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Infrastructure & PPPs in Singapore, Laos and Cambodia - Q2 2022 Update

YOG INFRA Q2 2022 insights

SINGAPORE is taking steps as per Green Plan with significant activity driven by government backed institutions & funds in the country. LAOS has continued focus on transport sector and development of solar projects through PPPs. CAMBODIA continues to see support from international developers and DFIs for infra sector development. especially renewable energy projects.

Read the latest developments in Infrastructure and PPPs in the three countries in our final insight of Q2 2022 series.

 

Singapore

SINGAPORE UTILITY TO INVEST IN BROWNFIELD DISTRICT COOLING SYSTEM

Singapore state-owned electricity and gas distribution major SP Group will invest between SGD 40 Mn and SGD 60 Mn (USD 29.4 Mn and USD 44.1 Mn) in a district cooling system at a brownfield site at Tampines town centre.

Owners of eight of 14 buildings have signed up to the proposed 1 km underground piping network which will carry chilled water. Owners of seven buildings signed a supply agreement with SP Group while the eighth - Telepark - owned by Ascendas Real Estate Investment Trust - will be plugged into the system later. The network is expected to start operations by the first half of 2025 after which existing in-building chiller plants.


TEMASEK LAUNCHES SGD 5 BN DECARBONISATION FUND

Singapore’s Temasek has launched a wholly owned platform with an initial capital of SGD 5 Bn (USD 3.64 Bn) to invest in decarbonisation initiatives globally.

The new entity, GenZero, will focus on:

  • Technology-based solutions that deliver a deep decarbonisation impact through climate-driven technologies

  • Nature-based solutions that help protect and restore the natural ecosystems to generate climate impact while benefiting local communities and biodiversity

  • Carbon ecosystem enablers, referring to companies and solutions that support the development of an effective and credible carbon ecosystem.

GenZero will invest in early-stage companies and solutions that require patient capital to commercialise and grow, as well as more mature ones that are ready to scale.


SINGAPORE BOARD TERMINATES USD 1.3 BN SPORTS HUB PPP

Sport Singapore (SportSG), a statutory board under the Ministry of Culture, Community and Youth, has initiated the termination of the USD 1.3 Bn Sports Hub public-private partnership (PPP) project agreement.

SportSG has reached a deal with SportsHub (SHPL), a consortium consisting of InfraRed Capital Partners, Cushman & Wakefield and Spectra, on the termination and the handover, and will officially take over the Sports Hub.

SHPL was engaged under the PPP in 2010 to design, build, finance and operate the Sports Hub, which has been operating for eight years since its completion. The PPP was to expire in 2035. There is no penalty for the termination.


Sembcorp to build energy storage systems on Jurong island

Singapore-based Sembcorp Utilities has been appointed by the country's Energy Market Authority to build, own and operate 200MW/200MWh of energy storage systems on Jurong Island.

Construction of the project is expected to be completed by the end of 2022.

The contract win takes Sembcorp’s battery storage portfolio in Singapore and the United Kingdom to 474MW/624MWh and its total renewables portfolio to 7 GW, including operational and under-development projects.


Laos

CHINA-LED JV TO SEEK DEBT FOR LAOS HYDROPOWER PROJECT

A joint venture between China Datang Overseas investment and Thai power firm Gulf Energy Development will seek project financing to build a 912 MW hydropower project in Laos.

The Pak Beng hydropower plant, which will cost between USD 2.2 Bn and USD 2.7 Bn, will have a 70:30 debt-to-equity ratio. An initial tariff memorandum of understanding with the Electricity Generating Authority of Thailand, which includes an average tariff of THB 2.7 (0.08 USD) per KWh.


LAOS TO BUILD EXPRESSWAY CONNECTING VIETNAM

The Government of Laos has signed an agreement with contractors to conduct a feasibility study for the construction of an expressway from its Houaphanh province to the border with Vietnam.

The 80km expressway will run between the Huanmuang district in Houaphanh to the Namsoi International Border Checkpoint. It will be developed in the build, operate, transfer (BOT) model and will be the fourth phase of a larger expressway project between Vientiane and Houaphanh. A feasibility for this stretch is underway.


THAI-LED PARTNERSHIP TO SEEK DEBT FOR 1.4 GW HYDROPOWER PROJECT

A joint venture led by Thai power developer CK Power is set to seek project finance for a 1,460 MW hydropower facility in Laos.The Luang Prabang Hydroelectric Power Project is expected to cost more than USD 1.3 Bn to build, and will have a 3:1 debt to-equity ratio.

CK Power said that it has signed a tariff memorandum of understanding with the Electricity Generating Authority of Thailand (EGAT). The project will receive a tariff rate of THB 2.4 per KWh (7 USD cents per KWh). The hydropower facility is set to be operational on 1 January 2030.

CK Power operates a portfolio of hydropower, co-generation, and solar projects. It is aiming to increase its installed capacity to 4.8 GW by 2024 from 2. 1 GW at the end of 2021.


IFC ARRANGES USD 67 Mn FINANCING FOR LAOS DRY PORT

The International Finance Corporation (IFC) has arranged a USD 67 Mn loan package for the Thanaleng Dry Port in Laos. The World Bank arm will directly provide USD 26.1 Mn, with the remainder being lent by international commercial banks. The funds will be used to cover the port’s development, construction, and equipment costs.

The financing follows an IFC advisory engagement in 2021 when it helped structure a build, operate, and transfer project under a 50-year concession agreement with the government — to attract operating and financing partners.


Cambodia

CHINA’S SPIC PLANS 60 MW CAMBODIAN SOLAR PROJECT

China's State Power Investment Corporation (SPIC) is planning to develop an integrated smart solar energy project in Cambodia. The power group’s unit SPIC Guangxi Overseas Energy Investment has started a feasibility study. Plant will produce 14 MW at the end of the first phase of construction. Its capacity will be expanded to 46 MW at a later stage.

The development will include integrated smart energy facilities in addition to power generation.

The asset will be built in the Kampot China-Cambodia (Thai Boon Roong) Industry Special Economic Zone (SEZ) in the southern part of the country.


SINOMACH PLANS USD 429 Mn HYDROPOWER PROJECT

China's Sinomach - Heavy Engineering plans to develop a 150 MW hydropower project in Cambodia.

The state-owned engineering company will design, build, finance, operate and maintain the Upper Tatay Hydropower Project. The build-own- transfer project will have an estimated investment of USD 429 Mn. The project equity is USD 5 Mn. The project has already signed a 35-year power purchase agreement, as well as implementation and lease deals with the Cambodian government.

The project is expected to have an average annual generating capacity of 530 million kwh. The Upper Tatay project will be located upstream of the operating Tatay Hydropower Station.

 

List of key transactions- Singapore Q2 2022

Source: YOG INFRA, Inframation

 

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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 and India, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.


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