Infrastructure & PPPs in Singapore, Laos and Cambodia - Q3 2022 Update
YOG INFRA Q3 2022 insights
We see good activity in areas of clean energy transition across SINGAPORE, LAOS and CAMBODIA with a view to move towards respective Net Zero and NDC targets of each economy. Laos and Cambodia need continued support of multilaterals to further enhance PPPs and Singapore is aiming for innovation as a key tool to meet clean energy targets despite limited land area.
Read the latest developments in Infrastructure and PPPs in the three countries in our final insight of Q3 2022 series.
NEFIN PLANS USD 73 Mn INVESTMENT IN SINGAPORE RENEWABLES
Clean energy developer NEFIN Group plans to invest at least SGD 100 Mn (USD 73 Mn) in the next five years to develop renewable energy projects in Singapore. The company, which set up its new Asia Pacific headquarters in Singapore, signed a memorandum of understanding (MoU) with Singapore energy retailer Tuas Power Supply to provide clean energy to consumers in the island nation.
NEFIN will develop solar power projects for commercial and industrial customers in Singapore as well as provide other carbon neutrality solutions. NEFIN will be primarily responsible for investing, developing, and operating the solar power systems, while Tuas Power will secure potential customers.
The partnership with Tuas Power is in line with NEFIN's aim for massive developments within the carbon neutrality solutions market in Singapore, a region that will be a significant player in terms of renewable energy solutions in Asia Pacific.
KEPPEL ENERGY NEXUS WINS FLOATING SOLAR PILOT PROJECT Keppel Energy Nexus - a wholly owned subsidiary of Singapore's Keppel Infrastructure - has received a contract to develop the nation's first membrane-based nearshore floating solar photovoltaic system.
The pilot facility, which will consist of three circular platforms with an installed capacity of 1.5 MWp, will be located off Jurong Island.
In the membrane-based PV system, solar panels are attached directly to large circular reinforced membranes protected by a high-density polyethylene pipe structure surrounding the membrane, which creates a stable and safe platform to withstand rougher sea conditions in a nearshore marine environment.
MITSUBISHI TO OPERATE SINGAPORE EFW PROJECT
Mitsubishi Heavy Industries (MHI) and Mitsubishi Heavy Industries Environmental & Chemical Engineering (MHIEC) will operate an energy-from-waste (EfW) facility in Singapore through TuasOne, the project's special purpose vehicle (SPV). The two companies acquired 75% of the shares in the SPV - which were held by Hyflux - following the start of a liquidation process for Hyflux.
TuasOne was jointly established in 2015 by MHI and Hyflux, and has a 25-year concession to build and operate an EfW plant with a daily capacity to process 3,600 tonnes and generate 120 MW of electricity. The facility will be located in the Tuas district in Southwest Singapore. MHIEC will hold 75% in the SPV and MHI the remaining 25%.
PLANS ANNOUNCED FOR A 1.2 GW WIND FARM IN LAOS
The Government of Laos has announced plans to build a 1.2 GW wind farm in partnership with Savan Vayu Renewable Company and LTM Lao Company. The project is expected to cost around USD 2.15 Bn.
The wind farm will be located in the Lako area of Sepon District, Savannakhet Province. Work on the facility is expected to be completed by the end of 2025. Once operational, a portion of the wind energy generated will be supplied to the local grid while the remaining will be exported, primarily to Vietnam.
THREE NEW DAMS TO BE BUILT FOR THE NAM PHAK HYDROPOWER PROJECT IN LAOS
The Construction Joint Stock Company 47 has signed an agreement with Song Da 5 Joint Stock Company to build the Nam Pha, Nam Phak and Phouphong dams at the Nam Phak hydropower project in Laos. The Nam Phak hydropower project has a total installed capacity of 128 MW. It is located in the southwest of Bolaven Plateau in Champasak province.
Another contract has also been signed for the design and testing of the USD 34.2 Mn Nam Phak hydropower project. Both the contracts are expected to be completed within 4 years.
CAMBODIA PROMULGATES PPP LAW
Cambodia's Ministry of Economy and Finance has promulgated legislation on public-private partnerships (PPPs). The regulation seeks to introduce and manage PPPs in an accountable, transparent, and sustainable manner.
The law is applicable to projects in public infrastructures and services in sectors such as agriculture, science, social affairs, environment, energy, telecommunications, and transportation.
CAMBODIA, UNCDF SIGN MOU ON EXTENSION OF BILATERAL AGREEMENT
The MoU was aimed to extend the existing agreement between the parties on the cooperation on capacity building and financing for the public-private partnership (PPP) mechanism.
The signed MoU, valid for three years, is aimed to enhance and expand the scope of cooperation between the two sides in the past, focusing on support for innovative financing, support for capacity development, support for the dissemination of the Public-Private Partnership Law and related legal documents, support for the development of the PPP project, and support for the establishment of financial support mechanism for PPP projects.
The Ministry of Economy and Finance and UNCDF will continue to work together to support the preparation of a list of proposed Public Investment Projects (PPPs) to contribute to the recovery and promotion of the Cambodian economy.
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