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Darco bags S$13.1m worth of contracts for environmentally-friendly PWCS projects

MAINBOARD-LISTED Darco Water Technologies on Tuesday announced that it has recently secured S$13.1 million worth of contracts to supply and maintain pneumatic waste conveyance systems (PWCS) for centralised domestic waste collection in Singapore.

The four contracts were secured by the group's wholly-owned local subsidiary, PV Vacuum Engineering.

Of the four, two contracts with a total value of S$11.6 million were awarded by the Housing & Development Board (HDB). The two HDB contracts are for the design, building, operating and maintenance of the PWCS.

The total value of HDB's contracts consists of a S$3.2 million maintenance fee which will provide a recurring income stream for the group over the next decade.

PWCS is an automated waste collection system that uses high-speed technology to transport waste via an underground pipe network to a centralised bin centre. Since the entire collection process is enclosed and automated, it reduces manpower requirements, spillage onto common areas, foul smells and pest issues.

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Darco anticipates that PWCS will pave the way towards zero solid waste disposals in the future if it can be integrated with PV Vacuum's waste segregation system to salvage recyclable waste.

"The group has been seeking to enhance its engineering capability in the environmental protection industrial and commercial sector to the municipal market," said Darco CEO Thye Kim Meng. "The successful bid of these projects in solid waste management in HDB housing estates is in line with the group's strategy to become a comprehensive integrated environmental protection solutions provider."

The group believes that there is huge market potential for its business as HDB rolls out PWCS to other estates.

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