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