Groundbreaking follows Singapore II desalination finance deal
A day after Hyflux Ltd announced that it had secured financing for the second Singapore seawater desalination plant, a groundbreaking ceremony took place on 5 July 2011 at the International Water Week linked by video to the site.
Hyflux's wholly-owned subsidiary, Tuaspring Pte Ltd, signed a water purchase agreement in April to supply PUB, the national water agency, with 70 MIGD (318,200 m³/d) of desalinated water over a 25-year period from 2013 to 2038. Construction of the reverse- osmosis plant by Tuaspring is under a design, build, own and operate model.
PUB chief executive, Khoo Teng Chye, said, "This plant marks a significant milestone in Singapore's journey towards water sustainability. Desalinated water is an important pillar of Singapore's Four National Taps, and it is set to play an even bigger role. Water demand is expected to double from its current levels by 2060 and we aim to ramp up desalination capacity to meet 30% of the water demand by then."
Hyflux announced on 4 July 2011 that Tuaspring Pte Ltd had secured financing of Sing$ 150 million (US$ 122 million) to fund the the Tuaspring Desalination Plant. The financial package was arranged by DBS Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation.
The company also announced that it is on track to securing financing for the power plant that will be installed on site.
The desalination plant is expected to commence operations in 2013 with a first-year price for the desalinated water at Sing$ 0.45/m³ (US$ 0.37/m³).