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PUB’s PPP Experience

Desalination and NEWater PPP Projects Tan Kok Tian, Deputy Director, PUB


PUB : Part of Singapore’s MEWR Family

To deliver and sustain a clean and healthy environment and water resources for all in Singapore.

To ensure a sustainable quality environment in Singapore

To ensure an efficient, adequate and sustainable supply of water

 Clean Land

 Water Supply

 Clean Air

 Used Water

 Public Health

 Drainage


Managing the Entire Water Cycle

From sourcing, collection, purification and supply of drinking water, to treatment of used water and turning it into NEWater, drainage of storm water

stormwater management

collection of rainfall in drains & reservoirs

rain

treatment of used water

sea

desalination

treatment of raw to potable water

supply of water to the population & industries

collection of used water in sewers


1st PPP Project - Singspring Desalination Plant (at Tuas)     

Date of Agreement : April 2003 Concession Company : SingSpring (Pte) Ltd Contract Term : 2005 – 2025 Plant Capacity: 30 mgd (136,000 m3/day) Opened on 13 Sep 2005

2nd PPP Project - Keppel Seghers NEWater Plant  Date of Agreement : January 2005  Concession Company : Keppel Seghers NEWater Dev (Pte) Ltd  Contract Term : 2007 – 2027  Plant Capacity : 32 mgd (148,000 m3/day)  Opened on 15 Mar 2007

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3rd PPP Project - Sembcorp NEWater Plant (at Changi)  Date of Agreement: February 2008  Concession Company: SembCorp NEWater Pte Ltd  Contract Term : 2010 – 2035  Plant Capacity: 50mgd (228,000 m3/day)  Opened on 3 May 2010

4th PPP Project - Tuaspring Desalination Plant     

Date of Agreement: April 2011 Concession Company: Tuaspring Pte Ltd Contract Term : 2013 – 2038 Plant Capacity: 70mgd (318,500 m3/day) Target completion date : Mid 2013

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PPP Procurement Process Prequalification of bidders Issue of Request for Proposal Clarifications Submission of the bids Evaluation Signing of the Agreement Financial Close /Implementation by Concession Company


DBOO Project Structure Step-In Agreement

Financier

Financing Agreement Equity Investor

O&M Contractor

PUB

2. Includes the Water Purchase Agreement, Water Purchase Third Party Agreements, Agreement Step-In Agreement.

Shareholder’s Agreement

O&M Contract

EPC Contract EPC Contractor

1. Project Structure Similar to International DBOO Projects

Concession Company

Energy Supply Agreement

Land Lease

Energy Supplier

Land Owner


Payment Structure and Indexation

Payment structure based on fixed capacity payment and variable output payment.

Total Payments to Concession Company

Fixed Capacity Payment (Based on available capacity)

Capital Recovery Charge (Includes debt service, equity, taxes & duties, & distribution to shareholders) Fixed O&M Charge (Salaries, overheads, administration and insurances. Subject to Singapore Consumer Price Index.) Fixed Energy Charge (Fixed cost of procurement of energy)

Variable Output Payment (Based on actual quantity of water supplied)

Variable O&M Charge (Spare parts, chemicals, consumables,etc. Subject to Singapore Consumer Price Index) Variable Energy Charge (Variable components of energy cost for power needed to produce NEWater or desalinated water. Subject to HSFO CST 180)


Concluding Remarks • The project has so far gone well because the contract were balanced. A rigorous selection process was adopted to ensure that the selected DBOO partner has the capacity to take on the project. • Both have also adopted a partnership approach to reach a win-win implementation of the project.


Thank You


PUB’s PPP ExperienceDesalination and NEWater PPP Projects