YOG INFRA Q2 2024 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 steps to promote distributed solar projects and electricity imports from other ASEAN countries. LAOS continues to see international investments, bilateral partnerships with neighbouring countries such as Vietnam and Thailand, in developing the transport & logistics sector. CAMBODIA is implementing previously annouced projects in clean energy and water sectors.
Read the latest developments in Infrastructure and PPPs in the three countries in our latest insight.
SINGAPORE
SINGTEL, VIETTEL TO DEVELOP SINGAPORE-VIETNAM SUBMARINE CABLE SYSTEM
Singtel and Vietnam’s largest telecommunications company Viettel has signed a memorandum of understanding (MOU) to plan and develop a submarine cable system that directly connects Vietnam and Singapore. The Vietnam-Singapore Cable System (VTS) will be developed with a configuration of eight fibre pairs using advanced wavelength division multiplexing technology. It is scheduled to be operational by Q2 2027 and will be the shortest cable directly connecting both countries.
Its main trunk landing stations in Vietnam will be managed by Viettel, while those in Singapore will be managed by Singtel. Branch landing stations are also expected to be established in Cambodia, Thailand and Malaysia. The latest MOU is in line with Vietnam’s strategy to increase its total number of submarine cables to a minimum of 15 systems by 2030, with a total capacity of at least 334 tbps.
The upcoming VTS will provide a large amount of high-speed capacity, open up a connection direction to the south, and enhance the redundancy and security of Viettel’s international connection infrastructure. It will be the first cable with the latest advanced bandwidth technology jointly established by Vietnam and Singapore’s two largest telecommunications operators. The construction of the VTS cable will support this increasing demand for higher bandwidth and lower-latency connectivity.
FRASERS PROPERTY TEAMS UP WITH SP GROUP FOR SINGAPORE’S LARGEST SOLARISATION
Frasers Property has joined forces with SP Group to embark on Singapore’s most extensive solarisation initiative for retail malls, covering approximately 4,500 square meters of solar panels across seven properties. The solar panels are expected to produce about 920,000 kilowatt-hours of electricity annually, equivalent to powering 450 four-room Housing Development Board flats and resulting in significant energy cost savings and carbon emission reductions. By the end of 2024, the installations will be completed at properties including Alexandra Technopark, Causeway Point, Century Square, and others.
This milestone builds upon the longstanding partnership between Frasers Property and SP Group, which has seen the implementation of various sustainable solutions across properties in Singapore and abroad. Notably, both companies have worked together on projects such as the brownfield distributed district cooling network and the Green Energy Technology Tenant Care solution.
Frasers Property remains dedicated to fostering sustainable ecosystems across its properties, with ongoing initiatives ranging from waste management solutions to renewable energy adoption. With continued collaboration and innovation, the company is poised to make significant strides towards its net-zero carbon goal.
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GURIN ENERGY TAKES FINAL INVESTMENT DECISION ON 39 MWP SOLAR PROJECT IN THE PHILIPPINES
Singapore-based Gurin Energy has taken the final investment decision (FID) on a 39 MWp solar project in the Philippines. This greenfield initiative will transform into a solar farm boasting a peak capacity of 39 megawatts (MW), situated in the Municipality of Capas, Tarlac. The project has secured a 40-hectare site through a 25-year lease agreement with the Philippines’ Bases Conversion and Development Authority (BCDA).
The FID marks a significant advancement for GurÄ«n Energy’s footprint in the Philippines, where the company maintains a robust pipeline of projects totaling 1 gigawatt (GW). Among these projects is the ongoing construction of the 75MW Palauig Solar Power Plant in Zambales province.            Â
The Capas Solar Power Project is expected to produce sufficient clean energy to power approximately 18,000 homes and prevent over 1 Mn tonnes of CO2 emissions throughout its operational lifespan. Gurin Energy has 1 GW of projects in the Philippine pipeline and a total of 7 GW in various stages of development in Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand and the Philippines.
SEMBCORP SCORES SOLAR, GAS PPAS WITH EQUINIX IN SINGAPORE
Sembcorp Power Private Limited, a unit of Sembcorp Industries Limited, has secured two power purchase agreements (PPAs) from United States-based Equinix Incorporation to supply renewable and conventional energy for up to 18 years in Singapore.
Sembcorp Power will supply up to 75 MWp of solar capacity and 30 MW from its gas-fired generation portfolio.
The renewables PPA is Equinix’s first such power supply agreement in Singapore. Singapore’s state-owned group will source solar from its extensive portfolio, which amounts to 727 MWp.The PPA for conventional power will increase Sembcorp’s long-term contracted gas-fired capacity in Singapore from 74% to 77 %.
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ST ENGINEERING-LED CONSORTIUM TO UPGRADE SINGAPORE’S BUS FLEET
Singapore Technologies Engineering’s (ST Engineering) urban solutions unit has secured more than USD 175 Mn in contracts from the Land Transport Authority (LTA) to upgrade technologies for the authority’s fleet management system, fare collection, and power and communications systems. The infrastructure upgrading exercise will be implemented progressively from the second quarter of 2024 and completed by 2027. It will cover about 5,800 public buses.
Technology upgrades will include a new bus fleet management system, which will operate on a cloud-based architecture and be integrated with electric bus and charging infrastructure capabilities. New fare collection equipment on board the buses will run on a 5G network and feature a single unified display that combines both fare collection and fleet management applications.
The Central junction boxes will be installed on the buses to improve power and signal distribution. A new 5G-enabled bus transmitter system is also expected to allow faster more reliable data exchanges between the vehicles and back-end systems. The technology upgrade will not only enhance system connectivity and functionality that benefits commuters and the transport ecosystem but will also pave the way for future innovations in commuter travel.
SARAWAK-SINGAPORE ELECTRICITY PROJECT TO COMMENCE OPERATIONS BY 2031
The Government of Sarawak has announced that the electricity supply interconnection project between Sarawak, Malaysia and Singapore will commence commercial operations by 2031. This project includes installing around 720-km-long undersea cable connecting Tondong, Sarawak to Changi, Singapore.
The electricity supply connection project to Sabah, the electricity supply will be connected from the Lawas substation in Sarawak to the Mengalong substation in Sabah through a 275 kilovolt (kV) transmission line stretching 34 kilometres. The electricity tariff rate in Sarawak is the lowest in the region at 28.05 sen per kilowatt-hour compared to 34.5 sen per kilowatt-hour in Sabah and 40 sen per kilowatt-hour in peninsular Malaysia. — Bernama.
Currently, technical research and survey work for the undersea cable route are underway. Additionally, a preliminary study is being conducted by Sarawak Energy and Tenaga Nasional Bhd (TNB) for a proposed electricity supply connection project from Sarawak to the peninsula region of Malaysia.
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TERRENUS ENERGY SECURES GREEN FINANCING FOR SOLAR INSTALLATION IN SINGAPORE
Terrenus Energy has secured around SGD 300 Mn (USD 222 Mn) in green financing from a consortium of five banks, led by DBS in Singapore. The green loan will fund the installation of photovoltaic (PV) panels on around 1,200 public housing blocks and 57 government sites, along with various commercial and industrial facilities.
The photovoltaic panels installed through this project will provide power to common areas at the designated sites, contributing to Singapore’s goal of achieving at least 2 GWp of installed solar capacity by 2030. Additionally, proprietary smart power meters will be installed in select public housing estates to monitor and track energy consumption patterns and performance data under the Housing & Development Board’s (HDB) Solar Nova Programme.
Terrenus Energy is set to exceed 300 MWp in installed solar capacity. The annual electricity generation from its portfolio is projected to power more than 80,000 four-room Housing and Development Board (HDB) flats for one year, offsetting approximately 150,000 tonnes of carbon emissions compared to traditional energy generation methods.
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AIR LIQUIDE ISSUES EUR 500 MN GREEN BOND TO FINANCE SUSTAINABLE ENERGY PROJECTS IN SINGAPORE
French industrial gas supplier Air Liquide has issued a new EUR 500 Mn (USD 541 Mn) green bond to finance or refinance flagship energy transition and sustainable projects, in low-carbon hydrogen, carbon capture and low-carbon air gases. The bond, with a 10-year maturity and a yield of 3.466%, was issued under Air Liquide’s Euro Medium Term Note (EMTN) program. The issuance aligns with Air Liquide’s strategic plan advance, which integrates financial and extra-financial performances, focusing on low-carbon hydrogen, carbon capture, and low-carbon air gases.
The success of this second green bond issuance illustrates the investors’ confidence in Air Liquide’s ability to implement technologies and pioneer projects that contribute to the decarbonization of our activities as well as help our customers lower their carbon footprint. Air Liquide is involved in multiple sustainable energy projects and partnerships, with its latest endeavor being a collaboration with the Dutch infrastructure provider Vopak.
The two parties signed a memorandum of understanding (MoU) at the beginning of 2024 to study and explore the joint development of low-carbon ammonia supply chains in Singapore. This includes the potential development of ammonia cracking facilities, associated ammonia storage and handling infrastructure at Vopak’s Banyan terminal, as well as the distribution of low-carbon hydrogen through a hydrogen pipeline network. This collaboration aims to support Singapore’s National Hydrogen Strategy, focusing on driving advanced hydrogen technologies with high commercial readiness to establish low-carbon hydrogen supply chains
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PLANS ANNOUNCED A NEW SUBSEA CABLE SYSTEM CONNECTING SINGAPORE AND INDONESIA
Singtel has signed a memorandum of understanding (MoU) with PT Telekomunikasi Indonesia International (Telin) to develop a new subsea cable system, INSICA (Indonesia Singapore Cable System), connecting Singapore and Batam, Indonesia. The two companies have announced a memorandum of understanding to develop a new submarine cable system connecting Singapore and Batam under the newly formed INSICA (Indonesia Singapore Cable System) Consortium.
The two companies outline the construction of the 100 km submarine cable, which is scheduled to go live in Q4 2026. The cable will feature 24 fibre pairs and two diverse terrestrial cable paths, with each fibre pair offering a maximum capacity of up to 20 terabits per second. The INSICA cable aims to enhance connectivity between Singapore and Batam.
This cable system will enhance the connectivity between the countries to support the intensive, higher power-density AI workloads of enterprises and cloud companies. The development of the INSICA cable system is yet another step that we’re taking in architecting a hyper-connected, digital ecosystem to serve the long-term demands of the region’s digital future and boost the regional economy.
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SINGAPORE TO GET TWO HYDROGEN-READY NATURAL GAS POWER PLANTS BY 2030
The Government of Singapore have announced plans to build two additional hydrogen-ready natural gas power plants by 2030 to meet growing electricity needs and ensure energy security. The Energy Market Authority (EMA) invited the private sector to build, own, and operate these plants, which are expected to be operational by 2029 and 2030. Each plant will have a capacity of at least 600 MW, capable of powering around 864,000 four-room flats annually. This will bring Singapore’s total number of hydrogen-compatible power plants to nine by 2030.
This initiative follows that the YTL Power Seraya will construct a USD 800 Mn power plant on Jurong Island, set to be operational by 2027 with the capacity to use up to 30% hydrogen. Additionally, Keppel is building the Keppel Sakra Cogen Plant on Jurong Island, which is expected to be completed by the first half of 2026. The other five plants in the works are by Sembcorp, Meranti Power and Pacific Light Power.
SINGAPORE’S LARGEST FLOATING SOLAR FARM TO BEGIN CONSTRUCTION IN 2025
The Government of Singapore has announced plans to begin construction of its largest floating solar farm at Kranji Reservoir in 2025. The Floating Photovoltaic (FPV) System will be operational by 2027 or 2028, producing 141 MWp of clean energy, or 112.5 MWp when converted to AC, which is the voltage used by the electricity grid and most of Singapore's electrical appliances.
The FPV is expected to contribute to 7.1% of Singapore's target of 2GWp of solar power generation by 2030, generating enough energy to meet the annual electricity needs of around 350,000 households.  Singapore’s solar capacity is at around 1.2GWp as at the first quarter of 2024. The idea of the solar farm was first floated in 2018 by the Economic Development Board (EDB), which had launched a request for information then to explore the possibility of a 100MWp floating solar panel system for private-sector use.
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LAOS
LAOS SIGNS RENEWABLE ENERGY AGREEMENT WITH THAI COMPANY
The Lao government and Energy Absolute Public Company Limited (EA) have formed a joint venture company named Super Holding Company to manage the clean energy business. The partnership will focus on overseeing the management and distribution of clean energy, encouraging the use of electrical vehicles, and promoting sustainable development initiatives in Laos. This will enable Laos to generate revenue from clean energy within three years, alleviate its dependency on crude oil imports, facilitate the development of energy storage and EV solutions, and achieve its national goal of being the Battery of Asia.
The initiative aims, enhance its competitive edge, and address long-term economic stability concerns. Â The core mission of Super Holding Company is to manage clean energy in an integrated manner. This includes asset management, overseas energy distribution management via a single gateway framework, and serving as the principal entity for future investments in the country's clean energy sector or related ventures.
The company will initially undertake multiple hydropower projects with a combined capacity of more than seven gigawatts, serve as a center for managing renewable energy initiatives and oversee the exportation of total power energy.  EA will also assume responsibility for managing fundraising activities, with an anticipated target of USD 1 Bn (THB 36.79 Bn), aimed at revitalising Laos' international reserves, reducing debt, strengthening the currency, and reinstating investor confidence. It will also seek to expand its power export market, bolster support for EV adoption in Laos and augment the number of EV charging stations nationwide. Laos has launched a to promote the adoption of clean energy and EVs to reduce reliance on fossil fuels, maximize the country’s resources and stimulate the economy.
GOVERNMENT GREENLIGHTS WIND POWER IMPORTS FROM LAOS
The Government of Vietnam has approved a purchase proposal from the Ministry of Industry and Trade (MoIT) to purchase electricity from the Truong Son wind farm in Laos and invest in the necessary infrastructure to integrate it into Vietnam's power grid. The 250 MW Truong Son wind power project in Laos, managed by the Vietnam-Laos Energy Investment Joint Stock Company, is slated to start operations in the fourth quarter of 2025. This project will be connected to the 220 kV Do Luong substation in Nghe An Province to deliver electricity to Vietnam.
The project's import and grid connection investments must be in line with the Power Development Plan (PDP) VIII and relevant regulations. The Power Purchase Agreement (PPA) between the Vietnam Electricity Group (EVN) and the project's investors will be negotiated to ensure that the agreement is economically viable with reasonable power prices and procurement costs, sound legal foundations, defined responsibilities, and technical standards.
The importing electricity from Laos is crucial to boost supply and alleviate power shortages in northern Vietnam in 2025 and beyond. This plan aligns with the Vietnam-Laos agreement and PDP VIII. The Government of Vietnam aims to purchase around 3,000 MW from Laos by 2025, although the actual amount could be around 1,977 MW. The PDP VIII projects that imports from Laos could rise to 5,000-8,000 MW by 2030 and 11,000 MW by 2050. To boost electricity imports from Laos, Minister of Industry and Trade, urged EVN to speed up the construction of the 500 kV Mo Sun to Thach My line in Quang Nam Province and the 220 kV Nam Sum to Nong Cong line.
CHINA DATANG PLANS 500 MW LAOS SOLAR FARM
China Datang Overseas Holdings Company plans to develop a 500 MW solar project in Laos. The utility-scale solar power project will be in Muangxai city and Namor district of Oudomxay province, northern Laos. All the electricity produced will be transmitted through cross-border grid networks and supplied to China. This project is the third large-scale renewable energy project that has been proposed by Datang. The state-owned company has already been developing the 912 MW Pak Beng hydropower plant in Oudomxai and the 684 MW Sanakham hydropower project in Sainyabuli province in northwest Laos.
CGN, through its subsidiary CGN Energy Technology (Laos) Company, will build a portfolio comprising wind, solar, hydroelectricity and battery storage projects in Oudomxay, Phongsaly and Luang Namtha.
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CAMBODIA
HSS ENGINEERS TO WORK ON THE PHNOM PENH–BAVET EXPRESSWAY PROJECT
HSS Engineers Bhd’s wholly owned subsidiary HSS Engineering Sdn Bhd has entered into a RM 15 Mn (USD 3.2 Mn) contract agreement with Cambodia’s Ministry of Public Works and Transport(MPWT), Kingdom to provide consultant’s services for the assignment of contract engineer for the Phnom Penh-Bavet Expressway project.
The expressway will have a total length of 135.1 km, linking the Cambodian capital to the Cambodia-Vietnam border crossing in Bavet, Svay Rieng Province. Upon completion, the Phnom Penh-Bavet Expressway will be the kingdom’s second expressway, after the Phnom Penh-Sihanoukville Expressway which opened in 2022.
The four-year contract for the firm to work on the expressway alongside the MPWT and other development partners commences in June 2024, and the agreement is expected to contribute positively to the company’s financial performance in 2024, until the agreement is completed in 2028. The firm is focused on becoming more active in overseas markets, including Cambodia. The new agreement with the MPTW will help the company leverage its extensive engineering consultancy experience from Malaysian projects to expand into Indochinese nations such as Cambodia, Vietnam and Laos.
The project is part of the Chinese state sponsored Belt and Road Initiative (BRI) and represents a key logistics development for regional connectivity between Cambodia and Vietnam, as well as regional links onwards to Thailand, Myanmar and mainland China. The Phnom Penh-Bavet Expressway will also be a prime driver of economic growth for Cambodia broadly, adding that travelling on expressways saves both time and money.
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DEAL SIGNED TO BOOST COOPERATION IN DIGITAL INFRASTRUCTURE BETWEEN SINGAPORE AND CAMBODIA
The Governments of Singapore and Cambodia has signed an agreement to enhance cooperation in digital infrastructure in both countries. The agreement will strengthen ties in trade, investment, financial transparency, and food and water security. Additionally, it will also focus on deepening cooperation in renewable energy (RE) and carbon credits.Â
The agreement on the initiative was signed in July 2023 and aims to catalyse increased cross-border-related financial services between small and medium-sized enterprises of both countries. The initial batch of participating financial institutions is currently being onboarded, with the first live financing transactions set to begin in the second half of 2024. The Monetary Authority of Singapore (MAS) and the National Bank of Cambodia launched the Financial Transparency Corridor (FTC) initiative to facilitate trade and financial services for SMEs, promoting greater business opportunities and financial access between the two countries.
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WORLD BANK APPROVES MAJOR INVESTMENT IN WATER SECURITY FOR CAMBODIA
The World Bank has approved a USD 145 Mn investment to improve water security in Cambodia. This new project, funded by the International Development Association, aims to enhance water supply infrastructure, increase agricultural productivity, and build climate resilience. This project is a significant step towards sustainable water security and increased agricultural productivity in Cambodia.
The project will be implemented over five years by the Ministry of Water Resources and Meteorology and the Ministry of Agriculture, Forestry, and Fisheries. It will enhance water resource management by expanding hydrometeorological stations, updating policies and regulations, preparing climate-informed river basin management plans, and strengthening8 the performance of central and provincial water authorities.
Water supply systems for households and irrigation are to be rehabilitated and upgraded. At the same time, the project will train Famer Water User Communities and provide technical assistance for improved operation and maintenance of infrastructure. With central and provincial departments for agriculture, forestry, and fisheries, measures will be taken to help farmers adopt climate-smart technologies that improve productivity and reduce emissions in agriculture.
List of key transactions - Singapore, Laos and Cambodia  Q2 2024
Source: YOG INFRA, Public Information
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