National water agency PUB’s concession agreement with Keppel Infrastructure Trust (KIT) for the SingSpring Desalination Plant (SSDP) has been extended by three years to 2028.

SSDP, Singapore’s first large-scale seawater desalination plant, commenced operations in 2005 for a 20-year concession period under the Design, Build, Own and Operate scheme. The plant is located in Tuas and has a supply capacity of up to 30 million gallons per day (136,380 cubic metres per day).

Mr Ong Tze-Ch’in, Chief Executive of PUB, said, “Desalination, Singapore’s fourth National Tap, is a weather-resilient source that adds to Singapore’s water security. With SSDP in good working order, we are pleased to continue our strong partnership with KIT.”

In tandem, KIT, through its Trustee-Manager, Keppel Infrastructure Fund Management Pte Ltd (KIFM), has appointed Keppel Ltd.’s Infrastructure Division, the plant’s current operations and maintenance (O&M) operator, to continue its O&M service contract for another three years.

Ms Cindy Lim, CEO of Keppel’s Infrastructure Division, said, “We are pleased to be awarded this service extension, which underscores the trust placed in Keppel by national water agency, PUB. Our deep technical know-how and decades of operating experience provide us with a unique edge as a global asset manager and operator. More than a sponsor to KIT, we deliver value-adding solutions and specialised long-term services that support the safe, reliable and efficient operation of critical infrastructure.”

Mr Kevin Neo, CEO of KIFM, said, “We are pleased to secure the extension of the SingSpring Desalination Plant concession from PUB as this will enable the plant to continue supporting Singapore’s water needs, while contributing steady and predictable cash flows to KIT. We look forward to the continued collaboration with PUB and Keppel’s Infrastructure Division, to ensure that all the required performance and service standards are met.”

The above transaction is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel or KIT for the current financial year.

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