Toyo Ventures signs BOT contract and PPA for US$3.23 billion thermal power plant project in Vietnam

Toyo Ventures Holdings Berhad (TVHB) announces that Song Hau 2 Power Company Limited (the BOT Company or Song Hau 2 Power), a wholly-owned subsidiary of Toyo Ink Group Berhad (TIGB) had executed the Build, operate and transfer (BOT) contract with Vietnam’s Ministry of Industry and Trade (MOIT) and Power Purchase Agreement (PPA) with Vietnam Electricity (EVN) for the investment and development of “Song Hau 2 Thermal Power Plant Project” in Vietnam.

The concession period starts from the execution of the BOT contract until 25 years after the facility's commercial operation date. 

The PPA provides for EVN to purchase and the BOT Company to sell electricity generating capacity generated by the Facility for twenty-five (25) years after the commercial operation date (“COD”) of the Facility as stipulated under the PPA. The tariff charged by the BOT Company to EVN comprises the capacity charge, energy charge and supplemental charge.

Prior to this, Toyo Ventures Holdings had also signed the following Project Agreements for the investment and development of the project:

i) Land Lease Agreement (LLA) with The People’s Committee of Hau Giang Province (Lessor)

ii) Shared Facilities and Services Agreement (SFSA) with Vietnam Oil and Gas Group (PVN)

The project will have a total land area of 117.39 hectares, with a capacity of more than 2 GW.