Infrastructure & PPPs in Singapore, Laos and Cambodia - Q3 2023 Update
YOG INFRA Q3 2023 insights
SINGAPORE took some relevant steps to enable financing of renewable investments; however, also issued tender for a 600 MW gas-fired plant which contrasts with a move to import renewable energy from neighbouring countries. LAOS continues to see international investments, primarily from China; and there is a need to implement the PPP law for upcoming projects via-a-vis G2G or bilateral model for development. CAMBODIA annouced a tangible project pipeline through its Comprehensive Intermodal Comprehensive Master Plan (CIT-MP) with around 50 infrastructure projects and also annouced another 6 clean-energy projects; and next steps are needed for implementation of these initiatives.
Read the latest developments in Infrastructure and PPPs in the three countries in our latst insight.
CMEC DISCUSSES SOUTHEAST ASIAN TIE-UPS WITH INFRA INVESTORS
China Machinery Engineering Corporation (CMEC) is interested in working with a group of international companies on the co-development of renewables projects in Southeast Asia. The state-owned engineering giant held talks with Macquarie's Green Investment Group-owned blue leaf Energy as well as Singapore-headquartered developer Gurin Energy backed by listed New Zealand investor, Infratil about project collaboration in the Philippines as well as in other countries around the world. The interest was expressed during a business trip by CMEC General Manager Fang Yanshui to Singapore.
The Chinese group also met with senior executives with General Electric Power about their existing projects and potential cooperation opportunities in the Philippines, Indonesia, Singapore, and other Southeast Asian countries. The CMEC delegation also held meetings with the renewables arm of Keppel Infrastructure over tie-ups on green projects in surrounding countries.
EMA, SHELL OPEN SINGAPORE’S FIRST CLEAN ENERGY-POWERED SERVICE STATIONS
The Energy Market Authority (EMA) and Shell have opened 3 clean energy-powered service stations in Singapore where drivers can charge their electric vehicle (EV) using 100 percent certified renewable energy (RE).
The stations, located in Tampines, Pasir Ris, and Lakeview, are equipped with a battery energy storage system (BESS) and are monitored and controlled by Shell’s energy management system. Power will be sourced from rooftop solar panels installed at these facilities. The project is in line with the Singapore Green Plan 2030, which aims to increase the deployment of solar energy.
MPA INVITES PROPOSALS TO BUILD ELECTRIC HARBOURCRAFTS IN SINGAPORE
The Maritime and Port Authority (MPA) has issued an expression of interest (EOI) inviting proposals to design and promote the adoption of fully electric harbour craft (e-HC) in Singapore. The EOI will focus on the electrification of the smaller harbour craft, ranging between 20 to 40 tonnes and having an overall length between 10 to 20 metres. Currently, 400 such vessels are deployed in the Port of Singapore.
The EOI will allow MPA to evaluate and validate proposals for optimal e-HC reference designs. The designs will include vessel structures for efficiency, integrated battery management and energy storage systems (ESS).
SINGAPORE LTA TO BUILD 550-CAPACITY BUS DEPOT
The Land Transport Authority (LTA) has announced plans to build a 550-capacity bus depot in Pasir Panjang, Singapore. In line with this, the agency has launched a construction tender for the facility. The construction is scheduled to begin in 2024 and will be completed by 2029.
The bus depot will feature a 7-storey main building, multi-storey quarters for transport workers and other ancillary buildings. The main building will be equipped with facilities needed for daily bus operations, repair, maintenance and parking, chargers for electric buses and a rooftop solar PV system. Once completed, the Pasir Panjang Bus Depot will be the 11th bus depot commissioned by the LTA under the Bus Contracting Model (BCM).
SINGAPORE MONETARY AUTHORITY TO INCREASE CLIMATE TRANSITION INVESTMENT
The Monetary Authority of Singapore (MAS) has allocated about 2% of its portfolio, or slightly over SGD 8 Bn (USD 5.92 Bn), to a climate transition program. The central bank has tilted part of its equities portfolio towards less carbon-intensive companies rather than excluding entire carbon-intensive sectors. This approach strikes a balance between reducing the portfolio’s carbon intensity while continuing to support companies that are transitioning to lower carbon intensity.
The MAS will scale up its climate transition program as it gains confidence in the effectiveness of the climate indices it has used. The program is one of the steps the MAS is taking to reduce the carbon intensity of its equity’s portfolio by up to a targeted 50% by 2030.
SINGAPORE SEEKS PROPOSALS FOR 600 MW NEW GENERATION CAPACITY
Singapore’s Energy Market Authority (EMA) has issued a request for proposal (RFP) to build, own, and operate a combined cycle gas turbine (CCGT) project with a minimum capacity of 600 MW by the end of 2027. The plant needs to be operational by 2028. The RFP is part of a new centralized process to facilitate and guide private investments in new generation capacity through a competitive tender.
The EMA will implement an enhanced regulatory framework for electricity retailers to strengthen the competitive market structure.
Retailers will be required to:
have a tangible net worth of at least SGD 1 Mn (USD 749,668) at the time of license application or renewal, to ensure that they are credible and have sufficient financial standing.
seek the EMA’s approval to appoint key appointment holders, to ensure that the individuals leading and managing the companies are fit and proper.
hedge at least 80% of their retail contract position and provide a performance bond for any unhedged position, to increase resilience against market volatility; and
protect consumers against premature termination of retail contracts.
SPIC PLANS LAOTIAN RENEWABLES COMPLEX FOR SUPPLY TO CHINA
China Power International Holding, a unit of State Power Investment Corporation, will develop a renewables portfolio in the northwest Oudomxay province of Laos. The Beijing-based power group signed an agreement with the Laotian energy and investment ministries, as well as the Oudomxay provincial government on the project, which will cover an area of 4.49 Mn hectares. The first phase of this Oudomxay Renewables Base Project will feature the development of a 500-1,000 MW solar power station. Construction will commence in 2024 with a target commissioning date in 2025.
The Chinese group is now conducting a feasibility study, while the project will cover Xay, Namo, Nga and Beng districts of Oudomxay. SPIC is also considering wind investment in other parts of Laos. The electricity generated from this portfolio will be supplied to the China Southern Power Grid-owned grid networks via a 500 kV China-Laos power transmission line. This will address the power shortages in regions covered by China Southern Power Grid and deliver economic benefits to Laos.
CHINESE STATE-BACKED DEVELOPER SIGNS LAOS-CAMBODIA TRANSMISSION LINE CONCESSION
A unit of Yunnan province-owned Yunnan Energy Investment Group has signed a concession agreement with the Laotian government to build a power transmission line in a public-private partnership. The USD 149 Mn project will transmit more than 3.2 Bn kWh of electricity per year and will be the first 500 kV cross-border, high-voltage transmission line between Laos and Cambodia.
Yunnan Energy Investment Company signed a shareholder agreement with the Laotian central utility, Électricité du Laos (EDL), its PPP partner. The Export-Import Bank of China is evaluating possible financing. The line will run the Champasak and Attapeu provinces bordering Cambodia. A joint venture between Yunneng International Investment Company and Electricite du Laos (EDL) signed a concession agreement with the Laotian government on the project that will run through southern Laos from Khong district of the Champasak province to Attapeu province bordering Cambodia.
CGN AND SPIC TO DEVELOP RENEWABLES PROJECTS IN LAOS
China General Nuclear (CGN) and the State Power Investment Corporation have signed agreements with the Ministry of Planning and Investment in Laos to develop clean power projects in the Southeast Asian country. CGN, through its subsidiary CGN Energy Technology (Laos) Company, will build a portfolio comprising of wind, solar, hydroelectricity and battery storage projects in Oudomxay, Phongsaly and Luang Namtha provinces. The assets will all supply power to China.
SPIC, through its unit China Power International Holding, will build a solar portfolio comprising of plants in the Namor and Meuang Xay counties in Oudomxay province. The plants will also supply power to China. The first phase of construction is scheduled to start in early 2024 and China Power aims to commission the assets in 2025.
SPIC PLANS LAOTIAN WIND FARM
A unit of China's State Power Investment Corporation (SPIC) is looking to develop an onshore wind farm in southwest Laos. SPIC Yunnan has been assessing the feasibility for the project in Paksong district and there is a potential to reach up to 500 MW, producing more than 1 Bn kWh of electricity annually. The project will have an investment of up to USD 700 Mn. The total capacity is still subject to changes as the company is in the midst of wind speed surveys to work out an accurate design.
Laos has been a popular investment destination in Southeast Asia for Chinese renewables investors. In October 2022, China General Nuclear (CGN) announceda partnership with the Laotian government for a large-scale renewable power project integrating wind, solar, hydro, storage, and other green sources.
GOVERNMENT OF CAMBODIA GREENLIGHTS 670 MW OF CLEAN ENERGY PROJECTS
The Government of Cambodia has approved plans for 6 clean-energy projects, with a combined capacity of 670 MW. The projects approved includes 4 solar energy facilities including Lucky Solar Power Company Limited’s 80 MW plant Prey Veng, a 150 MW facility owned by Snetec Company Limited in Pursat, a 60 MW plant in Svay Rieng, and a 60 MW facility in Kampong Chhnang provinces.
Both hydropower projects will be located in Koh Kong province and include a 150 MW site owned by Meteuk Hydropower Company. Khmer Electrical Power Company Limited’s 70 MW Stung Russey Chrum Kandal and 100 MW Stung Veal Thmor Kambot are counted as a single venture. Once operational, power generated from these facilities will be key in stabilizing energy prices and supply in Cambodia.
List of Key Transactions - Laos Q3-2023
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