Global engineering company JGC Corporation (JGC) of Japan and NewSpring Utility Pte Ltd, a wholly-owned subsidiary of Singapore-based membrane technology company Hyflux Ltd, today signed a joint venture agreement to jointly develop green field water projects in China.

The newly formed 50:50 joint venture company, to be called H.J. NewSpring Limited will be the investment holding vehicle for developing, investing and managing such water projects in China.

The JV company’s investment portfolio will initially comprise projects that are at the development and incubation stage, such as the Tianjin Dagang Seawater Desalination Plant, China’s largest seawater desalination plant. The JV company intends to expand the designed capacity of the plant from the current capacity of 100,000 cubic metres per day to 150,000 cubic metres per day.

The Hyflux Group will continue to provide the engineering, procurement and construction (EPC) services for the proposed expansion. The management consultancy, operation and maintenance services will be jointly provided by Hyflux and JGC.

The JV company will also grant Hyflux Water Trust rights of first offer and rights of first refusal for the project.