By Shikin Louis
KUCHING, Sept 4: Asean will require more than USD50 billion to fund its cross-border power grid and green projects, far exceeding the USD12.5 billion committed by the World Bank and Asian Development Bank (ADB).
Deputy Prime Minister Dato Sri Fadillah Yusof said the World Bank has pledged USD2.5 billion while ADB has allocated USD10 billion, but described the total as insufficient for the scale of undersea cables and interconnection infrastructure planned across the region.
“The funding is available, but it is still not enough.
“The challenge now is to design the right financial and business models to attract more investors to come in,” he told reporters in a doorstep interview after a fireside chat session during the closing ceremony of Sustainability and Renewable Energy Forum (SAREF) 4.0 held at Borneo Convention Centre Kuching (BCCK) here today.
Fadillah, who is also Malaysian Minister of Energy Transition and Water Transformation, said private investors from the Middle East, Japan and China have expressed strong interest in financing the Asean Power Grid, which he believes will drive new growth, jobs and business opportunities throughout the bloc.
Asked whether Malaysia might pursue a Private Finance Initiative (PFI) model for the cross-border undersea cables, he said the structure would depend on demand and negotiations.
“For the project with Singapore, I believe they will take the lead as underwriters because they are the ones in need.
“The rest, such as forming the consortium, will be left to the business players, while the government’s role is only to facilitate,” he explained.
During the earlier fireside chat moderated by TV3 personality Zahir Kelvin Ong Abdullah, Fadillah highlighted Asean’s progress in energy cooperation, citing the case when Thailand supplied gas to Malaysia after a pipeline burst in Kuala Lumpur disrupted flows to the north.
He also said Sarawak is expected to have excess power by 2030 to export to Sabah, Brunei Darussalam and West Kalimantan, while Kalimantan’s hydropower plants will further boost Borneo’s role as the energy hub for Southeast Asia.
According to him, plans are already underway to build undersea cables connecting Sarawak to Johor, with the possibility of extending the network to Singapore.
Once Kalimantan completes its hydropower plants, it too will have access to the regional grid.
“The power can be supplied not only to Peninsula Malaysia and Singapore, but eventually to Thailand, Vietnam and beyond as those parts are already connected.
“From there it can also be transmitted up to Sabah, and from Sabah onwards to southern Philippines. The Philippines is actually looking forward to this.
“With the undersea cables, everything will be connected,” he added.
At the same time, Fadillah revealed that Asean energy ministers are scheduled to sign an enhanced agreement on the Asean Power Grid in October.
Also present were Minister of Utility and Telecommunication Dato Sri Julaihi Narawi; Minister of Food Industry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom; Deputy Minister for Utility (Sarawak Energy & Petros) and Sarawak Energy chairman Dato Ibrahim Baki; Deputy Minister of Energy and Environmental Sustainability (MEESty) Datuk Dr Hazland Abang Hipni; and Sarawak Energy Group Chief Executive Officer and SAREF 4.0 chairman Datuk Sharbini Suhaili. — DayakDaily
