YOG INFRA Q3 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 bold steps to electricity its public transport system; and developing innovative clean energy proejcts such as zeo-carbon bunkering apart from significant progress on electricity imports from other ASEAN countries. LAOS has also launched trials of EV buses across the country, along with development of new solar and wind projects. CAMBODIA has approved 23 new investment projects in the power sector for the period 2024-2029 with an estimated capex of USD 6 Bn, and many of such projects are envisaged to be implemented via PPPs.
Read the latest developments in Infrastructure and PPPs in the three countries in our latest insight.
JULY 2024
SINGAPORE
SINGAPORE SHORTLIST TWO CONSORTIA FOR ZERO-CARBON BUNKERING Singaporean authorities have selected a group led by Keppel Infrastructure, and another jointly led by Sembcorp and Singapore (SLNG) for a low or zero-carbon ammonia project on Jurong Island.
The project will aim to generate 55 MW to 65 MW from imported low or zero-carbon ammonia via direct combustion in a combined cycle power plant. It will also facilitate ammonia bunkering at a capacity of at least 100,000 tonnes per annum, starting with shore-to-ship bunkering followed by ship-to-ship bunkering,
The project is being jointly procured with the Maritime and Port Authority of Singapore. The bunkering companies in the consortia are Itochu Corporation, Nippon Yusen Kabushiki Kaisha and Sumitomo Corporation. One of the two bidders will be selected as the lead developer of the project after the next phase of evaluation. The authorities aim to declare the name of the developer in Q1 2025.
GSK SIGNS A 10-YEAR ENERGY DEAL WITH SEMBCORP IN SINGAPORE
GlaxoSmithKline (GSK) has signed a 10-year energy deal with Sembcorp in Singapore. This agreement will commence in January 2025 and all three of GSK’s global manufacturing sites in Singapore will be powered entirely by renewable electricity. The deal includes renewable energy (RE) certificates from Sembcorp’s solar projects in Singapore supplemented by the 3% generated by GSK’s on-site solar panels.
This agreement will provide up to 87,600 MWh of renewable electricity annually, equivalent to around 36,500 metric tons of CO2 and boosting GSK’s global renewable electricity usage by 9 %. This deal underscores GSK’s continued investment and commitment to Singapore, where it has been present since 1959. The company has invested more than EUR 1.5 Bn (USD 1.66 Bn) in Singapore.
Sembcorp signed two separate agreements to acquire a total of 428 MW of wind assets in China and India. Sembcorp’s wholly owned subsidiary, Sembcorp Energy (Shanghai) Holding Co Ltd, has signed an agreement with Envision Energy Co Ltd to acquire 100% of the share capital in Qinzhou Yuanneng Wind Power Co. Ltd, (Qinzhou Yuanneng) for an equity consideration of approximately USD 130 Mn.
VOLT TO DEPLOY SEA’S LARGEST EV CHARGING HUB IN SINGAPORE
Volt, a subsidiary of Keppel Infrastructure, has announced plans to deploy Southeast Asia’s (SEA) largest electric vehicle (EV) charging hub in Singapore. The public fast-charging hub will be located on Jalan Papan, Jurong, and will be operated by Volt for up to 15 years. The site will feature up to 80 DC charging points.
Volt’s DC chargers will have peak outputs of 120 kW and 360 kW, allowing high-end EVs with 800-volt or higher-voltage batteries to charge efficiently. The project will be constructed in multiple phases, beginning with the installation of five 360 kW DC chargers, which can collectively charge up to 30 electric buses. The first phase is expected to be operational in the Q2 of 2026. Upon full completion, the hub will enable simultaneous charging for up to 80 electric buses (e-buses), with 360 kW charging points capable of charging electric cars in just 10 minutes.
Setsco Services, a subsidiary of VICOM, will provide the electrical infrastructure and facilities for Volt’s EV charging hub. Keppel will use AI and machine learning to remotely monitor and optimize the hub through an intelligent Operations Nerve Centre (ONC) located in Changi Business Park. This initiative aligns with Singapore’s Green Plan 2030, which aims to deploy 60,000 EV charging points and convert up to half of the public bus fleet to electric models.
MOU SIGNED TO DEVELOP THE NONGSA-CHANGI SUBMARINE CABLE BETWEEN INDONESIA AND SINGAPORE
PT Telekomunikasi Indonesia International (Telin) has signed a memorandum of understanding (MoU) with BW Digital to develop the Nongsa-Changi submarine cable system, connecting Batam in Indonesia with Singapore. The 50-km-long cable will feature at least 24 fibre pairs. The cable aims to enhance digital infrastructure, supporting data-intensive services and high-density AI applications, with operations expected to begin by Q4 2025.
Telin operates an extensive infrastructure, including 250,140 km of cable systems and 58 Points of Presence in 26 countries. BW Digital, a subsidiary of BW Group, focuses on developing digital infrastructures in the Asia-Pacific region. This project will improve connectivity and support the growing demand for communication links between Batam and Singapore.
CAMBODIA
WORKS ON THREE NATIONAL ROADS IN CAMBODIA TO BE COMPLETED IN 2024
The Ministry of Public Works and Transport (MPWT) has announced plans to complete the development of three major national roads of Cambodia in 2024. The roads include the 114-km-long National Road 71C, which connects Kampong Cham to Tbong Khmum, and is scheduled for completion by mid-2024. The project is expected to be completed by October 2024, and maintenance will be carried out by the Shanghai Construction Group (SCG) and Guangzhou Wang.
Two other national roads are nearing completion in 2024. National Road 31, connecting National Road No. 3 at Bek Kus point in Tram Kak district, Takeo province, to the Ton Horn junction in Kampong Trach district, Kampot province, is set to be finished. National Road 33, linking Kampong Trach district to Kampot town through Kep province, will also be completed.
These roads are essential for connecting Phnom Penh, Kandal, Kampong Speu, and Takeo to the coastal provinces of Kep and Kampot. They are vital freight routes to the Prek Chak International Gate in Kampong Trach district and will play a significant role in the transportation of goods to and from the port along the Funan Techo Canal Project. The canal project will include several satellite ports, particularly in Angkor Chey and Banteay Meanchey, and a logistics centre in Kampong Trach district, Kampot province.
CRBC COMPLETES STUDY FOR PHNOM PENH-SIEM REAP-POIPET EXPRESSWAY
The China Road and Bridge Corporation (CRBC) has completed the feasibility study for the proposed Phnom Penh–Siem Reap–Poipet Expressway which will enhance connectivity and boost economic growth in Cambodia. The study covers traffic volume, hydrology, geotechnical conditions topography, and cultural and natural reserves. The expressway will begin at Win-Win Boulevard in Phnom Penh and extend to Poipet City in Banteay Meanchey Province.
The project will be executed in two phases:
Phnom Penh to Siem Reap, covering 249 km and costing USD 2.5 Bn
Siem Reap to Poipet, spanning 151 km with an estimated cost of USD 1.7 Bn.
CRBC is now preparing a comprehensive report to submit to the government of Cambodia for review. This marks a significant milestone in the expressway’s development, reflecting the government’s commitment to improving transportation and logistics and enhancing access to major tourist sites and the Cambodia-Thailand border.
CRBC is also responsible for Cambodia’s other major expressway projects, including the operational Phnom Penh–Sihanoukville Expressway, which involved a USD 2 Bn investment, and the Phnom Penh–Bavet Expressway currently under construction, with an investment of about USD 1.7 Bn.
THE GOVERNMENT OF CAMBODIA OUTLINES PLAN TO INCREASE EV ADOPTION
The Government of Cambodia has announced plans to increase the deployment of electric vehicles (EVs) by 2030, targeting 30,000 electric cars, 720,000 electric scooters, and 20,000 three-wheeler EVs. This plan is outlined in the country’s National Policy on the Development of EVs 2024-2030.
It is operating an EV cost only USD 2.35 for 100 km, compared to USD 8.71 for petrol or diesel vehicles. The Cambodia has registered 1,614 electric cars, 914 electric scooters, and 440 three-wheeler EVs, with 21 EV charging stations available. To encourage EV adoption, the government has reduced import duties on EVs by about 50 % since 2021, making them more affordable compared to traditional internal combustion engine vehicles.
LAOS
GREEN BUS TRAILS LAUNCHED IN SEVERAL PROVINCES IN LAOS
The Government of Laos has initiated green bus trials across several provinces to enhance public transportation infrastructure and reduce traffic congestion. This initiative is part of a memorandum of understanding (MoU) between the Government of Laos and South Korea-based Booyoung Lao Company Limited which aims to provide 600 buses to improve public transportation across the country.
In Attapeu Province, the Provincial Department of Public Works and Transport partnered with Khamkai Transportation Service Company to launch trials with 10 green buses in June 2024. These buses operate on routes from Samukkhixay district bus station to the International Border Crossing and various villages and urban areas, providing frequent service throughout the day.
Champasack Province introduced green bus services in June 2024, with 16 routes connecting Pakse district urban areas with surrounding villages. Xaysomboun Province began a trial with 20 buses in May 2024, initially running free of charge on Tuesdays and Thursdays. These buses cover urban areas including Aom, Ao, Nammo, and Namyone villages.
Bolikhamxay Province allocated 20 buses across various routes, including key routes like Paksan-Vientiane Capital and Paksan-Viengthong district. The Lao government aims to enhance public transport infrastructure, contributing to the country’s overall development and environmental goals.
SPIC UNIT EVALUATING 200 MW LAOTIAN SOLAR FARM DEVELOPMENT
A subsidiary of State Power Investment Corporation (SPIC) is evaluating the development of a 200 MW solar farm in Champasak province in southern Laos. SPIC Yunnan International Power Investment Company plans to hire advisors to assess the feasibility and potential risks associated with the project.
SPIC's recent contract in Laos was in September through another subsidiary - China Power International Holding - with the Ministry of Planning and Investment, to develop clean power projects. This requires China Power International and China General Nuclear to jointly build a solar portfolio in the Namor and Meuang Xay counties in Oudomxay province. The plants will also supply power to China.
Chinese power project developers present in Laos include Yunnan Provincial Energy Investment Group Company, which has built a transmission line connecting Attapeu province to the Cambodian border. The line is intended to transmit renewable electricity produced in Laos to neighbouring countries.
YUNNAN PROVINCIAL ENERGY PLANS 50 MW LAOS SOLAR PROJECT
Yunnan Provincial Energy Investment Group Company is planning to build a 50 MW solar farm in central Laos. The project, with an associated 10 MW kWh storage facility and will generate 100 Mn kWh annually. Yunnan Provincial Energy has signed an agreement with the Laotian government to develop the project in Khammouane province.
The Yunnan provincial government-owned company is already present in Laos, having developed a transmission line connecting to the Cambodian border. The line is intended to transmit clean power to neighbouring countries.
AUGUST 2024
SINGAPORE
SINGAPORE LTA ALLOCATES SGD 900 MN TO ENHANCE ITS PUBLIC BUS NETWORK BY 2032
Singapore Land Transport Authority (LTA) has announced plans to invest up to SGD 900 Mn (USD 691.28 Mn) over the next 8 years by 2032 to enhance its public bus network. This initiative, part of the new Bus Connectivity Enhancement Programme, aims to improve bus services in response to changing travel patterns and increased demand in new and mature housing estates. The plan includes the introduction of new bus routes, more peak-hour express services, and express feeder buses with fewer stops to reduce travel time.
The funding will be used to purchase additional buses, hire more bus drivers and maintenance staff, and build new infrastructure such as bus stops. This expansion will be carried out in phases, with enhancements tailored to the needs of different communities across the country.
Some of the key projects include a new bus service planned for Yishun East by the end of Q3 2024 to connect residents with Khatib MRT station. In December 2024, an express feeder service will link Tampines North residents to Tampines MRT station more directly. Additional peak-hour express services will also be introduced, including a new City Direct Service from Punggol expected to start in October 2024. In Toa Payoh East, a new service will connect residents with the Thomson-East Coast and Circle lines at Caldecott MRT station by the end of 2024.
SINGAPORE PUB TO REPLACE DIESEL-POWERED VEHICLES WITH EVs BY 2025
Public Utilities Board (PUB) has announced plans to replace 47 diesel-powered vehicles with electric vehicles (EVs) by 2025 as part of its sustainability efforts in Singapore. Contracts worth nearly USD 5 Mn have been awarded to two subsidiaries of Cycle & Carriage (C&C) for the supply of these EVs, including vans and pickup trucks.
This transition aligns with Singapore’s goal to phase out internal combustion engine vehicles by 2040. The new EVs will replace 47 existing vehicles and follow the deployment of an initial batch of six EVs in 2021. PUB’s move is part of a broader public sector initiative under the GreenGov.SG sustainability plan, which mandates that all new vehicles procured by the government be clean-energy models with no tailpipe emissions.
PUBLIC TRANSPORT INFRASTRUCTURE TO BE TRANSFORMED IN SINGAPORE
The Government of Singapore has announced plans to transform its public transport infrastructure, with a range of new initiatives aimed at improving travel efficiency, accessibility, and overall commuter experience. Key initiatives include a shift to the SimplyGo payment system. This modernised system will replace older fare payment methods, such as the NETS FlashPay and unupgraded EZ-Link adult cards, which will no longer be accepted for fare payments.
The transition to SimplyGo is part of the Land Transport Authority’s (LTA) broader strategy to encourage the adoption of more efficient and updated fare payment methods. Commuters using legacy stored-value cards can continue to use them for non-public transport expenses, such as Electronic Road Pricing (ERP) charges and parking fees.
In addition to enhancing local transport, Singapore is also improving its cross-border transportation network with the introduction of bus services between Woodlands and Johor Baru. The Causeway Link buses will operate at frequent intervals to ease travel demand following the reopening of the Singapore-Malaysia land borders.
KEPPEL SIGNS USD 1 BN DEAL WITH ADB FOR ENERGY TRANSITION PROJECTS ACROSS APAC
Keppel has signed a USD 1.048 Bn memorandum of understanding (MoU) with the Asian Development Bank (ADB) and Enterprise Singapore (EnterpriseSG) to focus on energy transition and environmental sustainability projects across Asia and the Pacific (APAC). The collaboration aims to develop and operate projects in areas such as decarbonisation, renewable energy (RE), electric mobility, green buildings, water treatment, and waste-to-energy (WtE), targeting a reduction of at least 1 Mn tonnes of carbon emissions annually.
The partnership will also explore blended finance opportunities, potentially using concessionary financing to improve the bankability of projects and attract private investment. EnterpriseSG will support Keppel in finding partners, navigating regulations, and securing funding for projects in over 35 countries. Initial efforts will target Southeast Asia, with a total project value exceeding USD1.048 Bn expected between 2025 and 2030.
CAMBODIA
RCC ADDS 25 NEW RAIL WAGONS TO ITS FREIGHT FLEET IN CAMBODIA
Royal Railway Cambodia (RRC), a subsidiary of the Royal Group, has imported 25 new flat rail wagons from Malaysia to enhance its freight service capabilities. The shipment aligns with Royal Group’s plan to expand the fleet by 200 wagons in Cambodia. This move aims to improve the capacity and efficiency of the country’s rail services.
In addition to the recent acquisition from Malaysia, Royal Railway has also expanded its fleet with 11 Diesel Multiple Units (DMUs) from Japan at the beginning of 2024. These DMUs are set to operate on the Phnom Penh-Sihanoukville and Phnom Penh–Poipet routes. The Kingdom’s rail system, originally established during the French colonial era, comprises two main lines: the Northern Railway from Phnom Penh to Poipet and the Southern Railroad, connecting Phnom Penh to Sihanoukville.
GOVERNMENT OF CAMBODIA TO CONSTRUCT THE FUNAN TECHO CANAL TO ENHANCE ITS LOGISTICS INFRA
The Government of Cambodia has announced plans to construct the Funan Techo Canal to enhance the country’s logistics infrastructure. The 180 km-long canals will connect Phnom Penh Autonomous Port to Kep City and the Gulf of Thailand, providing a direct maritime route and reducing Cambodia’s reliance on the ports of Vietnam. The USD 1.7 Bn project is expected to be operational by 2028.
This new canal is anticipated to boost the logistics industry, particularly in Thailand’s eastern region. It is expected to increase cargo traffic to Laem Chabang Port in Chonburi province, which is expanding. The ongoing Phase 3 expansion of Laem Chabang Port aims to increase its capacity from 11 Mn to 18 Mn twenty-foot equivalent unit (TEU) containers annually. Once fully operational, the canal is expected to reduce Cambodia’s logistics costs by up to 30% and enhance its connections with other countries.
Additionally, the increased freight traffic to the Gulf of Thailand is expected to create demand for Thailand’s proposed Land Bridge project in Chumphon and Ranong provinces. This THB 1 Trn (USD 29.64 Bn) mega-project involves the construction of deep-sea ports and the transformation of transport routes to link these ports, aiming to reduce shipping congestion in the Malacca Straits and cut travel time for cargo.
LAOS
LAOS HYDRO DEVELOPER SEEKS PARTNER FOR USD 23 MN PROJECT
Hydro Lao Company is looking for a partner to co-develop a USD 23 Mn hydropower project in southern Laos. It wants the partner to provide funding and construction support without revealing further financial details. The developer has already obtained regulatory approvals. Hydro Lao has signed an MOU with the Attapeu provincial government. The project will be located on the Houay Phok River in the Phou Louang Mountain area of the province.
The electricity produced will be used by Samakhixay town. The project will also channel water from the river to nearby farmlands and to urban areas. Samakhixay is the capital of Attapeu, which is the southernmost province of Laos, neighbouring Vietnam. Lao has a hydropower potential of more than 18 GW, compared with the current installed capacity of 7 GW.
LAOS-BASED 600 MW WIND POWER PROJECT TO TRIAL VIETNAM SUPPLY IN DEC
Laos’s 600 MW Monsoon wind power project is nearing completion and set to begin trial operations late December. The wind power project, the first one in Laos and one of the biggest in Southeast Asia now, is invested in by a consortium comprising firms from Thailand, Hong Kong, Laos, the Netherlands, Japan and Singapore. Notable stakeholders include Thailand’s Impact Electrons Siam Group and BCPG Public Company Limited, Japan’s Mitsubishi Corporation, and Laos’s SMP Consultation Sole Company Limited.
Located in the Laotian provinces of Sekong and Attapeu, the USD 950Mn project features 133 wind turbines and a 22-kilometer transmission line crossing the Vietnam-Laos border.
SEPTEMBER 2024
SINGAPORE
ST ENGINEERING, MAN LAUNCHES NEW ELECTRIC BUS UNIT TO ELECTRIFY SINGAPORE’S FLEET
ST Engineering and MAN Truck and Bus have launched the MAN Lion’s City E, a new single-deck electric bus, as a part of the electrification of the public bus fleet in Singapore. This bus, the first right-hand drive electric model produced by MAN (Maschinenfabrik Augsburg-Nürnberg AG), features advanced battery technology with a capacity of 480 kWh, allowing it to run longer between charges and carry more passengers.
The bus carries its batteries exclusively on the roof to reduce collision damage and is the first in Singapore to replace side mirrors with digital cameras for enhanced driver safety.
The first unit, purchased by private transport operator Leisure Frontier for SDG 0.6Mn (USD 0.46Mn), will begin service in Q4 2024. ST Engineering, the exclusive distributor of MAN buses in Singapore, has previously supplied over 1,000 diesel buses to the public fleet. This collaboration between ST Engineering and MAN aims to support Singapore’s goal of having half of its 6,000 public buses run on electricity by 2030.
MASTER PLAN LAUNCHED FOR SINGAPORE’S NORTH-SOUTH CORRIDOR
Henning Larsen, in collaboration with Ramboll, Cistri, and others, has launched a master plan for the urban transformation of the North-South Corridor in Singapore. The plan focuses on integrating public transport, active mobility, and community spaces along the 21.5 km corridor.
The North-South Corridor will be divided into four sections: a Community-Industrial segment, an Ecological Loop, a People’s Wellness Corridor, and a Cultural-Heritage segment. The design aims to enhance social connectivity, promote sustainability, and align with Singapore’s vision of becoming a City in Nature. The project will also include public engagement to ensure community involvement in the transformation process.
THE GOVERNMENT OF SINGAPORE TO ISSUE APPROVALS TO IMPORT 1.4 GW OF LOW-CARBON ENERGY FROM INDONESIA
The Government of Singapore has announced plans to issue new conditional approvals (CAs) to import 1.4 GW of low-carbon electricity from Indonesia. This power will be generated from two solar plants, developed by the consortia of TotalEnergies-RGE and Shell-Vena, with a combined project value of approximately USD 20 Bn.
The electricity will be transmitted via a shared subsea transmission cable and will be supported by a battery energy storage system (BESS). This move builds on previous approvals in 2023 for importing 2 GW of low-carbon electricity from Indonesia, aimed at boosting Singapore’s clean energy supply.
WORK SCHEDULED TO START ON CHANGI AIRPORT’S FIFTH TERMINAL IN 2025
The Government of Singapore has announced plans to commence construction of the fifth terminal of Changi Airport in Q1 2025. The new terminal will expand the airport’s capacity by 50 Mn passengers annually, increasing its total capacity to 140 Mn by 2030.
Long Thanh International Airport in southern Vietnam is under construction and will commence passenger operations in September 2026. The airport will initially handle 25 Mn passengers annually and will eventually serve 100 Mn passengers, upon the completion of all three phases. Moreover, Southeast Asia (SEA), including nations like Thailand, Vietnam, and Malaysia, will double its total annual passenger handling capacity from 336 Mn people to at least 653 Mn people by 2030.
SINGAPORE-BASED FIRM TO INVEST FUNDS TO DEPLOY SOLAR ENERGY INFRASTRUCTURE IN THE PHILIPPINES
Singapore-based Clime Capital Management Private Limited has announced plans to invest up to USD 10 Mn in Upgrade Energy Philippines to deploy solar energy infrastructure across Philippines. This funding is provided through the Southeast Asia Clean Energy Fund (SEACEF) 2.
Upgrade Energy, which began with its first rooftop solar installation in 2015, aims to exceed 50 MW of installed solar capacity by the end of 2024. The company is also planning to develop 700 MW of solar projects over the next four years, including commercial, industrial, and utility-scale projects such as a solar development in Zambales. This investment aligns with the Government of the Philippines’ renewable energy (RE) goals, which seek to increase the share of Renewable Energy (RE) in the country’s power mix to 35 % by 2030 and 50 % by 2040.
ST ENGINEERING LAUNCHES ITS NEW AI-POWERED SMART SHIPYARD IN SINGAPORE
ST Engineering has launched its new AI-powered smart shipyard at 55 Gul Road in Singapore, replacing the Tuas Yard, which closes at the end of 2024. The Gul Yard, acquired for SDG 95 Mn (USD 74.17Mn), is double the size of its predecessor and features advanced 5G-enabled digital infrastructure. AI technology developed in-house improves efficiency through integrated yard management, predictive maintenance, and real-time monitoring.
The yard, focused on both navy and offshore renewable sectors, will merge with ST Engineering’s Benoi Yard for seamless operations. Safety measures include drones, smart wearables, and hazard detection systems. The company is also investing in sustainable practices with plans to lower carbon emissions by 2034 using renewable energy (RE) sources like ammonia, biofuel, hydrogen, and solar power.
FUNDS WORTH SGDS 2.1 BN WERE ALLOCATED FROM GREEN BOND PROCEEDS FOR JRL AND CRL PROJECTS IN SINGAPORE
The Ministry of Finance of Singapore has allocated SDG 2.1 Bn (USD 1.63Bn) from green bond proceeds for the Jurong Region Line (JRL) and Cross Island Line (CRL) projects in FY 2023. This funding comes from SDG 1.7 Bn (USD1.32 Bn) issued in August 2022 and an additional SDG 0.4 Bn (USD 0.31Bn) from a reopened tranche in September 2023. The total issuance of the 50-year Green Singapore Government Securities (Infrastructure) bond is SDG 2.8 Bn (USD 2.18 Bn), with remaining unallocated proceeds expected to be fully utilised by the end of FY 2025.
These projects are vital for Singapore’s goal of achieving a 75 % mass public transport modal share and aim to reach net-zero emissions by 2050. Once operational, the JRL and CRL are expected to result in annual carbon-dioxide savings of 100,000 to 120,000 tonnes of CO2 equivalent, comparable to removing over 22,000 cars from the roads, leading to an 81 % reduction in emissions compared to the baseline scenario.
CAMBODIA
MPWT AND AIIB TO CONDUCT FEASIBILITY STUDIES FOR SUBWAY NETWORK IN CAMBODIA
The Ministry of Public Works and Transport (MPWT) of Cambodia has signed two memorandums of understanding (MoUs) with the Asian Infrastructure Investment Bank (AIIB) to conduct feasibility studies on a subway network in Phnom Penh and improve infrastructure connectivity in Cambodia’s northeastern region.
The parties are committed to the projects’ implementation. Separately, the governments of Cambodia and China have agreed to revisit their 2017 MoU to expand bilateral cooperation.
CAMBODIA APPROVES USD 5.79BN INVESTMENT IN 23 ENERGY PROJECTS TO ENHANCE POWER SECURITY AND CLEAN ENERGY BY 2030
The Cambodian Council of Ministers have approved 23 new investment projects in the power sector for the period 2024-2029, aimed at addressing the country’s ongoing power shortages. The 23 energy development projects comprise 12 solar power projects, 6 wind power projects, 1 combined solar-biomass project, 1 gas-fired (LNG) power plant, 1 hydropower project, and 2 energy storage facilities. Collectively, 21 of these projects will serve as power stations, with a combined capacity of 3,950 MW, while the two large-scale storage projects will have a capacity of 2,000 MW.
The total investment for these projects is estimated at USD 5.79 Bn. The projects will play a crucial role in meeting Cambodia’s growing electricity demand. It will ensure a reliable and affordable power supply to consumers across the country, contributing to the stability of the national grid. These projects will enhance Cambodia’s energy security by reducing reliance on imports and boosting domestic clean energy sources like solar, wind, hydropower, and biomass. They align with Cambodia’s goal of achieving 70 % clean energy by 2030 while contributing to Cambodia’s environmental goals and global greenhouse gas reduction commitments.
The projects are expected to create thousands of jobs, particularly in provinces such as Battambang, Pursat, Kampong Chhnang, Ratanakkiri, Mondulkiri, Sihanoukville, Kampong Cham, and Prey Veng, providing on-site training and modern skills development for Cambodian workers.
The state will also benefit from tax revenues generated by these 23 investment projects, which will include income tax, pre-allocation tax, withholding tax, and taxes on dividend distribution during the operational phase.
OMS GROUP INVESTS USD 300 MN TO EXPAND SUBMARINE CABLE NETWORK IN SEA
OMS Group has announced a USD 300 Mn investment to expand its submarine cable and terrestrial infrastructure in Southeast Asia (SEA). This initiative aims to improve regional connectivity and cater to the growing demand for digital services.
Key projects include acquiring ownership of submarine cables and building backhaul infrastructure from cable landing stations to data centres. Project MIST, a significant subsea system linking Malaysia, India, Singapore, and Thailand, spans 8,100 km with a capacity of 216 TB. OMS is focusing on expanding its presence in Southeast Asia and addressing the rising need for data and bandwidth.
SINGAPORE’S EMA TO ENHANCE LAO PDR-THAILAND-MALAYSIA-SINGAPORE POWER INTEGRATION PROJECT
The Energy Market Authority (EMA) has extended Keppel’s electricity importer license to 2026, facilitating the enhancement of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP). This move was in line with, Tenaga Nasional Bhd (TNB) signing an agreement with Keppel Electric Private Limied to supply up to 100 MW of electricity to Singapore. Additionally, TNB also inked a cross-border power trade interconnection agreement with SP Power Assets Limied to ensure stable electricity transmission between Malaysia and Singapore.
Phase 2 of the LTMS-PIP will increase the electricity trading capacity from 100 MW to 200 MW, enabling multilateral and multidirectional power trade, with additional electricity imports from Malaysia. This development supports the advancement of the ASEAN Power Grid (APG), promoting regional energy integration to meet growing demand. The LTMS-PIP, launched in 2022, represents the first multilateral cross-border electricity trading of renewable energy (RE) in ASEAN.
LAOS
MOU SIGNED TO EXPLORE RENEWABLE PROJECTS IN ASEAN COUNTRIES
Founder Energy Sdn Bhd (FESB), a subsidiary of Reservoir Link Energy Bhd (RLEB) has signed a memorandum of understanding (MoU) with MN Power Transmission Sdn Bhd (MNPTSB) to explore renewable energy (RE) projects such as solar, biogas, and biomass in Malaysia and other ASEAN countries.
The MoU focuses on collaboration in identifying and developing these projects, sharing technical expertise, and taking specific actions for implementation. This partnership is expected to support RLEB’s expansion in the RE sector and contribute to future growth.
LAOS SIGNS CGN LAOS TAVEN POWER FOR 1 GW SOLAR FARM
The Laos government signed a concession agreement with CGN Laos Taven Power Sole Co., Ltd. for the construction of Phase I of a 1,000 megawatt (MW) solar farm in the northern districts of Xay and Namor, Oudomxay province. This project is a step in advancing renewable energy efforts for both Laos and China.
The solar farm, located near the Laos-China border, aligns with Laos’s goal to increase renewable energy consumption to 30 % by 2025. This initiative is part of the broader Northern Clean Energy Connection project, which aims to bolster energy security and support Laos’s renewable energy development plan. The solar farm is expected to contribute to local economic development, offer more efficient energy sources, and reduce carbon emissions. It will also strengthen the relationship between Laos and China.
The agreement supports the Lancang-Mekong Cooperation scheme, with plans to develop further clean energy projects, including wind and solar farms, across Oudomxay, Phongsaly, and Luang Namtha provinces. The total installed capacity for these projects is anticipated to reach 10 Mn kilowatts. This collaboration highlights a growing drive towards renewable energy in the region, aiming to provide a sustainable energy future and foster international cooperation.
List of key transactions - Singapore, Laos and Cambodia Q3 2024
Source: YOG INFRA, Public Information
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