Keppel Seghers appointed to refurbish, operate and maintain the plant.
Keppel Infrastructure Trust (KIT)’s concession agreement with Singapore’s National Environment Agency (NEA) for the Senoko WTE Plant has been extended by three years and comes with an option to further extend for up to one year. The total contract value, including the option of up to one year extension, is approximately $300 million, of which approximately $80 million will go towards the refurbishment of Senoko WTE Plant.
KIT, through its Trustee-Manager, Keppel Infrastructure Fund Management Pte Ltd (KIFM), has appointed Keppel Seghers, the environmental technology and engineering solutions unit of Keppel Ltd (Keppel)’s Infrastructure Division, to refurbish the key components of the Senoko WTE Plant to ensure safe and reliable operations. Keppel Seghers is also the plant’s current operations and maintenance (O&M) operator and will have its O&M service contract extended by 3 years, with an option to further extend for up to one year.
Mr Kevin Neo, CEO of KIFM, said, “We are pleased to secure the extension of the Senoko WTE concession from NEA for another three years, beyond its current expiry in August 2024. It is a good outcome, which will enable the plant to continue supporting Singapore’s waste management strategies while contributing steady and predictable cash flows to KIT. We look forward to the continued collaboration with NEA and Senoko WTE Plant’s operator, Keppel Seghers, to ensure that all the required performance and service standards are met.”
Mr Jackson Goh, Managing Director, Environment of Keppel’s Infrastructure Division, said, “As the operator of Senoko WTE Plant for the past 14 years, Keppel is well-placed to leverage its experience and technical know-how to refurbish the Senoko WTE Plant to ensure safe and reliable operations. This is a reflection of how Keppel’s strong operating capabilities complement our fund management platform, allowing us to harness synergies and create value for both Keppel and KIT’s unitholders.”
In 2012, Keppel Seghers upgraded its flue gas treatment system to ensure operations continued to meet the new, more stringent environmental regulatory requirements. In 2016, Keppel Seghers completed capacity upgrades and increased the plant incineration capacity by 10% (from 2,100 tonnes per day to 2,310 tonnes per day). Leveraging its expertise in WTE technology coupled with its operation and maintenance experience in Singapore and globally, Keppel Seghers will be undertaking the third asset enhancement for Senoko WTE Plant.
Senoko WTE Plant is the third WTE plant built in Singapore and is one of four WTE plants that Keppel is currently operating globally. It was commissioned in 1992 with a land area of 7.5 ha. Senoko WTE Plant has a capacity of treating 2,310 tonnes of waste per day and is equipped with six incinerator-boiler units with two condensing turbine-generators offering a maximum power generation capacity of 2 x 28 MW.
The above transaction is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel and KIT for the current financial year.
- End -
About Keppel Ltd
Keppel Ltd. (SGX:BN4) is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity. Headquartered in Singapore, Keppel operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonisation, sustainable urban renewal and digital connectivity. Keppel creates value for investors and stakeholders through its quality investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.
About Keppel Infrastructure Trust
Keppel Infrastructure Trust (KIT) is a diversified business trust listed on the Singapore Exchange with approximately S$7.3 billion in assets under management as at 31 December 2022. Its goal is to deliver sustainable and growing returns to Unitholders, through a combination of recurring distributions and capital growth.
KIT's portfolio of strategic infrastructure businesses and assets provide essential products and services to a wide array of customers including government agencies, multinational corporations, commercial and industrial enterprises as well as retail consumers.
KIT is managed by Keppel Infrastructure Fund Management Pte Ltd and is sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.
The value of Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, KIFM or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request KIFM to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This announcement is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units. The past performance of KIT is not necessarily indicative of the future performance of KIT. This announcement may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the KIFM’s current view on future events.
Subscribe to our newsletter and receive regular updates by email.Subscribe Now