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Keppel unit wins contract for cooling system plant in Jurong Innovation District

KEPPEL Corp's infrastructure arm has clinched a S$300 million contract to build, own and operate a new district cooling system plant for 30 years in the Jurong Innovation District (JID).

The contract, awarded by JTC Corp to Keppel DHCS, comes on the back of an earlier contract it won in September 2018 for the project's initial design phase. Keppel DHCS is wholly owned by Keppel Infrastructure, which is in turn wholly owned by Keppel Corp.

The new plant is expected to be completed by 2022, and will provide a "high quality and reliable" chilled water supply service to developments in a 28ha area within Bulim Phase 1, a precinct in the JID which houses many high-specification industrial-use buildings. The plant will have a capacity of 14,000 refrigeration tonnes, said Keppel in a bourse filing on Wednesday.

Keppel, a conglomerate with businesses in rig building, engineering and property development, said that the contract is not expected to have any material impact on earnings per share and net tangible asset per share for the current financial year.

Keppel DHCS' installed cooling capacity in Singapore would increase by nearly 20 per cent when the plant in JID is completed, it said.

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In Singapore, Keppel DHCS currently provides cooling services to Changi Business Park, one-north (Biopolis, Fusionopolis, Mediapolis) and Woodlands Wafer Fab Park.

Earlier in July, Keppel DHCS together with two joint venture partners also secured a contract for one of Thailand's private district cooling projects in Bangkok's Sam Yan commercial area. The contract was reported to be worth more than 7.5 billion baht (S$329 million).

Keppel shares closed down 11 Singapore cents, or 2.47 per cent to finish Wednesday at S$4.340, before the announcement was made.

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