Infrastructure & PPPs in Singapore, Laos and Cambodia - Q1 2025 Update

YOG INFRA Q1 2025 insights

We see continous focus on transport and clean energy transition proejct developments across SINGAPORE, LAOS and CAMBODIA, via bilateral investments and PPPs. . SINGAPORE is taking notable steps to promote e-vehicles in public transport system and to encourage emerging technologies in clean energy sector. LAOS and CAMBODIA are receiving notable bilateral funding and technical assistance support to develop infrastructure sector, including financing from international developers.

Read the latest developments in Infrastructure and PPPs in the three countries in our latest insight.

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SINGAPORE

SINGAPORE LTA INVITES BIDS FOR TAMPINES BUSES

The Land Transport Authority (LTA) of Singapore has opened a tender for the Tampines bus package, comprising 27 routes, to commence operations in 2026. The current operator, Singapore Bus Services Transit Limited (SBS Transit), has managed the package since 2016, but its contract will expire in July 2026. The tender emphasises electric bus operations, with evaluation criteria including fleet optimization, battery maintenance, and safety protocols. The package will also include a new route launching in 2025 under the Bus Connectivity Enhancement Programme.

LTA aims to electrify half of Singapore’s 5,800 public buses by 2030, supported by the East Coast Integrated Depot, opening in 2026, with facilities for over 200 electric buses. As part of ongoing efforts, new depots and interchanges are being equipped with EV chargers. LTA has committed to procuring over 2,000 electric buses in the next five years, with 70 already in service and 410 more expected by the end of 2025.

PACIFICLIGHT TO BUILD HYDROGEN-READY CCGT PLANT IN SINGAPORE

PacificLight Power has been granted the rights to build a 600 MW hydrogen-ready combined cycle gas turbine (CCGT) plant on Jurong Island, Singapore, with operations set to begin in 2029. The plant will be the largest H-class CCGT in Singapore and will include a large-scale battery energy storage system (BESS). The facility is designed to be future-proof, capable of utilising at least 30 % hydrogen from the start, with plans to transition to 100 % hydrogen in the future. This development supports Singapore’s energy security and transition to a lower carbon footprint.

The plant will complement PacificLight’s existing 830 MW CCGT facility and 100 MW Fast Start capacity, expected to be operational by mid-2025. The project aligns with PacificLight’s commitment to decarbonisation and innovative energy solutions. The total cost of the project, including plant and machinery, construction, battery storage system, and related infrastructure, is estimated to be USD 1 Bn. This will be incurred over the three-year construction period.

REC FRAMEWORK TO BE DEVELOPED FOR CROSS-BORDER ELECTRICITY TRADE BETWEEN SINGAPORE AND MALAYSIA

The governments of Singapore and Malaysia have announced a joint study to create a framework recognising Renewable Energy Certificates (REC) in cross-border electricity trade. This initiative follows the commencement of a two-year agreement by Sembcorp Power Pte Ltd to import 50 MW of renewable energy from Malaysia’s Tenaga Nasional Berhad (TNB) under the Energy Exchange Malaysia (ENEGEM) project.

The ENEGEM project marks Singapore’s first renewable power import initiative coupled with RECs, with 28,000 MWh of electricity traded to date. Singapore and Malaysia aim to expand interconnector capacity through a feasibility study by SP Group and TNB, enabling larger-scale power trade and boosting renewable energy investments in the region.

USFCC APPROVES BIFROST SUBSEA CABLE SYSTEM FOR SINGAPORE-NORTH AMERICA LINK

The United States Federal Communications Commission (USFCC) has granted a subsea cable landing license for the Bifrost undersea cable system, a project jointly developed by Keppel, Meta’s Edge Cable Holdings USA, and Telin. The 20,000 km cable will directly connect Singapore to the west coast of North America via Indonesia, marking the first system of its kind.

With system commissioning and testing already underway, the Bifrost Cable System is scheduled to begin commercial operations in Q2 of 2025. The license represents the final regulatory step, enabling the deployment of the USD 350 Mn project, which includes five fibre pairs jointly owned by Keppel and private fund co-investors through a 40-60 joint venture. The initiative strengthens Singapore’s position as a leading digital hub in Asia.

SINGAPORE LTA ISSUES RFP TO DEPLOY AUTONOMOUS BUSES

The Land Transport Authority (LTA) of Singapore has issued a request for proposal (RFP) to conduct a pilot of six autonomous buses on public bus routes. The RFP is expected to close by Q2 of 2025, with the contract expected to be awarded by the end of the year. LTA plans to procure six autonomous buses to commence the pilot in mid-2026 for an initial period of three years. Depending on performance, up to 14 additional autonomous buses may be purchased, potentially expanding the pilot to two more public bus routes.

The bidders are required to provide details of the proposed bus models, fleet management and remote operations systems, electric charging infrastructure, necessary hardware and software for autonomous vehicle operations, and associated maintenance and support services. LTA will evaluate proposals based on the maturity of the technology, the bidder’s track record in local and/or overseas deployments, and the capability to meet the operational requirements of public bus services. 

The selected bidder will collaborate with Singapore Bus Services Transit Limited (SBS Transit), a bus operator, to develop operational concepts and plans. Initially, buses will operate with bus captains onboard as safety operators. After demonstrating at least six months of reliable autonomous operation, the supervisory role may transition to remote safety operators. LTA will monitor the buses in real-time to ensure safety and compliance, mandating measures such as requiring all passengers to be seated and wear seatbelts. Customer service officers may also be deployed onboard to assist commuters.

NTU SINGAPORE AND TRINASOLAR COLLABORATE ON AI-DRIVEN ENERGY STORAGE SOLUTIONS

Nanyang Technological University, Singapore (NTU Singapore), and Trinasolar have partnered to develop advanced smart energy storage systems (ESS) in Singapore. The collaboration, led by NTU’s Energy Research Institute (ERI@N), focuses on integrating artificial intelligence to enhance energy storage efficiency and reliability. AI-driven tools will be developed to improve investment decisions, optimize system performance, and enhance energy forecasting. The initiative aims to support renewable energy expansion by strengthening power grid stability and optimizing energy utilisation.

Further, a technology research collaboration agreement has been signed, marking a step toward AI-powered energy storage innovations to meet growing industry demands.

SINGAPORE AIMS TO BUILD WORLD’S LARGEST AUTOMATED PORT AT TUAS

The Government of Singapore is developing Tuas Port into a fully automated shipping hub by consolidating its existing ports and integrating AI-driven logistics. The project, expected to be completed in the 2040s, will make Tuas the world’s largest automated port, potentially surpassing Shanghai in capacity. 

The port expansion is part of Singapore’s long-term strategy to strengthen its position as a global trade hub. Automation and AI will optimize efficiency, reduce operational costs, and enhance cargo handling. By centralizing port operations at Tuas, Singapore aims to maintain its competitive edge in global maritime logistics.

TOTALENERGIES ENEOS AND TMCC COMPLETE 2.2 MWP GROUND-MOUNTED SOLAR PV PROJECT FOR SUSTAINABLE GOLFING IN SINGAPORE

TotalEnergies ENEOS has completed its first ground-mounted solar photovoltaic (PV) project in Singapore in partnership with Tanah Merah Country Club (TMCC), one of the most prestigious golf clubs in Asia. This project makes TMCC the first country club in Singapore to be primarily powered by an onsite ground-mounted solar PV system, marking a significant step toward sustainability in the golf industry.

The newly installed 2.2 MWp ground-mounted solar PV system consists of more than 3,700 solar panels and is expected to generate over 3,000 megawatt-hours (MWh) of renewable electricity annually. This amount of clean energy is sufficient to power approximately 700 four-room HDB flats for a year. The system will help TMCC achieve significant cost savings while reducing its carbon footprint by approximately 1,300 tons of CO₂ emissions annually, which is equivalent to planting around 20,000 trees.

Under a long-term power purchase agreement, TotalEnergies ENEOS has fully funded, installed, and will operate the solar PV system. TMCC will benefit from this tailor-made solar solution by paying only for the electricity generated over the next 11 years, without any upfront costs.

MALAYSIA-SINGAPORE BIOFUELS HUB TO DRIVE USD 337 MN INVESTMENT

Malaysia-based BAC Renewable Energy (BAC RE) has partnered with Singapore-based Dovechem Group and Tanjung Langsat Port Terminal (TLP Terminal) to establish a biofuels hub in the Johor-Singapore Special Economic Zone (JS-SEZ). The project, named the BAC RE ASEAN Biofuels Storage and Exporting Hub, will focus on bio-liquefied natural gas (bio-LNG) and is set to process up to 350,000 tons annually.

The project will be developed in two phases, with the initial phase targeting an annual capacity of 33,000 tons and a storage capacity of 7,500 cubic meters. Over time, capacity will scale up, and bio-methanol processing will be added. Construction costs for the initial phase are estimated at MYR 150 Mn (USD 33.73 Mn), while total green investments could reach up to MYR 1.5 Bn (USD 33.75 Mn). The hub is expected to promote biofuel adoption in the shipping industry, benefiting from Malaysia’s palm oil bio-waste supply and Johor’s strategic location near the Malacca Strait.

SINGAPORE ALLOCATES SGD 1 BN TO CHANGI AIR HUB DEVELOPMENT

The Government of Singapore will invest SGD 1 Bn (USD 749.57 Mn) over the next five years to enhance Changi’s air hub, separate from the SGD 5 Bn (USD 3.74 Bn) top-up in Budget 2025 for the Changi Airport Development Fund. The Civil Aviation Authority of Singapore (CAAS) will use the funds to improve connectivity, infrastructure, technology, and workforce development. By the mid-2030s, Singapore aims to expand air links from 160 to over 200 cities, alongside Changi Airport’s planned Terminal 5, which will boost capacity by over 50%.             

To strengthen its cargo hub, Sats will invest SGD 100 Mn (USD 74.95 Mn) in upgrading terminals at the Changi Airfreight Centre, increasing capacity by 30% to 3 Mn tonnes annually. Additionally, CAAS and Changi Airport Group will introduce a digital truck dock slot pre-booking system later this year to cut truck dwell time by a third.

SINGAPORE LTA TO ADD 660 MORE E-BUSES BY 2027

The Land Transport Authority (LTA) of Singapore has launched a tender for 660 new electric buses, including 360 three-door single-deckers and 300 three-door double-deckers, with deliveries expected by 2027. They will increase the total number of battery-powered buses in Singapore to 1,140.

The tender follows previous purchases of 360 electric single-deck buses in November 2023 and 60 additional units in October 2024. The new buses will feature automatic fire suppression systems, on-board surveillance with collision detection, and passenger information displays. The move aligns with LTA’s goal to transition to a cleaner energy public bus fleet by 2040.

LAOS

PASSENGER OPERATIONS TO COMMENCE ON FIFTH LAO–THAILAND BRIDGE IN MAY 2025

The fifth Lao Thai Friendship Bridge, connecting Borikhamxay in Laos and Bueng Kan in Thailand across the Mekong River, is now 96 % complete and is expected to commence passenger operations in May 2025. The bridge, which spans 1,350 meters, is expected to facilitate easier travel and enhance trade between Laos, Thailand, and neighbouring countries in the Greater Mekong Subregion. The Lao side of the project, including an access road and checkpoint facilities, has been fully completed, while 94.76 % of the bridge’s construction has been finished. 

The new bridge will significantly benefit businesses involved in trade between Thailand and Vietnam, as Borikhamxay is strategically located near Vinh, Vietnam, a key point on the East-West economic corridor. This infrastructure project aligns with Laos’ National Socio-economic Development Plan and will foster economic and social growth in Borikhamxay. Funded by a THB 1.38 Bn (USD 40.51 Mn) loan from Thailand’s Neighbouring Countries Economic Development Cooperation Agency (NEDA), the bridge is part of a broader effort to enhance connectivity between the two nations.

LAOS–VIETNAM 500 KV POWER LINE IS NOW OPERATIONAL

Vietnam Electricity (EVN) has energised the Monsoon–Thanh My 500 kV transmission line connecting Vietnam. The line links the Monsoon wind power plant in Laos to the 500 kV Thanh My substation in Quang Nam Province, supplying 600 MW to Vietnam’s grid. This project is part of the Vietnam-Laos energy cooperation agreement and aligns with Vietnam’s National Power Development Plan for 2021-30.

The line spans 44.71 km in Vietnam. The line required an investment of over VND 1.1 Trn (USD 43.10 Mn), funded by the Vietnam Bank for Agriculture and Rural Development and EVN’s capital. Despite challenges like land acquisition and rugged terrain, the project was completed on schedule. Once operational, the Monsoon wind power plant is expected to transmit 1.7 Bn kWh annually, enhancing Vietnam’s energy stability and regional energy collaboration.

LAOS SIGNS USD 1.45 BN CLEAN ENERGY DEAL WITH CHINESE INDUSTRIAL COMPANY

Laos has signed a USD 1.45 Bn clean energy deal with a Chinese power plant equipment manufacturer as the Southeast Asian country furthers its push into clean power generation and transmission.

China Western Power Industrial, along with a Singapore-based construction company, signed the agreement with Xekong Thermal Power Plant in Laos to design, supply, and build a 1,800-megawatt clean energy power project in southern Laos. The project is expected to be completed by the beginning of 2030, with initial designs to be finished by the end of this year.

CAMBODIA

THE GOVERNMENT OF CAMBODIA COMMITS TO 70 % E-MOTORCYCLES BY 2050

The Royal Government of Cambodia has committed to a significant shift towards electric vehicles (EVs), aiming for 35 % electric cars, 40 % electric buses, and 70 % electric motorcycles by 2050. This initiative is part of the country’s broader strategy to reduce greenhouse gas emissions, with the transportation sector being a major contributor to pollution. The Ministry of Public Works and Transport (MPWT), in collaboration with the Global Green Growth Institute (GGGI), is promoting the adoption of electric motorcycles as a key step toward achieving these goals. 

The transition to electric motorcycles is expected to reduce the operating cost of electric motorcycles, which are much lower than their internal combustion engine (ICE) counterparts. The cost of operating an electric motorcycle is roughly 8 times less per 100 km compared to an ICE motorcycle. As of November 2024, Cambodia has registered 2,327 electric vehicles, with popular brands including BYD, Toyota, and Tesla. The government is focusing on gradual adoption, especially in urban areas, where motorcycles are the primary mode of transport.

MOUs SIGNED TO ADVANCE SUSTAINABLE INFRASTRUCTURE DEVELOPMENT IN CAMBODIA

The United Nations Office for Project Services (UNOPS) has signed Memorandums of Understanding (MoUs) with three key ministries of the Royal Government of Cambodia – the Ministry of Industry, Science, Technology, and Innovation (MISTI), the Ministry of Public Works and Transport (MPWT), and the Ministry of Land Management, Urban Planning, and Construction (MLMUPC).

The MoUs with the three ministries will prioritise providing technical assistance and strengthening institutional capacity, setting the stage for future collaborative efforts. The agreements emphasise collaboration on the following priorities:

1. Ministry of Industry, Science, Technology, and Innovation (MISTI): Fostering the adoption of green technologies and addressing climate change adaptation for water and sanitation infrastructures.

2. Ministry of Public Works and Transport (MPWT): Enhancing resilient and sustainable infrastructure systems and promoting efficient and inclusive transport networks.

3. Ministry of Land Management, Urban Planning, and Construction (MLMUPC): Advancing sustainable urban development, addressing environmental challenges to benefit rural and urban communities alike.

This collaboration will support the implementation of the ministry’s 15 policy priorities, including sustainable urban development, affordable housing, and smart cities.

CHINA'S SINOMACH TO INVEST USD 996 MN IN HYDROELECTRIC POWER STATION IN CAMBODIA

China National Machinery Industry Corporation, also known as Sinomach, has agreed to invest USD 996 Mn in a Public-Private Partnership (PPP) model to build a pumped storage power station in Cambodia, complementing its existing hydroelectric projects. China Heavy Machinery, a Sinomach subsidiary, and its partners will form an investment company to establish a project company that will build and operate the Upper Tatai Pumped Storage Power Station in southwest Cambodia, the state-owned enterprise announced recently.

The Sichuan province-based firm has signed build-operate-transfer agreements (BOT) with Cambodia's Ministry of Mines and Energy and state-run energy supplier Electricité du Cambodge. The agreements ensure zero land rent and fixed usage fees during the expected 40-year commercial operation period. China Heavy Machinery will invest USD 251 Mn of its own funds, with the remainder coming from bank loans. The internal rate of return is projected to be no less than 8 %.

The hydroelectric power plant, which pumps water between two reservoirs at different elevations, is located three kilometers upstream from the dam of the Upper Tatai Hydropower Station currently under construction by the same company. The pumped storage project will feature four 250-megawatt turbines, achieving a total installed capacity of 1 gigawatt, with completion expected within 5 years.

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List of key transactions - Singapore, Laos and Cambodia  Q1 2025

Source: YOG INFRA, Public Information

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