hyflux named preferred bidder for tuas ii desalination plant
TRANSCRIPT
Hyflux named Preferred Bidder
for Tuas II Desalination Plant,
Singapore
7 March 2011
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Key Points
Singapore’s largest seawater desalination plant
Hyflux’s largest project by value
Second largest ultrafiltration membrane installation
after Magtaa Seawater Desalination Plant
3
Project Highlights
Capacity Seawater reverse osmosis (SWRO) desalination plant:
318,500 m3/day (70 million gallons/day)
Project Value S$890 million (EPC value S$750 million)
Contract Type Design, Build, Own, Operate (DBOO)
Off-taker PUB
Concession Period 25 years
Project Commercial
Operation2013
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Hyflux’s Involvement in Singapore
SingSpring
Desalination Plant136,380 m3/day
Chestnut Avenue
Waterworks273,000 m3/day
Seletar NEWater
Plant24,000 m3/day
Bedok NEWater
Plant32,000 m3/day
Jurong Membrane
Bioreactor Plant68,000 m3/day
Tuaspring
Desalination Plant
318,500 m3/day
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Overview of Desalination Plant
Reverse Osmosis
Building
CCGT Power
PlantUltrafiltration
Building
Tuaspring
SingSpring
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Project Structure
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CONCESSION
COMPANY
TUASPRING PTE LTD
Water Purchase
Agreement
O&M
Contract
EPC
Contract
Financing
Agreement
Financiers
Subsidiaries of Hyflux
Project financing: Provided
by a consortium of local and
international banks with
project financing expertise
Project economics: Equity
IRR low teens
Hyflux subsidiaries to
undertake 100% EPC and
100% O&M
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Project TimelineMarch 2011 Selected as ‘Preferred Bidder’ by PUB
Signing of Water Purchase Agreement (WPA) with PUBApril 2011
Financial closeJuly/August 2011
Construction commences4Q 2011
Plant begins operations2013
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Delivering a Cost-effective Water Solution
Energy a major operating cost
component for desalination
plants
411MW CCGT power plant on
site will supply electricity to the
project
– best size for optimal efficiency
Proactive power management
enables higher efficiency, cost
effectiveness and energy
security
Relative Operating Cost of SWRO Desalination Plant
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Operating Costs
Amortised capital cost
Electrical energy
Others
Others include chemicals, membranes, parts, labour
30%
40 - 50%
20 - 30%
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Driven by Our Innovative Membrane Technology
Second largest ultrafiltration
membrane installation after Magtaa
Desalination Plant in Algeria, the
world’s largest membrane-based
desalination plant
Proprietary Kristal ultrafiltration
membranes designed and developed
in-house
1) provide high quality water for reverse
osmosis pre-treatment
2) enhance performance and extend
lifespan of reverse osmosis membranes
3) consume less chemicals and energy
First ultrafiltration membrane to
achieve NSF certification for removal
of cryptosporidium
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Two Large Municipal Desalination Projects for PUB
Source: PUB
Hyflux will deliver 0.45 mil m3/day of Singapore’s desalination capacity by 2013
* % of demand
Current water demand is about 1.7 million m3/day.
By 2060, this amount is expected to double.
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Playing an Integral Part in Singapore’s Water Security
2001
Bedok NEWater Plant
(32,000 m3/day)
2002
Seletar NEWater Plant
(24,000 m3/day)
2002
Chestnut Avenue
Waterworks
(273,000 m3/day)
2003
SingSpring
Desalination Plant
(136,380 m3/day)
2010
Jurong Membrane
Bioreactor Plant
(68,000 m3/day)
2011
Tuaspring Desalination
Plant
(318,500 m3/day)
Hyflux’s Strategy
Vision To be the leading company the world seeks for innovative and effective environmental solutions
Objectives Enhancing water security Meeting water needs Producing clean, safe, affordable accessible water
Strategic
thrusts
Enablers
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Our Approach to Capture Growth Opportunities
Knowledge
of entire
water
value chain
Strong
Project
Origination
Financing
Expertise
Strategic
Partners
R&D
Capabilities
People,
culture,
values
Focus on water
business
Develop key growth
markets Innovate
Desalination
Water recycling
Wastewater treatment
Potable water treatment
China
Southeast Asia
Middle East and North Africa
India
Technology
Fully-integrated solutions
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Leverage Core Capabilities across the
Water Value Chain
O & MEPC
Design &
Process
Engineering
Component
Manufacturing
Supported by a strong financial platform
Project Origination /
Market AccessR&D
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Magtaa, Algeria (500,000 m3/day)
Desalination Expertise in Large-scale Plants
Tlemcen, Algeria (200,000 m3/day)
Tianjin Dagang, China(100,000 m3/day)
SingSpring, Singapore (136,380 m3/day)
Tuaspring, Singapore (318,500 m3/day)
Total desalination capacity > 1,254,000 m3/day
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Expanding Desalination Strategy to include
Energy ManagementCamille Hurn,
Senior Vice President – Infrastructure Development
20 years power, gas and water experience
13 years business development, acquisition, energy business strategy
development experience (Mirant Corp, National Power)
6 years experience in business development, global O&M and BOT water
projects (Hyflux)
Wong Khai Theen,
Managing Director, Head of Business Development (SEA)
29 years global experience in management of consultancy, design and
engineering, construction to O&M of industrial and municipal waste-to-energy
plants; sludge, hazardous waste and water treatment facilities (Keppel, Hyflux)
Dr Andrew Ngiam,
Group Chief Operating Officer
Over 30 years of professional experience in operations management, project
execution, strategy development and implementation, business development
and technology development in hydrocarbons and infrastructure in Asia,
Middle East and Australasia (WorleyParsons, Aker)
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Overview of Market – Indonesia
Source: IE Singapore, GWI Indonesia, PPP in Indonesia, Ministry of National Development Planning
Currently, only 47% of total population have access to improved water source.
By end of 2014, as part of the roadmap to achieve the Millennium Development Goals (MDG) set by
United Nations, the Government wants to increase household access to an improved drinking water
source to ~70% of total population.
One of Water Resources Development Targets for 2010 – 2014: To increase the raw water infrastructure
service capacity by 43.4 m3/s (~3,740MLD).
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Australia faces immense challenges in water management due to water scarcity and the impact of ever-
changing climate. Cities and towns need to secure their water supplies and reduce reliance on traditional
rainfall dependent water sources.
Investment in large desalination and recycled water schemes is likely to continue across Australia.
Industrial users are also likely to continue to switch from the use of municipal water source to the use of
privately-owned, on-site WTPs using rainfall independent water source.
Overview of Market – Australia
Source: IE Singapore, GWI Australia, www.environment.gov.au/water
China40%
SoutheastAsia
30%
Others30%
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Focus on Diversifying Geographical Revenue Streams
Revenue contribution by region
2014(estimated)
S$ mil
An Accelerating Orderbook Momentum
30 166 254 335
1100955
435435
863
1145
7481273
0
500
1000
1500
2000
2500
Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Mar 11
EPC
O&M
465601
1117
1480
1848
2228
S$840 mil in projects in last 3 months
750*
Note:
EPC orderbook excludes US$100 million from Tobruk as of March 2011.
EPC value for Tuaspring Desalination Plant S$750 million.
O&M order book is a summation of future revenues of our portfolio of plants over the concession periods.
WATER SOLUTIONS
THAT
IMPACT LIVES
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Disclaimer
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