Toyo Ink enters new memorandum of agreement for Vietnam power plant project

PETALING JAYA: Toyo Ink Group Bhd has entered into a new memorandum of agreement (MOA) with the Department of Natural Resources and Environment of Hau Giang Province (Hau Giang DONRE) for the development of a power plant project in Vietnam.
In a filing with Bursa Malaysia, the company said it had entered the new MOA on Oct 27, 2017 with revised terms and conditions of the land lease agreement (LLA). The new MOA replaces the earlier MOA dated Jan 16, 2017.
The MOA is in relation to the LLA for the development on a fast track basis of the Song Hau 2 - 2x1000 MW coal-fired thermal power plant project in Hau Giang Province, Vietnam.
Toyo Ink said it will use commercially reasonable efforts to reach agreements on all outstanding terms and issues relating to the build-operate-transfer (BOT) contract and the power purchase agreement (PPA) in good faith and as soon as possible. It estimates that this can be completed by August 2018.
Hau Giang DONRE will also use commercially reasonable efforts to accommodate certain changes raised by international lenders in the LLA, which are standard and usual for this type of non-recourse financing and are in accordance with the laws of Vietnam.
Both parties will, to their best efforts, make changes to the LLA in order to make it consistent with the BOT contract and the PPA, after the BOT contract and PPA are finalised.
The new MOA will be effective on the date of its execution and will continue in effect until Aug 31, 2018 or the date of signing of the BOT contract, whichever date is earlier.
Toyo Ink's share price rose 6.25% or 4 sen to close at 68 sen with a total of 10,000 shares traded, giving it a market capitalisation of RM72.76 million.