News report has emerged in Vietnam that Malaysian based company Toyo Ink Group Berhad investment project of Song Hau 2 Coal Thermal Power Plant is on the brink of termination.
This comes after the Ministry of Industry and Trade said that it will wield an iron fist on delayed projects and give chance to projects that are switching from coal.
The news report by Vietnam Energy Online highlighted Toyo’s US$3.23 billion Song Hau II scheme which is still having problems on funding and if it can’t resolve the matter by July 1 2024, the Ministry will send a notice of termination, which means cancellation of the contract.
In December, subsidiary of the group Toyo Ventures proposed to settle RM354 million out of the RM355 million it owes to its creditors in relation to the Vietnam power plant project through the issuance of RM354million nominal value of five-year, zero-coupon irredeemable convertible unsecured loan stocks.
Background on the project, in 2007, Toyo Ink Group Berhad, a wholly-owned subsidiary of Toyo Ventures submitted a proposal to undertake a power plant project in a suitable province in Vietnam. TIGB had since jointly worked with the local authorities and consultants in Vietnam to explore and locate a suitable site for the power plant project. In pursuance of the study and assessment of the availability and suitability of the existing infrastructure, it had since decided to construct the power plant on a build-operate-transfer basis at the Song Hau Power Complex in Hau Giang Province.
Subject to the finalisation of the detailed specifications for the Project, the ancillary infrastructure of the Project, and the associated project documents, the total investment, as already approved by the Vietnamese Government, is estimated at USD3.24 billion (equivalent to approximately RM14.36 billion) which the group intends to be financed through a combination of equity funds and bank borrowings.
