Toyo Ventures signs Investment & Development deal for 2.12 GW Thermal power plant in Vietnam

Toyo Ventures Holdings Bhd (TVHB) announced that the Company entered into an investment and development agreement (“IDA”) with Toyo Ink Group Bhd (TIGB), a wholly-owned subsidiary of TVHB, and China Energy Engineering Investment Corporation Ltd (CEEIC) on January 22, 2021 for the development of the Song Hau 2 Thermal Power Plant project in Vietnam.

Toyo Ventures said that the agreement aims at providing a framework for the conditions precedent to investment and finalisation of the detailed terms and arrangements for the proposed divestment of TVHB’s equity interest in TIGB to CEEIC, which shall be formalised under definitive agreements to be entered into between the same parties (“Substantive Agreements”) pertaining to the proposed investment cooperation and development of the 2 x 1,060 MW coal-fired power plant known as “Song Hau 2 Thermal Power Plant” in Hau Giang province, Vietnam.

The project is being developed on a build-operate-transfer (“BOT”) basis. It includes ancillary infrastructure, such as coal handling system, cooling and freshwater systems, pollutant and waste control, removal and treatment systems, coal yard and a dedicated 2 x 10,000 DWT coal jetties.

The total investment of the project, as already approved by the Vietnamese Government, is estimated at RM13.15 billion (USD3.243 billion).