Five teams bid for Singapore's Changi Newater II PPP contract

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Five teams bid for Singapore's Changi Newater II PPP contract

Five groups submitted bids to the Singapore's Public Utilities Board (PUB) for the development of the Changi Newater II PPP project.

Singapore based firms, Hyflux and Sembcorp, are understood to be among those who have submitted bids.

Singapore's Changi Newater Plant 2 has an investment value of about S$150-180 million

National water agency PUB invited local and international companies to submit proposals for the construction of the second Newater Plant at Changi in December 2013. Now the outcome of the bids is expected by June.

To be completed by 2016, this plant will add another 50 million Imperial gallons (mgd) or 228,000 cubic meters (cu m) of Newater a day to Singapore's water supply.

Newater currently meets 30% of Singapore's water demand, and this is set to increase up to 55% in the longer term.

Koh Boon Aik, PUB's Director of Best Sourcing, said:

"Increasing Newater capacity is necessary to meet the growing water demand and strengthen the resilience of Singapore's water supply.  Newater is used primarily by the non-domestic sector for non-potable use as well as topping up local reservoirs during dry weather."

Like the first Changi Newater Plant, the second plant will be constructed under a Design, Build, Own and Operate (DBOO) arrangement and utilise the same proven Newater process that was developed by PUB. The plant's main process facilities will be built mostly on the rooftop of the Changi Water Reclamation Plant. This not only saves land but also the cost of laying pipes to convey the treated used water from the water reclamation plant to the Newater plant.

The successful bidder will enter into a 25-year Newater agreement to supply Newater to PUB, commencing from 2016. The Newater agreement will set out the tariff structure, terms and conditions for the supply and purchase of Newater.

Mr Koh added:

"We have been adopting the Public-Private Partnership (PPP) model to expand our water supply system in a cost-competitive manner since 2005. These projects have been highly successful, ensuring a high quality and reliable water supply at the most cost-effective manner as they tap on private sector's expertise as well as their capacity and flexibility to innovate. Through participating in these PPP projects, water companies can also gain experience, build up their track record, and they can eventually export the expertise they gain from the project internationally."

The second Newater Plant at Changi is PUB's fifth DBOO project. Previous DBOO projects include the 30mgd SingSpring Desalination Plant, 32mgd Keppel-Seghers Ulu Pandan Newater Plant, 50mgd SembCorp Changi Newater Plant, and more recently, the 70mgd Tuaspring Desalination Plant.

Newater is one of the four sources of water under PUB's Four National Taps, a long term water supply strategy to ensure a robust and sustainable supply of water for Singapore. The other three sources are water from local catchments, imported water from Johor (Malaysia) and desalinated water.

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