Toyo Ink to pay Vietnam consultancy firm US$35 million

PETALING JAYA: Toyo Ink Group Bhd will pay US$35 million (RM152 million) in consultancy service fees to Phu My Vinh Consulting Investment & Trading Service Co Ltd to assist in the negotiation with the relevant authorities in Vietnam for its proposed investment to build a US$3.5 billion coal-fired thermal power plant there.
In a stock exchange filing yesterday, Toyo Ink said it has entered into a consultancy services agreement with Phu My Vinh to advise the company on research and support the negotiation on the built-operate-transfer contract (BOT), power purchase agreement and land leases agreement pertaining to the power plant with the relevant authorities in Vietnam.
The consultancy services agreement will be effective up to when Toyo Ink receives the requisite approvals for the execution of the BOT contract, the power purchase and land leases agreements as well as the investment certificate from the Vietnamese authorities.
An investment certificate, which is mandatory for a foreign company to carry on its business operations in Vietnam, will only be issued to Tokyo Ink after the signing of the power purchase agreement.