Delayed coal-fired power plant in southern Vietnam secures $980 mln loan from Eximbank Malaysia

By Hai Yen
Sun, June 9, 2024 | 1:35 pm GMT+7

Malaysia-based Toyo Ink Berhad and its wholly-owned Vietnam subsidiary, Song Hau 2 Power Company Ltd., have secured a $980 million loan from Eximbank Malaysia to develop a $3 billion coal-fired power plant in southern Vietnam.

Representatives of Toyo Ink Berhad and Song Hau 2 Power Company Ltd. ink an agreement with Eximbank Malaysia for a $980 million loan on June 7, 2024. Photo courtesy of Nang Luong Vietnam (Vietnam Energy) magazine.

Representatives of Toyo Ink Berhad and Song Hau 2 Power Company Ltd. ink an agreement with Eximbank Malaysia for a $980 million loan on June 7, 2024. Photo courtesy of Nang Luong Vietnam (Vietnam Energy) magazine.

The financing will be used for the design, equipment purchase, construction, and operation of the long-delayed Song Hau 2 thermal power plant in Chau Thanh district, Hau Giang province.

Singapore-based i-Power Solutions Pte Ltd will arrange capital for equipment purchases for the project via Eximbank Malaysia.

Hau Giang province and Toyo Ink Behard signed a facility agreement for the 2,120 MW project under the build-operate-transfer (BOT) format in December 2015.

Vietnam’s Power Engineering Consulting JSC 2 (PECC2) and Sunway established the Sunway-PECC2 consortium as the engineering, procurement and construction (EPC) contractor for the project in December 2022, the Malaysian investor clarified in a filing sent to the Bursa Malaysia stock exchange in May.

The project missed the initial deadline for completion in Q2/2022, partly due to the investor’s inability to meet its capital obligations.

The power plant is one of five coal-fired power projects prioritized in the national Power Development Plan VIII (PDP VIII). The Vietnamese Ministry of Industry and Trade has extended its deployment deadline to June 2024, failing which it could be terminated.

Comments (0)
  • Read More
Vietnam dong unlikely to depreciate strongly vs. US dollar in near term: broker

Vietnam dong unlikely to depreciate strongly vs. US dollar in near term: broker

Depreciation pressure on the Vietnamese dong versus the U.S. dollar is likely to wane, and the USD/VND rate may not increase as strongly and fast as before, says Vietcombank Securities (VCBS).

Banking - Tue, November 12, 2024 | 2:31 pm GMT+7

Taiwan electronic firm Lite-On okays $132 mln construction budget for Vietnam plant

Taiwan electronic firm Lite-On okays $132 mln construction budget for Vietnam plant

Taiwan-based Lite-On Technology Corporation, a world-leading provider in optoelectronics and power management, has approved a construction budget of $132 million for its factory in Vietnam.

Companies - Tue, November 12, 2024 | 12:17 pm GMT+7

Thailand cuts palm oil content in biofuel

Thailand cuts palm oil content in biofuel

Thailand's Ministry of Energy announced last Friday that it will reduce the palm oil content in its biofuel from 7% to 5% to deal with rising palm oil prices.

Southeast Asia - Tue, November 12, 2024 | 11:09 am GMT+7

Vietnam urges Toyota, Honda to switch to producing hybrid vehicles

Vietnam urges Toyota, Honda to switch to producing hybrid vehicles

Toyota and Honda should draft detailed plans to switch their production in Vietnam from petroleum vehicles to hybrid ones, said Tran Duy Dong, Chairman of Vinh Phuc province.

Industries - Tue, November 12, 2024 | 10:56 am GMT+7

Vietnam Party leader holds phone talks with US President-elect

Vietnam Party leader holds phone talks with US President-elect

Vietnam's Party chief To Lam talked over the phone with President-elect of the U.S. Donald Trump on the evening of November 11.

Politics - Tue, November 12, 2024 | 9:11 am GMT+7

Donald Trump won. What’s next for Vietnam real estate market?

Donald Trump won. What’s next for Vietnam real estate market?

Under Trump’s administration in the next four years, there might be further supply chain diversification, acceleration of friendshoring and nearshoring strategies, and trade polarization globally. Vietnam may benefit from these trends, write Avison Young Vietnam analysts.

Consulting - Tue, November 12, 2024 | 8:16 am GMT+7

Bright prospects seen for banking, securities, real estate, retail stocks next year: broker

Bright prospects seen for banking, securities, real estate, retail stocks next year: broker

Banking, securities, real estate and retail stocks have the potential to do well in 2025, says Dao Hong Duong, director of sectors and stock analysis with VPBank Securities (VPBankS).

Banking & Finance - Mon, November 11, 2024 | 9:37 pm GMT+7

Taiwan SpaceX supplier Universal Microwave Technology to double Vietnam investment

Taiwan SpaceX supplier Universal Microwave Technology to double Vietnam investment

Taiwan-based Universal Microwave Technology, a supplier for billionaire Elon Musk’s SpaceX, has said that it will increase its investment in Vietnam to a maximum $12 million.

Industries - Mon, November 11, 2024 | 7:51 pm GMT+7

Vietnam central bank sticks to ‘goldization’ fight, will consider open gold exchange

Vietnam central bank sticks to ‘goldization’ fight, will consider open gold exchange

Vietnam’s central bank, the State Bank of Vietnam (SBV), will continue to discourage the use of gold as investment or an asset to speculate on, says Governor Nguyen Thi Hong.

Banking - Mon, November 11, 2024 | 5:48 pm GMT+7

Vietnam records highest rate of online shopping in Asia Pacific: PwC

Vietnam records highest rate of online shopping in Asia Pacific: PwC

Vietnam stands out among the Asia Pacific region with the highest rate of online shopping. Vietnamese consumers are also increasingly prioritizing sustainability in their consumption practices, write PwC Vietnam analysts.

Consulting - Mon, November 11, 2024 | 5:18 pm GMT+7

Malaysia tightens control of social media

Malaysia tightens control of social media

Social media platform providers have been given a one-month deadline to respond to the code of conduct, after which they will be required to register with the Malaysian Communications and Multimedia Commission (MCMC) for licensing purposes, according to Malaysian Communications Minister Fahmi Fadzil.

Southeast Asia - Mon, November 11, 2024 | 4:05 pm GMT+7

Thailand pursues new policies to boost digital economy

Thailand pursues new policies to boost digital economy

The Thai Government is pursuing new digital policies to handle emerging security threats, including the impacts of US-China rivalry on the economy and technology, says Prime Minister Paetongtarn Shinawatra.

Southeast Asia - Mon, November 11, 2024 | 4:02 pm GMT+7

Japan’s Shizuoka Gas to acquire 25% stake in 50MW solar power plant in Vietnam

Japan’s Shizuoka Gas to acquire 25% stake in 50MW solar power plant in Vietnam

Japan’s Shizuoka Gas will acquire a 25% stake of My Son-Hoan Loc Viet Solar Energy JSC, the owner of 50-MW My Son-Hoan Loc Viet solar power plant in Vietnam’s central province of Ninh Thuan.

Energy - Mon, November 11, 2024 | 3:59 pm GMT+7

Vietnam central bank vigilant on inflation, cautious about credit risks

Vietnam central bank vigilant on inflation, cautious about credit risks

Vietnam’s central bank will manage its monetary policy in coordination with its fiscal policy to support economic growth, but it will stay alert about the return of inflation and take prompt action to curb it, says Governor Nguyen Thi Hong.

Banking - Mon, November 11, 2024 | 3:29 pm GMT+7

Vietnam’s first LNG-to-power plants set to connect to grid mid-Nov

Vietnam’s first LNG-to-power plants set to connect to grid mid-Nov

Nhon Trach 3 and Nhon Trach 4 power plants, the first LNG-to-power plants in Vietnam and located in the southern province of Dong Nai, are set to connect to the grid later this month.

Energy - Mon, November 11, 2024 | 2:28 pm GMT+7

Vietnam credit expands over 10% in 10 months

Vietnam credit expands over 10% in 10 months

Credit in Vietnam as of October 31 had grew 10.08% compared to the end of 2023, and 16.65% year-on-year, according to State Bank of Vietnam (SBV) Governor Nguyen Thi Hong.

Banking - Mon, November 11, 2024 | 12:09 pm GMT+7