Maybank, DBS and IFC team up on financing framework for Johor energy corridor
The US$6 billion (RM25 billion) development will combine solar generation with battery storage to supply Malaysia and Singapore.
Malayan Banking Bhd has teamed up with DBS Bank and the International Finance Corporation (IFC), a World Bank Group institution, to develop a financing framework for the Southern Johor Renewable Energy Corridor (SJREC). The project is valued at US$6 billion (RM25 billion).
A memorandum exchanged at Singapore International Energy Week between the institutions and developer Ditrolic Energy Holdings Sdn Bhd sets up a working group to examine the project's bankability. Its scope includes regulatory clearance, grid connections, power purchase arrangements, the allocation of risk and the financing structure.
The corridor's developers are Ditrolic Energy and Permodalan Darul Ta'zim, the investment arm of Johor state. Solar generation and battery storage facilities are planned to supply both the Malaysian and Singaporean markets.
Singapore's Energy Market Authority granted conditional approval in August to Southern Solar Alliance Pte Ltd, Ditrolic's wholly owned Singaporean subsidiary, for renewable electricity imports from Johor of up to 600MW.
According to Ditrolic group CEO Tham Chee Aun, booking interest covered close to 90% of SJREC's green energy capacity, and attention had shifted to reaching financial close. Contracting, licences, permits and a final investment decision remain steps the project is progressing towards.
