Keppel to design and build Singapore's first waste-to-energy plant Nov. 2005

Keppel to design and build Singapore's first waste-to-energy plant under Public-Private Partnership initiative

Singapore, 14 November 2005 -

Keppel Seghers Group of Companies, the environmental technology division of Keppel Integrated Engineering (KIE) and a leading provider of comprehensive environmental technology solutions, has secured a 25-year Design-Build-Own-Operate (DBOO) contract from the Singapore National Environment Agency (NEA) for Singapore’s first incineration plant to be built under the Public-Private Partnership (PPP) initiative.

Located at Tuas South, the waste-to-energy plant, Singapore’s fifth, is expected to be operational by early 2009. When completed, the plant will be able to treat 800 tonnes of solid waste a day to generate more than 20MW of green energy.

Mr Chua Chee Wui, Chief Executive Officer of KIE said, “The waste-to-energy plant will be designed by engineers from our Keppel Seghers offices in Belgium and Singapore, incorporating our in-house technology - Keppel Seghers Grate, Keppel Seghers Boiler and Keppel Seghers Flue Gas Treatment System. Keppel Seghers will draw on our extensive and direct EPC experience, and also demonstrate our management and operating know-how for the successful long-term operation of the plant. Mr Luc De Ryck, Senior General Manager of Keppel Seghers Belgium added, “Keppel Seghers will now have a unique opportunity for furthering our R&D activities in a plant that we will ‘own’. It will allow us to keep our research efforts in tune with market needs and continue to offer state-of-the art technologies to our customers.

“Securing this project is evidence that Keppel’s investment in Seghers has given the company the much needed financial strength and risk appetite to participate in project financing and PPPs. With new markets in Europe opening up and Governments becoming more receptive to private financing and investing, this is a significant competitive advantage for our company.” When completed, KIE’s revenue for the plant is estimated to be S$450 million over the life of the contract.

Earlier this year, KIE laid the foundation for the construction of Singapore’s largest NEWater factory at a ceremony in Ulu Pandan. The 20-year DBOO contract was earlier awarded by the Public Utilities Board under the PPP initiative. When it becomes operational end 2006, the factory will be able to produce 116,000 m3/day of NEWater and 46,000m3/day of Industrial Water.

Keppel Seghers

Keppel Seghers is a leading provider of comprehensive environmental solutions ranging from consultancy, design and engineering, technology and construction to operations and maintenance of facilities. Our advanced technology solutions address a wide spectrum of environmental issues such as solid waste, wastewater, drinking & process water, biosolids & sludge. On top of this, Keppel Seghers offers a full range of environmentally-friendly industry applications for the removal of organic substances from metal parts and tools.

Public-Private Partnership (PPP)

The PPP is a win-win initiative by the Singapore Government to bring together resources, skills and experience of both the public and private sectors to meet the needs of the public effectively and efficiently.