The Sino Foreign Joint Venture (SFJV) agreement specifies that Glory Ocean Development (GODL) is to "procure and secure the services of Capital Award, Inc (CA). as the master consulting and servicing provider and management of the Project and its developed operations, to be in charge of all affairs of the Project using the said technology to develop the Project."
In accordance with the agreement, as GODL fulfills this responsibility, CA will be engaged to provide construction and development, as well as consulting support in the form of management, supervision, and training.
Phase I fees payable to CA are presently estimated to total approximately $149.6 million, consisting of $104.3 million from construction and development, and $45.3 million from consulting, including $8.5 million in license fees for 350 A-Power Modules for Phase I.
Phase I covers the period beginning on the date of the license agreement and ending two years thereafter.
In addition, CA is expected to be designated as the marketer and distributor of the project's end product prawns and produce.
Sino Agro Food's A-Power Technology is an engineered, self-contained water treatment and recirculating aquaculture system for aquatic animals on a commercial scale. CA holds the master license for this technology in China.
Sino Agro Food CEO Solomon Lee commented: "I am very pleased and gratified to make this announcement. 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 materialise, and project activities progress."