Maxie Aw Yeong Business Times 7 Apr 11;http://www.blogger.com/img/blank.gif
PUB and Tuaspring, a Hyflux subsidiary, yesterday signed a 25-year water purchase agreement (WPA) for Singapore's second and largest desalination plant.
The plant will start its operations in 2013, adding 318,500 cubic metres of desalinated water to Singapore's daily water supply. This project will cost $890 million.
The desalination plant will be built beside the existing SingSpring plant in Tuas, which has a capacity of 136,000 cubic metres per day. It will be built under a design, build, own and operate model, and is expected to start in the fourth quarter.
The first-year price for the desalinated water is set at $0.45 per cubic metre, which works out to $52.3 million a year. Tuaspring will provide desalinated water to PUB until 2038.
PUB chief executive Khoo Teng Chye and Hyflux group president and chief executive officer Olivia Lum, who was representing Tuaspring, signed the WPA yesterday.
Mr Khoo reiterated PUB's plans to increase desalination and NEWater capacities to meet up to 30 per cent and 50 per cent of water demand respectively by 2060. He also said that desalinated water was 'set to play a bigger role in meeting Singapore's future water needs'.
Ms Lum said that Hyflux was pleased to collaborate with PUB again for the development of the second desalination plant to meet Singapore's rising demand for water.
Recently, Ms Lum told The Straits Times that Hyflux has shelved its plans for expansion in Libya, and may allow a US$100 million contract that it won in the country to lapse. It now plans to focus on growing its business in China and Singapore.
Hyflux shares closed down a cent to $2.15 yesterday.
