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Keppel Infrastructure Holdings wins bid to build S'pore’s fourth desalination plant

SINGAPORE – Keppel Infrastructure Holdings has been picked to build Singapore’s fourth desalination plant in the Marina East, beating out six other bidders for the project.

Keppel Infrastructure Holdings wins bid to build S'pore’s fourth desalination plant

Reuters file photo

SINGAPORE – Keppel Infrastructure Holdings has been picked to build Singapore’s fourth desalination plant in the Marina East, beating out six other bidders for the project.

National water agency PUB made the announcement on Thursday (Dec 22), adding that Keppel Infrastructure will supply product water to PUB over a 25-year period from 2020 to 2045 at a first-year price of S$1.07867 per cubic metre.

When the plant begins operations in 2020, as expected, it will add another 30 million gallons – approximately 137,000 cubic metres of water – per day to the nation’s water supply.

As the PUB’s preferred bidder, Keppel Infrastructure Holdings will form a concession company to enter into a water purchase agreement with the PUB by January 2017.

The PUB added that the fourth desalination plant will be constructed under a Design, Build, Own and Operate arrangement, like how it was done in the first two desalination plants at Tuas.

The plant will “help to strengthen Singapore’s drought resilience”, said the PUB, as well as “enhance the reliability of water supply”.

The latter will be helped by the plant’s proximity to water demand zones in the city and eastern Singapore by providing an alternative supply to these areas, as the Marina East desalination plant will also have the capacity to treat freshwater from Marina Reservoir.

The tender, which opened on April 15 this year, attracted sixteen bids from seven bidders, including international companies.

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