Singapore, February 28, 2008 – Sembcorp NEWater Pte Ltd, a new subsidiary set up by Sembcorp Utilities Pte Ltd, signed a 25-year NEWater agreement with PUB, the national water agency, today. Under the agreement, Sembcorp NEWater will design, build, own and operate Singapore’s largest NEWater plant at Changi and supply PUB with 50 million gallons of NEWater a day (or mgd), starting from 2010. The first-year price for NEWater is $0.29966 per cubic metre.

Construction of the new plant will start in April. The Changi NEWater Plant comprises two sections. The main process facilities of the Changi NEWater Plant will be built on the roof-top of the Changi Water Reclamation Plant while the storage tanks will be built on land.

This innovative “plant-on-plant” design was conceptualised by PUB to help to save land costs. PUB and Sembcorp will be working closely to ensure a smooth interface between the NEWater plant construction and the operations of the Changi Water Reclamation plant. Treated used water from the Changi Water Reclamation Plant will be piped directly to the NEWater plant as feedwater.

By 2009, the Changi NEWater Plant will be partially completed with an initial capacity of 15mgd. At its peak, up to 250 employees are expected to be working on the plant’s construction. Twenty people are expected to run the plant when it is fully operational in 2010. In the run-up to its opening, PUB will provide the Sembcorp NEWater key operators with on-the-job training by attaching them to PUB’s existing NEWater plants.

Mr Tang Kin Fei, Group President & CEO of Sembcorp Industries, said: “We are honoured to participate in Singapore’s largest NEWater project to date. Sembcorp has been handling water recycling projects since 2000 and with our established track record, we are confident that we will be able to deliver this project successfully. We will also strive to increase plant yield and optimise plant operation. To this end, we plan to improve on the efficiency of reverse osmosis membranes through joint research and development with the membrane supplier.”

Sembcorp will be the third private company to supply water to PUB under the Public-Private Partnership (PPP) approach. The first two are Singspring Pte Ltd and Keppel Seghers NEWater Development Co Pte Ltd who own and operate the Singspring Desalination Plant and Keppel Seghers Ulu Pandan NEWater Plant respectively.

“The Changi NEWater project is a very strategic project for Sembcorp as it underscores our ability to cater to a large-scale municipal segment. Leveraging on this project and our proven track record, we are in an even better position to seize opportunities in the fast-growing water market internationally,” added Mr Tang.

Besides Singapore, Sembcorp also manages water treatment facilities in China, the United Kingdom and the United Arab Emirates. Globally, the total water capacity under Sembcorp’s management will reach about 4 million cubic metres per day when the Changi NEWater plant is completed in 2010.

Sembcorp and PUB had earlier joined hands to provide used water treatment and also explore water supply projects in Zhangjiagang, China based on an integrated urban water management concept. This project is part of the China-Singapore Collaboration in Urban Environment and Water Management. It has been earmarked as a water demonstration project to showcase Singapore’s experience in integrated water resource management.

“PUB has been actively supporting our Singapore-based industry partners in their ventures overseas. The Changi NEWater Project is not only a flagship project that will further strengthen Sembcorp’s track record but also contribute to Singapore’s sustainability in water,” said Mr Moh Wung Hee, PUB’s director for Best Sourcing.

NEWater already meets more than 15 percent of Singapore’s total daily water needs. With the addition of the Changi NEWater Plant, NEWater will meet 30 percent of Singapore’s current water needs by 2010.

Introduced in 2003, NEWater is one of Singapore’s four diversified sources of water supply. The other three are water from local catchments, imported water from Johor and desalinated water.

– End –

For media enquiries, please contact:

GOH Wan Cheng (Ms)
Senior Executive
Group Corporate Relations
Sembcorp Industries Ltd
DID: +65 6723 3153
Email: [email protected]

Teo Yin Yin (Ms)
Manager (Communications)
PUB
DID: +65 67313158
Email: [email protected]

ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries Ltd is a leading utilities and marine group. The Group provides centralised utilities and energy to industrial customers in Singapore, the United Kingdom, Asia and the Middle East. It is a global leader in marine and offshore engineering and also a provider of industrial park and environmental management services in the region.

Sembcorp Industries has total assets of over $8.7 billion and employs more than 6,700 employees.

Listed on the main board of the Singapore Exchange, Sembcorp Industries is a component stock of the Straits Times Index and several MSCI indices.

ABOUT PUB
PUB is a statutory board under the Ministry of the Environment and Water Resources. It is the national water agency, managing Singapore’s water supply, water catchment and used water in an integrated way. PUB won the 2007 Stockholm Industry Water Award and was named Water Agency of the Year at the Global Water Awards 2006.

ABOUT PUB’S TAGLINE: WATER FOR ALL: CONSERVE, VALUE, ENJOY
PUB has ensured a diversified and sustainable supply of water for Singapore with the Four National Taps (local catchment water, imported water, NEWater, desalinated water).
To provide water for all, PUB calls on all Singaporeans to play our part to conserve water, keep our water catchments and waterways clean and build a relationship with water so we can enjoy our water resources. We can then have enough water for all uses – for industry, for living, for life.