Koh Brothers Eco bags PUB contract to provide industrial waste liquids treatment works

CATALIST-listed Koh Brothers Eco Engineering announced on Tuesday (Oct 26) that it has secured a S$200.7 million contract from the Public Utilities Board (PUB) to carry out mechanical, electrical and instrumentation control and automation (MEICA) works for the first of 2 Industrial Liquid Modules (ILMs) at Tuas Water Reclamation Plant.

After securing the project, the sustainable-engineering solutions provider will have an order book of S$783 million, up from S$582.3 million as at June 30.

When completed, the plant will be the world's largest industrial used-water treatment facility using ceramic membrane technology, with a treatment capacity of 75,000 cubic metres daily, equivalent to 30 Olympic-sized pools.

PUB had previously operated a demonstration plant using the same technology at Jurong Water Reclamation Plant with a daily treatment capacity of 4,550 cubic metres. The system was found to be resilient against chemical damage and able to treat high-strength industrial used water effectively.

Additionally, the ceramic membranes used are projected to have a life span of 10 to 15 years, compared to polymeric membranes, which last only 5 to 7 years.

This project also marks the ninth major Tuas Waste Reclamation Plant construction contract awarded by PUB and is part of PUB's Deep Tunnel Sewerage System Phase 2 (DTSS2) project, a S$6.5 billion infrastructure project to enhance Singapore's water sustainability by boosting PUB's capability to reclaim and recycle water.

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Yong Wei Hin, director of DTSS2, said that deploying the ceramic membrane bioreactor technology will help to close Singapore's water loop, as it allows for the reclamation of industrial used water, which will ensure a more resilient and sustainable water supply for the nation.

Koh Brothers Eco will construct the treatment process from preliminary, primary to secondary treatment, including headworks screening, primary sedimentation, biological treatment, drainage pumping station and major pipe racks as part of its scope of work.

Works begin next month, and are expected to be completed by December 2025. Operation and maintenance services will then be conducted for 12 months after that, during which the company expects to receive a steady stream of recurring income.

Koh Brothers Eco chief executive officer Paul Shin said that winning the contract makes a "strong testament" about the company's expertise and proven track record in water and wastewater treatment.

The company previously took on projects such as the Changi Water Reclamation Plant and the Keppel Marina East Desalination Plant.

Shin said that the company is in a good position to secure more MEICA projects in future and will focus more on the public sector. "Additionally, we will continue to optimise our resources and focus on raising productivity by embracing technology and digitalisation to enhance operational efficiencies," he said.

Koh Brothers Eco last traded at S$0.057 on Monday; the company had requested for a trading halt before markets opened on Tuesday.