KAB inks collaboration agreement to enter into renewable energy market in Vietnam

by TMR / pic by TMR FILE

KEJURUTERAAN Asastera Bhd has inked a collaboration agreement with Janakuasa Pte Ltd via its wholly owned subsidiary KAB Energy Power Sdn Bhd to explore the renewable energy market in Vietnam.

In a statement today the electrical and mechanical engineering services provider said a special purpose vehicle will be formed by KABEP and Janakuasa, to acquire the majority stakes in three hydropower plant projects located in Vietnam, with an aggregate installed capacity of 180-megawatt of power.

The Projects have existing Power Purchase Agreements with the state-owned utility company, Vietnam Electricity, which will expire between January 2030 and 2039. The Projects commenced commercial operations between 2015 and 2019.

Janakuasa, a private energy developer company based in Malaysia, Singapore and Vietnam, is currently developing two  notable power plants with strong partners, namely a 1,200-megawatt coal-fired power plant in Duyen Hai 2 and a wind power plant with a capacity of 78-megawatt in Hiep Thanh, both located in Vietnam.

Janakuasa has a proven track record built over the last three decades in the power sector and to date, has over 1,000-megawatt of thermal and green power projects under construction in Vietnam.

“This agreement demonstrates KAB’s commitment to expand its green energy solutions division, as well as growing its footprint in the Asian region. We are proud to be given an opportunity to form a synergistic partnership with Janakuasa as we are able to leverage on their experience and know-hows.

“Concurrently, with the huge growing demand for electricity in Vietnam, we are confident that our first foray into the Vietnamese market will be successful. We look forward to working together with Janakuasa in enhancing our long-term partnership in developing green projects in Vietnam,” said KAB’s managing director, Datuk Lai Keng Onn.

Both KABEP and Janakuasa will actively seek to further increase its renewable portfolio in Vietnam and support the Vietnamese government to meet its renewable energy targets in the shortest possible time.