More than US$50 billion (RM211.25 billion) is needed to complete the Asean Power Grid project, says deputy prime minister Fadillah Yusof.
Fadillah, who is also energy transition and water transformation minister, said the existing financing support from international banks remains insufficient to complete the project.
He said the World Bank has allocated US$2.5 billion, while the Asian Development Bank has set aside US$10 billion to support the initiative.
“The challenge is always the financial and business model needed to attract more investors,” Bernama reported him as saying at the Sustainability and Renewable Energy Forum 4.0 in Kuching.
The Asean Power Grid initiative is a flagship regional project aimed at enhancing energy security, sustainability and integration among member states.
At the session, Fadillah outlined Malaysia’s vision for a sustainable and resilient energy future ahead of the 43rd Asean Ministers on Energy Meeting.
He said beyond the multilateral lenders, private sector investors from regions such as the Middle East, Japan and China have expressed interest in the project.
“This will be a new growth for Asean as it brings investment, job opportunities and business opportunities for the entire region,” he said.
On the project’s financing structure, Fadillah explained that governments would play only a facilitating role while the private sector would determine the commercial model.
“For example, Singapore will likely take the lead, as it is the one with the demand. The details, such as underwriting and business concepts, will be left to the business community,” he said.
Fadillah said as Indonesia prepares to shift its capital to Nusantara, Malaysia is stepping up efforts to strengthen cross-border interconnectivity and energy security, with the Borneo Grid emerging as a cornerstone of this strategy.
