The companies under Sinomach Heavy Equipment Group(601399.SH) signed relevant agreements for the Upper Stung Tatay Pumped Storage Power Station project in Cambodia.

Sinomach Heavy Equipment Group (601399.SH) announced that in order to promote the continuous and healthy development of the company's investment and operation sectors, the company is continuously increasing its efforts to expand overseas markets. Its subsidiary, China National Heavy Machinery Corporation (referred to as "China Heavy Machinery"), is actively promoting the cascade development of the Stung Tatay River Basin in Cambodia and plans to invest in and construct the Stung Tatay Pumped Storage Hydroelectric Power Station project in Cambodia through the BOT model. After multiple rounds of negotiations between China Heavy Machinery and the Cambodian side on the Stung Tatay Pumped Storage Hydroelectric Power Station project, and approval from the Cambodian government cabinet, on February 21, China Heavy Machinery and the Cambodian side officially signed the Implementation Agreement (IA), Pumped Storage Hydroelectric Agreement (PSHA), and Land Lease Agreement (LA) for the Stung Tatay Pumped Storage Hydroelectric Power Station project. The project is expected to have a static investment amount of approximately $838 million and a total investment of about $996 million. It is reported that the Stung Tatay Pumped Storage Hydroelectric Power Station project is an important component of Cambodia's energy interconnection network and will provide important support for the large-scale development of clean energy such as CECEP Solar Energy in Cambodia. It is an active measure taken by the Cambodian government to improve renewable resources, particularly the impact of CECEP Solar Energy generation on grid stability, and is another large-scale infrastructure and livelihood project of win-win cooperation between China and Cambodia. Once completed, the project will improve grid peak regulation capabilities, promote the integration of new energy sources, ensure the safe and stable operation of the grid, effectively improve electricity demand during the dry season and at night in Cambodia, and play a fundamental role in building a new power system. The implementation of the project will further enhance the company's visibility and influence in the "Belt and Road" market.