CHINA - Sino Agro Food to Construct Huge RAS Shrimp Farm
Capital Award, Inc. a wholly owned subsidiary of Sino Agro Food, Inc, has begun construction on a 1,300 acre shrimp and hydroponic venture which plans to produce up to 300,000 metric tons of live shrimp per year
Capital Award, Inc. a wholly owned subsidiary of Sino Agro Food, Inc, has licensed its recirculating aquaculture A-Power Technology (APT) to Glory Ocean Development Ltd (GODL), a Hong Kong corporation, who has signed a Sino Foreign Joint Venture agreement with a group of business partners in Zhongshan City, Guangdong Province, PRC. Pursuant to the SFJV agreement, a Sino Foreign Joint Venture Company will be incorporated to develop an 8,000 MU (1,318 acre) shrimp and agriculture center in Zhongshan.
The SFJV agreement specifies that one of the responsibilities of GODL is to procure and secure the services of Capital Award (CA), Inc. as the master consulting and servicing provider and to manage the project. CA will be engaged to provide construction and development, as well as consulting support in the form of management, supervision, and training.
Fees payable to CA for Phase 1, which will cover the next two years of the 20-year project, are presently estimated to total approximately US$149.6 million, consisting of US$104.3 million from construction and development, and US$45.3 million from consulting, including 8.5M USD in license fees for 350 A-Power Modules for Phase I. In addition, CA is expected to be designated as the marketer and distributor of the project\'s end product shrimp and produce.
Sino Agro Food CEO Solomon Lee commented, \"I am very pleased and gratified to make this announcement today. The license agreement represents a culmination and a beginning at the same time. It validates our technology and the success of our current indoor fish and prawn farms, which, in a sense, have served as demonstration farms. The agreement is a major marker in the Company\'s growth and stature. I look forward to reporting more details as further approvals materialize, and project activities progress.\"