They have formed joint venture to build and maintain the district cooling system.
A consortium comprising Keppel DHCS, Thai renewable energy company BCPG Public Company Limited (BCPG), and Thai engineering consultancy TEAM Consulting Engineering and Management Public Company (TEAM GROUP), was awarded a contract by the Property Management of Chulalongkorn University (PMCU) for a district cooling system (DCS), worth more than $329m (THB7.5b), according to an announcement.
Keppel DHCS’ shareholding in the JV will be 26%, whilst the rest will be held by BCPG and TEAM GROUP. In addition, Keppel DHCS will lead the operations and maintenance of the DCS plant for 20 years.
Located in the prime Sam Yan commercial area in the center of Bangkok, the DCS plant will have a projected cooling load of 18,000 refrigeration tonnes (RT). The developments are part of the visionary Chula Smart City Project, which seeks to sustainably rejuvenate and redevelop the Siam Square and Suan Luang - Sam Yan commercial areas.
The DCS plant will be developed over three phases, with its first phase to be operational in Q4 2022 and is expected to be fully completed in 2027.
The energy-efficient and space-saving attributes of DCS is said to make it suitable and attractive to address the needs of city centres, and property developments and is said to lay the groundwork for the adoption of more sustainable cooling solutions given the country’s high demand for cooling all year round.
BCPG, Keppel Corporation Limited, and TEAM GROUP do not expect the transaction to have any material impact on their respective earnings per share and net tangible asset per share for respective companies’ current financial year.
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