Infrastructure & PPPs in Singapore, Laos and Cambodia - Q1 2026 Update

YOG INFRA
2 days ago
21 min read

SINGAPORE, LAOS, AND CAMBODIA are advancing infrastructure, clean energy, and regional connectivity through innovation and investment. SINGAPORE is strengthening its role as a tech and energy hub with AI data centres, autonomous transport, and solar capacity expected to reach 5.3 GW by 2035, alongside hydrogen and storage solutions. LAOS is enhancing regional connectivity and energy diversification through rail expansion, solar projects, and its 2026–2030 development plan, positioning itself as a transit and power export hub. CAMBODIA is driving investment-led growth with USD 10 Bn in projects, expanding energy (LNG, BESS) and logistics infrastructure to improve grid stability and trade competitiveness.

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

SINGAPORE

SINGAPORE’S FLINT STARTS PILOT PRODUCTION OF PAPER BATTERIES

Flint has begun pilot production of its paper battery technology in Singapore, marking a shift from laboratory-scale development to manufactured battery cells suitable for pilot installations and customer testing programmes. The move represents a key milestone for the company as it transitions its technology toward commercial deployment.

Flint is developing cellulose-based, biodegradable batteries designed to reduce reliance on conventional materials such as lithium, nickel, cobalt, and lead. Entering pilot production enables its batteries to be produced at consistent quality levels and in volumes that can be independently validated by customers. Flint plans to showcase its first two commercial paper battery products at CES 2026 in Las Vegas.

In 2025, the company raised USD 2 Mn in a pre-Series A funding round, including some debt, backed by a group of angel investors, among them Flint’s two co-founders. Alongside its Singapore operations, Flint is in the discussions with a major global contract manufacturer to potentially expand manufacturing capacity in Europe as it prepares for larger-scale production.

SINGAPORE SOLAR CAPACITY FORECAST TO REACH 5.3 GW BY 2035

Singapore projected to reach around 5.3 GW of installed solar capacity by 2035, driven by steady annual additions of 300–400 MW. The consultancy estimates that cumulative solar capacity will rise from about 1.9 GW in 2025 to more than 3.2 GW by the end of the decade, exceeding the country’s 2 GW target under the Singapore Green Plan 2030.

Growth is expected to continue through the early 2030s, with solar capacity surpassing 4 GW in 2031 and crossing the 5 GW mark by 2034. Overall, Singapore’s solar sector is forecast to grow at a compound annual growth rate of around 11.7% between 2024 and 2035. Deployment is being supported by a mix of rooftop, floating, and utility-scale projects, alongside government policies that promote solar integration in dense urban and industrial settings.

While solar remains the cornerstone of domestic renewable energy expansion, Singapore’s power system will continue to rely heavily on natural gas, which currently accounts for about 95% of electricity generation. Gas-based capacity is expected to increase in parallel to support grid reliability. The country is also advancing cross-border low-carbon electricity imports and regional clean energy cooperation, complementing domestic solar growth and strengthening long-term energy security.

GRAB TESTS SELF-DRIVING SHUTTLES IN SINGAPORE

Grab has begun public trials of autonomous shuttle services in Singapore, marking a significant step in the company’s push toward self-driving mobility. In partnership with WeRide, the pilot programme launched in Punggol on January 12, 2026, initially offering rides to residents, grassroots advisers and invited media. The service operates along a fixed 10 km route connecting residential areas such as Matilda Court and Punggol Clover with commercial hubs including Punggol Plaza and Oasis Terraces.

The autonomous shuttles completed more than 10,000 km of driverless operation without incident, providing confidence as Singapore continues to test autonomous vehicles for everyday use. In its current phase, the service functions like a scheduled shuttle with designated stops, allowing regulators and operators to closely monitor safety, reliability and user acceptance.

Across the border, Malaysia is progressing more cautiously. While Malaysia has carried out pilot projects such as Autonomous Rapid Transit trials in Putrajaya, current regulations only permit testing of Level 3 autonomous vehicles, requiring safety officers and manual override systems.

RACKS CENTRAL BUILDS REGIONAL AI DATA CENTRE CORRIDOR ACROSS SINGAPORE, JOHOR AND BATAM

Singapore-based data centre operator Racks Central is developing a regional AI-ready infrastructure corridor spanning Singapore, Johor (Malaysia) and Batam (Indonesia) to meet surging demand for high-power artificial intelligence workloads. The strategy combines Singapore’s connectivity and ecosystem strength with Johor’s scale and power availability, and Batam’s cost efficiency and proximity to Indonesia’s Java market.

In Johor, the company has secured three land parcels totalling about 88,625 sq m to develop up to 510 MW of AI-focused data centre capacity. In Batam, Racks Central is building a 120 MW modular facility designed for large-scale, high-performance computing, allowing flexible regional expansion for clients. The developments complement the firm’s existing 12 MW facility in Singapore.

The expansion reflects growing demand driven by cloud adoption, e-commerce and AI deployment across Southeast Asia. Racks Central reported revenue growth from SGD 14.9 Mn (USD 11.6 Mn) in FY2021 to SGD 32.8 Mn (USD 24.6 Mn) in FY2024 and plans to increase its workforce to around 70 employees by the end of 2026 as construction and operations scale across the three markets.

CHINA ENERGY ENGINEERING GROUP SECURED FLOATING SOLAR EPC CONTRACT FOR SINGAPORE’S PANDAN RESERVOIR PROJECT

China Energy Engineering Group’s Shanxi Electric Power Engineering Institute signed the EPC contract for the floating photovoltaic project at Singapore’s Pandan Reservoir, marking another step in its continued development and deep-rooted expansion in the Singapore market.

The Pandan Reservoir floating solar project is located in the Pandan Reservoir area, surrounded by a large open park environment with excellent ecological foundations. The project has an installed capacity of 91 MW and includes the construction of a 66 kV booster station, with two 66 kV transmission lines connecting to the grid company’s substation. Upon completion, it will serve as a significant milestone in Singapore’s pursuit of green and low-carbon energy transformation by 2030, providing solid support for the country’s efforts to reduce reliance on fossil fuels and increase the share of renewable energy.

SPRINGVIEW ENTERPRISES PARTNERS WITH JIANGSU GSO TO LAUNCH SOLAR SOLUTIONS IN SINGAPORE

Springview Holdings Ltd. announced that its wholly owned operating subsidiary in Singapore, Springview Enterprises Pte. Ltd., entered into a memorandum of understanding with Jiangsu GSO New Energy Technology Co. Ltd. to explore a potential strategic collaboration to introduce solar and energy-efficient solutions for residential housing projects in Singapore.

Under the partnership, Springview plans to integrate optional solar and green-energy solutions--such as rooftop solar photovoltaic systems and related energy-efficiency technologies-- into its residential design-and-build offerings. GSO will provide product solutions, technical expertise, and engineering support, while Springview will continue to oversee overall project delivery, regulatory coordination, and homeowner engagement in Singapore.

Residential rooftop solar, in particular, is increasingly recognized as a practical solution to support cleaner energy consumption and reduce long-term electricity costs for homeowners. By collaborating with GSO, Springview aims to broaden access to proven solar and green-energy technologies while maintaining a disciplined, partnership-driven approach that does not alter its core construction and project-management focus.

MATCHLOG, STA ALLIANCE PARTNER TO INITIATE DIGITAL CONTAINER REUSE IN SINGAPORE

MatchLog, a container-reuse platform, and STA Alliance, the commercial subsidiary of the Singapore Transport Association (STA), signed a Memorandum of Understanding (MOU) to drive digitalization and sustainability initiatives across Singapore’s container logistics sector. The partnership aims to overhaul how empty containers are managed within the country by promoting the widespread adoption of street turns. This process allows empty containers to be reused directly between trips without returning to depots, a shift designed to reduce congestion and improve operational efficiency.

The collaboration between MatchLog and STA will integrate MatchLog’s proprietary STinder technology platform with STA’s extensive transport and logistics network. By matching import containers directly with export requirements, the initiative aims to reduce empty container movements, minimise unnecessary trips to and from storage depots, improve asset utilisation by keeping containers in active circulation, and ultimately lower the environmental impact by reducing the carbon footprint associated with container transport. The partnership is designed to offer practical benefits to trucking and logistics operators. By facilitating a transition toward data-led operations, the collaboration aims to help hauliers save fuel and time while alleviating port and road congestion.

NXERA COMMISSIONS 58 MW DC TUAS AI-READY DATA CENTRE IN SINGAPORE

Nxera, the regional data centre arm of Singtel, has commissioned the DC Tuas data centre in Singapore, adding 58 MW of AI-ready capacity to support artificial intelligence, cloud and high-performance computing workloads. The facility is fully operational, with more than 90% of capacity pre-committed to customers prior to launch.

DC Tuas is an eight-storey, 120,000-sq-ft, carrier-neutral and multi-tenanted facility designed for high rack-density AI workloads. It incorporates direct-to-chip liquid cooling, advanced electrical systems, and supports higher power densities required for next-generation AI infrastructure. The data centre is integrated with a cable landing station, enabling direct access to international and domestic networks.

The project increases Nxera’s total data centre capacity in Singapore to 120 MW, reinforcing Singapore’s position as a regional hub for AI and digital infrastructure. DC Tuas meets Green Mark Platinum standards and targets a PUE of 1.25, with sustainability features including solar power, rainwater harvesting and water reuse. Nxera plans to bring additional AI-ready capacity online in Batam and Johor in H2 2026, with regional capacity expected to exceed 400 MW in the mid-term.

SINGAPORE LTA TO ADD BUSES UNDER BUS CONNECTIVITY ENHANCEMENT PROGRAMME

The Land Transport Authority (LTA) has announced further additions and adjustments to bus services under the Bus Connectivity Enhancement Programme (BCEP), with new routes and service extensions scheduled to be rolled out from March 2026. Under the latest phase, a new feeder service, Service 831, will begin operating within Tengah from 8 March 2026, while Services 97 and 97e will be extended from Jurong East to Tengah to improve connections between the new town and surrounding transport nodes.

In subsequent months, Service 181 will also be extended from Jurong West to Tengah. Additional peak-period services will be introduced, including Services 457, 458 and 459 serving Hougang, Sengkang and Punggol, providing direct access to the Circle Line and the Tai Seng employment area. Other planned routes include Service 460 (Tampines Boulevard–Tampines MRT), Service 461 (Yishun East–Khatib MRT), and a new City Direct Service 684 linking Brickland and Bukit Batok West to the CBD.

BCEP was launched in July 2024 to improve bus connectivity for housing estates located farther from MRT stations and to provide alternative travel options along heavily used rail corridors. Since its introduction, 27 new and extended services have been implemented and 62 existing services have been adjusted, with around 244,000 commuters using the enhanced routes daily.

SINGAPORE’S LTA ACCELERATES RAIL SYSTEM UPGRADES WITH EXTENDED MRT CLOSURES

Singapore’s Land Transport Authority (LTA) has commenced extended night closures and selected full-day shutdowns across parts of the MRT network from February 21, 2026, to accelerate renewal of core rail systems. The move follows the government’s acceptance of recommendations by a national rail reliability task force, targeting upgrades to rolling stock, signalling and traction power infrastructure.

The accelerated works programme includes renewal of trains, modernisation of signalling systems, enhancement of traction power substations and switchgear, and the deployment of standardised condition monitoring systems. Closures are designed to allow longer engineering windows, enabling completion of complex tasks without repeated short-duration disruptions. Bus bridging services and adjusted train schedules will be implemented on affected stretches during work.

The upgrades form part of Singapore’s long-term rail reliability strategy aimed at reducing breakdown risks, improving response times and extending asset life. Investment is expected to support multi-year procurement across rolling stock, wayside equipment, power systems, sensors and predictive maintenance technologies. The programme is positioned as a preventive renewal initiative to strengthen network resilience and sustain ridership growth over the long term.

SINGAPORE TO DEVELOP MARITIME MASTER PLAN

Singapore’s Maritime and Port Authority (MPA) is developing the Maritime Singapore Master Plan, a long-term strategy aimed at strengthening the country’s competitiveness as a global hub port and international maritime centre. The master plan is expected to be finalised in 2027 and will outline priorities for the sector’s development over the coming decades.

The initiative will focus on expanding Singapore’s role as a centre for maritime technology, innovation and research, including developments in artificial intelligence and digitalisation. The plan will also emphasise workforce development and the strengthening of maritime capabilities to support the country’s shipping and logistics ecosystem. MPA will engage businesses, industry stakeholders and the public in the coming months, while a dedicated industry panel comprising key business leaders will provide input on sector opportunities and challenges.

Singapore is also investing in major port infrastructure projects as part of its maritime strategy. Tuas Port, which is under development, is expected to reach a capacity of 65 million TEUs when completed in the 2040s, making it the world’s largest fully automated container terminal. In parallel, the government plans to expand trials of unmanned surface vessels for port operations and introduce new initiatives such as the Maritime Cluster Fund Global Rotation scheme to strengthen workforce skills and international collaboration in the shipping industry.

ST ENGINEERING TO DEPLOY INTEGRATED ITS FOR SINGAPORE

ST Engineering’s Urban Solutions business will deploy an integrated suite of Intelligent Transport Systems (ITS) for Singapore’s Land Transport Authority (LTA) to support the development of a more responsive and future-ready road transport network. The deployment includes the new iTransport platform, a traffic monitoring camera system (TMCS) and an integrated traffic and plant management system (ITPMS).

The iTransport platform will function as the central control system for traffic operations, integrating data from the TMCS and ITPMS to provide operators with real-time information on traffic conditions across Singapore’s road network and tunnels. This will support faster incident response, coordinated traffic management and improved optimisation of traffic flows.

The upgraded traffic monitoring camera system will provide island-wide visibility of road conditions, enabling traffic operators to quickly identify congestion, incidents and major events. The system will help improve coordination and enable faster response to changing traffic situations.

Meanwhile, the integrated traffic and plant management system will be implemented on the Kallang–Paya Lebar Expressway (KPE) and the Marina Coastal Expressway (MCE). The system will manage both traffic flow and tunnel operations, improving operational efficiency while supporting safer and more reliable road transport infrastructure.

BRIDGE DATA CENTRES PLANS USD 3.9 BN AI INFRASTRUCTURE INVESTMENT IN SINGAPORE

Bridge Data Centres, backed by Bain Capital, is planning to invest up to SGD 5 Bn (about USD 3.9 Bn) in artificial intelligence (AI) infrastructure in Singapore as demand for high-performance computing continues to grow across Asia. The investment will focus on developing advanced data centre technologies, including next-generation cooling systems, energy-efficient power architectures and AI-enabled operations designed for high-density computing environments.

Singapore will serve as the primary base for the initiative, with the company also planning to recruit technical and research talent to support innovation and facility development. Bridge Data Centres is working with multiple partners to expand its AI infrastructure capabilities as part of a broader strategy to scale its presence across Asia and reach up to 3 GW of global capacity by 2030.

As part of its development pipeline, the company is also exploring alternative energy solutions, including Singapore’s first floating hydrogen-based power generation system in partnership with Concord New Energy. The barge-based platform is intended to supply electricity to future AI data centres, supporting more sustainable and reliable power sources for energy-intensive computing operations.

SWELECT-FORTIFYGRID JV TO DEVELOP SOLAR-BATTERY STORAGE PLATFORM IN SINGAPORE

Swelect Energy Systems has partnered with FortifyGrid LLC to establish a joint venture focused on developing solar and battery energy storage system (BESS) projects in Singapore and across the ASEAN region. The JV will be set up through Swelect’s Singapore-based subsidiary and will operate as a 50:50 partnership between the two companies. The initiative aims to design, develop and deploy integrated solar and energy storage solutions, supporting the growing demand for reliable and dispatchable renewable energy.

The collaboration will focus on engineering, procurement, construction and project management services, including system design, cost optimisation and operational planning. By combining Swelect’s experience in solar manufacturing and project execution with FortifyGrid’s expertise in grid infrastructure and energy storage, the partnership aims to strengthen capabilities in hybrid renewable solutions.

Singapore is expected to serve as a strategic hub for the JV’s regional expansion, with a broader focus on ASEAN markets where demand for battery storage is increasing alongside renewable energy deployment. The platform will support grid stability and enable better integration of intermittent solar generation through storage-backed solutions.

SINGAPORE LTA RECEIVES FIRST DRIVERLESS PUBLIC BUS FOR PILOT DEPLOYMENT

The Land Transport Authority (LTA) of Singapore has received the first of six autonomous public buses, marking a key milestone in the country’s push toward smart and driverless mobility solutions. The 16-seat bus will undergo rigorous testing before being deployed on public routes, including Service 400 in Marina Bay and Service 191 in the one-north district, from the second half of 2026. The pilot programme will run for an initial three years, with the buses operating alongside conventional manned services.

Equipped with advanced cameras and sensors providing 360-degree situational awareness, the buses are designed to ensure high safety standards and reliable operations. Testing will include closed-circuit trials, manoeuvrability assessments, and passenger boarding and alighting evaluations. The vehicles are developed by a consortium comprising BYD, Zhidao Network Technology, and MKX Technologies. Following the initial rollout of six buses, authorities may procure up to 14 additional units and expand operations to more routes across Singapore.

SINGAPORE TO PILOT RENEWABLE HYDROGEN POWER FOR AI DATA CENTRES

Concord New Energy Group (CNE Group) signed a Memorandum of Understanding (MOU) in Singapore with Bridge Data Centres (BDC), a portfolio company of Bain Capital.

Under the MOU, the parties will jointly explore diversified energy supply pathways integrating renewable energy and hydrogen solutions on a global basis to support the low-carbon transformation of data centre infrastructure. The collaboration includes the development of Singapore’s first barge-based hydrogen power generation solution designed specifically for artificial intelligence (AI) digital infrastructure.

The partnership will encompass hydrogen power pathway studies, system integration design, energy storage deployment assessments, and optimization of power procurement mechanisms. Through these initiatives, both parties aim to enhance energy reliability, operational flexibility, and long-term sustainability for next-generation data centre campuses.

CNE brings extensive expertise in renewable energy development and integrated energy systems, while BDC contributes leading operational capabilities in digital infrastructure. The collaboration is expected to accelerate the convergence of clean energy solutions and advanced computing infrastructure. As artificial intelligence and high-performance computing continue to reshape regional economies, this partnership will further support Singapore’s ambition to remain a leading digital hub powered by low-carbon energy.

LAOS

CONSTRUCTION OF NAM SE DON RIVER BRIDGE IN LAOS RESUMED AFTER A DECADE

Construction of the Nam Se Don River bridge in Khong Se Don district, Salavanh Province, resumed after being stalled for almost ten years, with authorities targeting completion within 2026. The project, which began in early 2015, was suspended in January 2017 and left partially completed for nearly a decade.

The bridge spans 210 metres and is 12.12 metres wide, including pedestrian walkways on both sides. As of the resumption, around 56.65% of the structure has been completed. The remaining works include asphalt paving of access roads, concrete works at the approaches, installation of railings, drainage systems, erosion protection, and other finishing components. The cost of the outstanding construction is estimated at more than LAK 34 Bn (about USD 1.57 Mn).

LAOS MAPS DEVELOPMENT PATH UNDER 10TH NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN

The Government of Laos formally unveiled its 10th five-year National Socio-Economic Development Plan for the 2026–2030 period, setting out targets for economic growth, fiscal stability, infrastructure expansion, and social development. The plan outlines six strategic objectives and 26 priority work programmes, including annual economic growth of at least 6%, GDP per capita of USD 3,104, inflation below 5%, and public debt reduced to under 70% of GDP by 2030. Forest cover is targeted to reach 70% nationwide, linking economic development with environmental protection.

Key focus areas include strengthening domestic production capacity, improving macroeconomic stability, and raising investment efficiency. The government will prioritise micro, small and medium enterprises alongside state-owned and collective production groups, while advancing the digital economy as a driver of productivity, innovation, and modernization.

The strategy further emphasizes balanced urban–rural development, poverty reduction, food security, expanded social protection, gender equality, and continued clearance of unexploded ordnance. Infrastructure development will focus on improving regional and international connectivity through roads, railways, airports, and digital networks, with cities and special economic zones positioned as growth hubs for industry, logistics, and tourism.

Building on outcomes from the 9th National Socio-Economic Development Plan (2021–2025), Laos recorded average annual growth of 4.24%, reduced public debt from 112% of GDP in 2022 to about 88% in 2025, and achieved a trade surplus of USD 8.4 Bn. The government stated that effective implementation of the new plan will strengthen national resilience and long-term economic stability.

LAOS ADVANCES RAILWAY EXPANSION WITH NEW VIENTIANE–PAKSE AND LAOS–VIETNAM LINKS

The Government of Laos will undertake a feasibility study for a new railway between Vientiane and Pakse, while also moving ahead with plans to construct a cross-border rail link connecting Laos and Vietnam. The line will run from Khammuan province to the Vietnamese border, strengthening regional connectivity and supporting trade and logistics.

Rail expansion forms part of the government’s broader strategy to address economic and financial challenges and promote socio-economic development. Over the next five years, Laos also plans to link the existing Laos–China Railway with the Lao–Thai railway, further integrating the country into regional transport networks.

Since entering service in December 2021, the Laos–China Railway has carried more than 12 Mn passengers domestically and over 16 Mn tonnes of freight. The Vientiane–Kunming corridor has handled more than 62 Mn passengers and 72 Mn tonnes of cargo, contributing to lower transport costs, faster travel, and growth in trade and tourism.

ASIAN DEVELOPMENT BANK SUPPORTS URBAN PLANNING FOR RESILIENT AND SUSTAINABLE CITIES IN LAOS

The Asian Development Bank (ADB) approved a USD 700,000 grant to support feasibility studies and project preparation for more resilient and sustainable urban development in Laos, as the country faces rapid urbanization and growing tourism demand.

The ADB grant will finance technical studies to identify and prioritise future urban infrastructure investments. Key focus areas include urban planning, road and transport networks, drainage and flood management systems, riverbank protection, bridges, and solid waste management facilities. The project aims to strengthen the resilience and sustainability of urban infrastructure while improving service delivery for both residents and visitors. Target areas include Xay District in Oudomxay Province and Namtha District in Luang Namtha Province, both of which are experiencing increased development pressure.

LAOS AND UAE SIGN DIGITAL, AI AND CYBERSECURITY COOPERATION AGREEMENTS

The Governments of Laos and the United Arab Emirates have signed multiple cooperation agreements covering digital transformation, artificial intelligence (AI), cybersecurity and digital finance. The agreements aim to strengthen Laos’ digital infrastructure, support the expansion of online public services and enhance economic and technology cooperation between the two countries.

Under the arrangements, the Lao Ministry of Finance signed a memorandum of understanding (MoU) with Kaspersky Middle East to enhance cybersecurity for digital infrastructure, financial platforms and online transactions. The cooperation also includes technical training and capacity-building programmes to address skills gaps as Laos accelerates digitalisation.

Separately, the Ministry of Technology and Communications of Laos signed an agreement with Menas Capital to support Laos’ participation in a planned ASEAN Digital and AI Hub. The initiative is intended to improve digital public services and enable Lao businesses to integrate more closely with regional technology and AI ecosystems.

LAOS SIGNS DEAL FOR 100 MW SOLAR PROJECT TO BOOST ENERGY EXPORTS AND DOMESTIC GRID STABILITY

Laos is taking a major step to strengthen its position as a renewable energy hub in Southeast Asia. The country’s state electricity company has signed an agreement with a South Korean private firm to build a 100-megawatt (MW) solar power project in the northern province of Oudomxay, near the Namhin Reservoir in Xay district. The project is part of Laos’s wider plan to diversify its energy sources and enhance its reputation as the “Battery of Southeast Asia.

The project is undergoing feasibility studies, with construction expected to start in 2027. Once completed, the solar plant will produce around 160 gigawatt-hours of electricity each year, enough to power about 100,000 homes. The facility will cover roughly 150 hectares, making it one of the largest solar developments in the region.

A key aim of this project is to increase energy exports. A significant portion of the electricity generated is planned for export to Vietnam. By sending clean energy to neighboring countries, Laos hopes to earn valuable revenue while helping the region meet its renewable energy goals. This approach also allows Laos to make the most of its natural resources and strengthen cross-border energy trade within ASEAN.

The solar project will also play an important role domestically. Laos has traditionally relied heavily on hydropower, but seasonal changes can affect water availability and reduce electricity production. By adding solar energy, the country can maintain a more stable power supply, especially during the dry season. This will reduce the need to import expensive electricity and help keep energy prices stable for local consumers.

GULFTAINER, PTL EXPLORE LAOS DRY PORT OPERATIONS

Gulftainer has signed a memorandum of understanding (MoU) with PTL Holding Company Limited to explore collaboration in dry port operations in the Lao People’s Democratic Republic (Laos), marking a significant step in the UAE-based logistics firm’s expansion into Southeast Asia.

Under the agreement, both parties will assess opportunities to develop and operate major dry ports, leveraging Gulftainer’s expertise in port and logistics services to enhance inland freight infrastructure and boost regional trade connectivity. The collaboration also aligns with broader objectives to improve logistics corridors and intermodal solutions across Laos and neighbouring markets. The move underscores Gulftainer’s commitment to strengthening its presence in Southeast Asia’s growing logistics sector and supporting cross-border trade development.

CAMBODIA

CAMBODIA APPROVED 630 INVESTMENT PROJECTS WORTH USD 10 BN IN 2025

The Government of Cambodia approved fixed-asset investment projects worth around USD 10 Bn in 2025, marking a year-on-year increase of about 45%. The country licensed 630 projects during the year, up 52% from 414 projects in 2024. Manufacturing continued to dominate approvals, reflecting Cambodia’s role as a regional production base, while infrastructure and Agri-based projects supported broader economic diversification.

China remained Cambodia’s largest foreign investor, accounting for more than half of total approved investment value. Other significant sources of investment included Singapore, Vietnam, the British Virgin Islands, the United Kingdom, the United States, the Cayman Islands, Samoa, and Bermuda. Trade frameworks such as the Regional Comprehensive Economic Partnership and Cambodia’s bilateral free trade agreements with China, South Korea, and the United Arab Emirates have played a key role in attracting foreign direct investment by improving market access and investor confidence.

CHINA’S SN POWER SECURED USD 208 MN CONTRACT TO RUN CAMBODIAN LNG POWER PLANT

Shenzhen Nanshan Power won an operation and maintenance contract worth USD 208 Mn for a liquefied natural gas-fired power plant under construction in Cambodia. SN Power Gas Turbine Engineering and Technology received a letter of award from Cambodian investment and development conglomerate The Royal Group’s subsidiary Botum Sakor Energy.

SN Power Gas Turbine will provide O&M services for the plant’s gas turbines during the post-completion commissioning phase this and next years and the two subsequent major overhaul cycles between 2028 and 2042. With a total investment of about USD 1.3 Bn, the LNG-fired power plant is located in Cambodia’s Koh Kong province. It is equipped with two sets of 450-megawatt (MW) gas turbines. The first one is scheduled to be completed and put into operation in Q2 2027, while the second one is expected to be commissioned in Q4 2027.

The plant kicked off construction in Q3 2025. Upon completion, its annual power generation will account for around one-fourth of Cambodia’s total power output, substantially improving the stability of the country’s power supply and contributing to advancing the low-carbon transformation of the local energy structure.

CAMBODIA RAILWAYS AWAIT MODERNISATION PUSH

Cambodia’s railway sector remains underutilised despite government efforts to revive it, with passenger numbers significantly lower than road and air transport. In 2025, the country’s railways carried around 400,000 passengers, compared to over 20 million bus and taxi users and about seven million air travellers, highlighting the limited role of rail in the national transport system.

The country’s 612 km railway network, operated by Royal Railway, consists of two main lines. The Southern Line connects Phnom Penh to Sihanoukville via key tourist destinations such as Kampot and Kep, while the Northern Line links Phnom Penh to Battambang. However, services are constrained by low speeds of 40–50 km/hr, outdated infrastructure, and limited frequency, with only one train per day on each line. Travel times are significantly longer than road alternatives, reducing rail’s attractiveness for daily commuting despite lower fares and relatively comfortable onboard conditions.

To address these challenges, Cambodia is pursuing long-term rail modernisation under its Comprehensive Master Plan on Intermodal Transport and Logistics (2023–2033). Plans include developing high-speed rail lines with speeds of up to 160 km/hr and increasing annual ridership to 1.5 million passengers by the end of the decade. A proposed high-speed Phnom Penh–Poipet line alone is estimated to cost around USD 4 Bn.

In addition to passenger services, rail development is expected to support freight growth and regional connectivity. Rail freight reached 1.16 million tonnes in 2024 but still accounts for only about 7% of total goods transport. Ongoing and planned projects aim to connect Cambodia’s rail network with Thailand and Vietnam, improve airport links, and strengthen integration with regional trade corridors. These developments are expected to play a key role in enhancing Cambodia’s logistics efficiency and economic competitiveness.

CAMBODIA PLANS NEW PORTS IN KAMPONG CHHNANG AND KAMPOT

The Government of Cambodia has approved plans to develop two new multi-purpose ports and logistics centres in Kampong Chhnang and Kampot provinces as part of efforts to strengthen inland waterway transport and improve national logistics capacity. The projects were formalised through sub-decrees issued by Prime Minister and align with the country’s Comprehensive Intermodal Transport and Logistics System Master Plan (2023–2033).

The Kampong Chhnang Multipurpose Port, to be located along the Tonle Sap River, will have a handling capacity of up to 2 million tonnes of cargo annually. Meanwhile, the Kampot Logistic Port is designed to handle around 3 million tonnes per year. Both facilities will support international vessels and enable cargo handling, transhipment, and the movement of containers and bulk goods.

The initiative aims to shift part of Cambodia’s freight transport from road to waterways, reducing logistics costs, easing road congestion and lowering infrastructure wear. Authorities also expect the ports to enhance connectivity between river, road and rail networks, creating a more integrated and efficient transport system.

The projects build on Cambodia’s existing port infrastructure, including Sihanoukville Autonomous Port and Phnom Penh Autonomous Port, which have recorded strong growth in cargo volumes. The new developments are expected to improve the competitiveness of the logistics sector, support trade expansion and strengthen Cambodia’s role in regional supply chains.

CAMBODIA LAUNCHES LARGEST 1,000 MWH BATTERY STORAGE PROJECT TO BOOST GRID STABILITY

SchneiTec, a renewable energy developer, has officially launched Cambodia’s largest Battery Energy Storage System (BESS) project at its solar farm in Krakor district, located in Pursat province. With a total storage capacity of 1,000 megawatt-hours (MWh), the project marks a major milestone in the country’s transition toward a more stable and sustainable energy system. The newly commissioned facility is the first project of its kind at this scale in Cambodia, highlighting the growing importance of energy storage in supporting renewable power integration.

By storing excess electricity generated from renewable sources such as solar and wind, the system enables power to be used even when generation is low, particularly during nighttime hours. This capability not only improves energy efficiency but also reduces reliance on conventional fossil fuel-based power generation, which has traditionally been used to balance supply and demand.

The project is also expected to strengthen overall grid performance by improving power quality management. With advanced storage capabilities, grid operators can better manage fluctuations in electricity generation and demand, ensuring a more balanced and resilient power system. In addition to its operational benefits, the BESS project represents a significant technological advancement for Cambodia’s energy sector. The integration of grid-forming technology positions the country among the early adopters in the ASEAN region to implement such advanced solutions. This technology plays a key role in maintaining grid stability, especially as the share of renewable energy in the power mix continues to grow.

The launch of this large-scale energy storage system aligns with Cambodia’s broader energy strategy, which aims to achieve 70% clean energy generation by 2030. As the country accelerates its shift toward renewable energy, infrastructure projects like this BESS installation are expected to play a critical role in supporting that transition.

List of key transactions - Singapore, Laos and Cambodia Q1 2026

Source: YOG INFRA, Public Information

ABOUT YOG INFRA

Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.

YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore, India and UAE, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.

For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com

#infrastructure #update #PPP #singapore #laos #cambodia