPECC INT'L is a subsidiary of the power engineering integrative service provider China Power Engineering Consulting Group Co Ltd (CPECC).

In an exchange filing on Friday, JAKS said that its wholly owned unit JAKS Solar Power Holdings Sdn Bhd (JSPH) had entered into a memorandum of understanding (MOU) with CPECC INT'L to establish an exclusive collaboration to develop the solar PV plants.

Under the MOU, both parties agreed to form a consortium, where JAKS will hold a 51% stake and CPECC INT'L will hold 49%, to jointly bid, develop, finance, construct, and operate the solar PV plants.

Should the project be awarded by the Energy Commission, both parties agree to establish a special purpose vehicle (SPV) to implement the project.

Both parties will collaborate on the study, planning, and preparation of the project bidding document by the bid closing date, arrange project financing with acceptable guarantees and terms, and share costs for external consultants and necessary preparations.

JAKS said the MOU is effective upon signing, lasting one year, and will terminate automatically unless extended or upon the occurrence of other events, such as the project being awarded to another party or the request for proposal process being cancelled.

"The MOU will not give rise to any financial obligation by one party to the other. It will not have any financial effects until the signing of the definitive agreement," it added.

In a separate statement, JAKS chief executive officer Andy Ang Lam Poah expressed enthusiasm about partnering with CPECC again after a successful collaboration in Vietnam.

"By leveraging our combined capabilities and expertise, we are confident in the success of our bid. This collaboration aligns with the group’s overall vision to grow our power and energy segment and further enhances the commitment to expand our renewable energy portfolio," Ang added.

Shares in JAKS settled half a sen or 2.86% lower at 17 sen, valuing it at RM443.2 million.