SINGAPORE (Apr 22): A consortium headed by Keppel Corporation has received a letter of acceptance from the National Environment Agency (NEA) for an engineering, procurement and construction contract worth $1.5 billion. 

The consortium comprises Keppel Infrastructure’s environmental engineering unit Keppel Seghers Engineering Singapore, China Harbour (Singapore) Engineering Company and ST Engineering Marine. 

The contract will see the trio develop both a waste-to-energy (WTE) facility and a materials recovery facility (MRF) for Singapore’s new Nexus Integrated Waste Management Facility in Tuas. 

Keppel Seghers, China Harbour and ST Engineering Marine will be responsible for 48%, 31% and 21% of the works under the EPC contract respectively. As the consortium lead, Keppel Seghers will also be responsible for the overall project management.

The companies will jointly design and build a 2,900 tonnes per day (tpd) WTE facility and a 250 tpd MRF as part of the facility’s Phase 1 development

Both the WTE and MRF facilities, which will be co-located with PUB’s Tuas water reclamation plant at the Tuas View Basin site, will be among the largest of such facilities in Singapore following their completion in 2024. 

The WTE facility will generate sufficient electricity to sustain the operations of Tuas Nexus IWMF Phase 1 and the initial phase of Tuas WRP, with excess electricity for export to the grid. 

Meanwhile, the MRF will utilise advanced technologies to sort metals, paper, cardboard and plastics automatically, thereby contributing towards the overall recycling rate in Singapore. 

China Harbour will undertake the civil, structural and landscaping scope of the project, while
ST Engineering Marine will be responsible for the construction of the MRF, power island and the balance of plant.

The consortium will work closely with NEA, as well as their consultants for the design, construction and commissioning of the project. 

“As a developer and operator of two of Singapore’s current four WTE plants, Keppel, together with its partners, is honoured to contribute further to Singapore’s sustainable urbanisation through this flagship project,” says CEO of Keppel Infrastructure Ong Tiong Guan. 

The contract is not expected to have a material impact on the respective net tangible assets or earnings per share of Keppel Corporation and ST Engineering for the current financial year. 

As at 12.44pm, shares in Keppel are trading nine cents lower, or 1.6% down, at $5.58, while shares in ST Engineering are trading seven cents lower, or 2.1% down, at $3.26.