LAHORE, Feb 23: Punjab Chief Minister Shahbaz Sharif says German company AEG is executing 400MW and 50MW solar energy projects in Cholistan and investing Rs100 billion in these schemes.

The Punjab government has also signed two Memorandums of Understanding (MoUs) with German company Energiequelle and Austrian firm Andritz Hydro for cooperation in energy sector.

The CM was talking to the media on the occasion of signing ceremony of MoUs at Model Town on Saturday, says a handout.

He said the 50MW project would start generating electricity in June 2013 whereas the 400MW scheme would also be completed within a year.

He said German company AEG would charge at the rate of 18 cent and sovereign guarantee would be sought from the federal government for the projects.

The energy secretary on behalf of the Punjab government and Helmut Fugemann, director (sales) of Energiequelle, signed the MoU.

The energy secretary and representative of Austrian company Andritz Hydro signed the other MoU. Under the agreement, the German firm will install the 300MW solar energy project whereas the Austrian firm would cooperate in hydel power projects.