US$0.36/m³ price for Singapore’s second desalination plant

Tuaspring Pte Ltd, a subsidiary of Singapore’s Hyflux, signed a 25-year Water Purchase Agreement (WPA) with Singapore’s national water agency on 6 April 2011 for the country’s second and largest desalination plant.

Under this agreement, Tuaspring as the concession company, will deliver desalinated water to PUB over a 25-year period from 2013 to 2038.

The 70 MIGD (318,500 m³/d) desalination plant, to be located in Tuas, will be constructed under a design, build, own and operate model. It is expected to commence operations in 2013 with a first-year price for the desalinated water at Sing$ 0.45/m³ (US$ 0.36/m³).

Signing the WPA for PUB, Khoo Teng Chye, chief executive, said, “By 2060, we plan to increase our desalination and NEWater (reused wastewater) capacities to be able to meet up to 30% and 50% of our water demand respectively.”