Page 10 - AsiaElec Week 50

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NEWS IN BRIEF
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plant on Thar Block VI, also included as a ‘priority project’ within the CPEC.
The joint development agreement foresaw the creation of a special purpose vehicle to develop and undertake both projects.
It was envisaged that the project would be funded on a 75% debt and 25% equity basis, with Oracle having a 12% stake, the private office 15% and the Chinese group 73%.
COAL-FIRED GENERATION
Hitachi, MHI reach
settlement over South
African project
Japan’s Hitachi Ltd and Mitsubishi Heavy Industries Ltd (MHI) said on Wednesday they had reached an out-of-court settlement of their dispute over losses stemming from a South Africa power plant project.
Hitachi will pay MHI a settlement of JPY200bn ($1.8bn) in March and transfer to MHI its entire 35% stake in their joint venture Mitsubishi Hitachi Power Systems, the companies said in separate statements.
Hitachi said the stake transfer would reduce its burden by 70bn yen, meaning it would pay JPY130bn ($1.2bn) to MHI.
In 2007, Hitachi won a contract to build 12 boilers for the Medupi and Kusile power plants of South African utility Eskom.
It later transferred the contract to the joint venture, Mitsubishi Hitachi Power Systems
Ltd, which was set up in February 2014 by combining the thermal power generation businesses of the two companies.
But the power stations were hit by cost overruns and delays, and Hitachi and MHI disagreed on whether some costs were incurred before or after the creation of the venture.
HYDRO
Singapore’s Nexif Energy
buys 94% in Vietnam’s
Song Giang Hydropower
Nexif Energy, a Southeast Asian independent power producer headquartered in Singapore, has acquired 94% stake in Vietnam’s Song Giang Hydropower JSC for an undisclosed sum, according to a statement.
Song Giang owns two run-of-river hydropower projects totalling 49MW in the Khanh Hoa province of Vietnam.
The two projects are the 37MW Song Giang 2 which has been operating since December 2014 and the under-construction 12MW Song Giang 1 that is expected to be completed in the second quarter of 2021.
According to Nexif Founder and co-
CEO Surender Singh, this acquisition will significantly add to Nexif Energy’s portfolio of renewable energy projects in Vietnam.
“Today’s announcement builds on our presence in Vietnam with Coc San
Hydropower project in Lao Cai province and the wind energy projects in Ben Tre and Soc Trang provinces currently in the development stage.
It will also add to our projects in Thailand and the Philippines in Asia and rapidly expanding portfolio in Australia,” he said.
Nexif Energy was formed in August 2015 by Nexif, a Singapore-based independent power management company, and Denham Capital, a global energy-focused private equity firm with more than $9bn of invested and committed capital across eight funds.
This agreement is a significant milestone in Denham Capital’s plans to invest in a portfolio of more than 1000MW of renewable and dispatchable generation projects in Asia and Australia by 2021.
Private equity investors are increasingly evincing interest in Vietnam’s renewable energy sector as the country, that has long relied on coal and hydropower for electricity production, seeks private investments in alternative resources.
Renewable energy emerged one of the most preferred sectors for investments in the country in 2019 as it took the third slot after fintech and education, according to a Grant Thorton survey.
RENEWABLES
Tokyo Gas to step up overseas expansion in
P10
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Week 50 18•December•2019