Mainboard-listed Hyflux’s subsidiary, Hydrochem (S), has been awarded a $35.8 million contract by PUB, Singapore’s national water agency, to design, construct, test and commission a membrane bioreactor plant with a designed capacity of 68,000 cubic metres per day.

The plant at the Jurong Water Reclamation Plant will be Singapore’s largest. It will also be the largest membrane bioreactor plant to be built by Hyflux.

Using biological processes and microfiltration membranes, used water from the industrialised Jurong catchment will be treated for use by industries located on Jurong Island.

Construction of the plant is scheduled to start on March 3 March and is expected to be completed within 18 months. In addition, Hyflux through its specialist subsidiary will provide maintenance services to the plant for a period of 12 months upon project completion.

Among the key water installations in Singapore, Hyflux was the main contractor for the Bedok and Seletar NEWater plants, Chestnut Avenue Waterworks and SingSpring Desalination Plant, Singapore’s largest seawater desalination plant in which Hyflux was awarded the project on a Public-Private-Partnership (PPP) arrangement.

The contract for the plant is not expected to have a material impact on the net tangible assets or earnings per share of Hyflux for the financial year ending 31 December 2010.