KUALA LUMPUR: The Export-Import Bank of Malaysia Bhd (EXIM Bank Malaysia) is the mandated lead arranger for a funding raising exercise of up to US$2.68 billion for an “ultra-supercritical” (USC) technology coal plant in Vietnam.
It said the fundraising exercise will be co-led by one of Vietnam’s largest state banks, with more than 60% of the funds to be raised from 10 Vietnamese banks.
“The project, which is aligned with the bank’s mandate to support Malaysian companies venturing overseas involves the development of the first USC technology coal plant in Vietnam, marking Malaysia’s significant role in ASEAN’s energy transition,” the bank said in a statement.
EXIM Bank also noted that USC technology is at the forefront of the energy transition, offering substantial efficiency and environmental benefits, and aligns with Vietnam’s strategic energy transition plan to phase out less efficient traditional coal plants.
The project has been in support of the country’s aim to reduce coal power reliance from 31.1% to 20% by 2030.
“This project, to be undertaken by the BOT company, Song Hau Power 2 Company Ltd, will be constructed by an engineering, procurement, construction and commissioning consortium made up of Sunway Construction Sdn Bhd and Vietnam’s Power Engineering Consulting Joint Stock Company 2 (PECC2),” it said.
The project addresses the critical energy shortages in southern Vietnam, benefiting 36.24 million people facing continuous power shortages, according to the bank.
— BERNAMA
