NEA extends Keppel Infrastructure Trust’s contract to operate waste-to-energy plant for 3 years
Tessa Oh
KEPPEL Infrastructure Trust’s (KIT) concession agreement with the National Environment Agency for the Senoko waste-to-energy (WTE) plant has been extended for three years, with an option for a further one-year extension.
The total value of the contract, including the one-year extension option, is S$300 million, of which about S$80 million will go towards refurbishing the plant, said the real estate investment trust’s (Reit) trustee-manager in a statement on Monday (Jan 29).
The trustee-manager, Keppel Infrastructure Fund Management, has appointed Keppel Seghers to refurbish the key components of the Senoko WTE plant. Keppel Seghers is the environmental technology and engineering solutions unit of Keppel’s infrastructure division.
Keppel Seghers is also the plant’s current operations and maintenance operator and will have its service contract extended by three years, with an option to further extend for up to one year.
Kevin Neo, the chief executive of the trustee-manager, said the contract extension is a “good outcome” that will enable the plant to continue supporting Singapore’s waste management strategies, while contributing steady and predictable cash flows to KIT.
Senoko WTE plant is the third such plant built in Singapore. It is also one of four WTE plants that Keppel is operating globally.
It was commissioned in 1992, and has a land area of 7.5 ha. The 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 two times 28 megawatts.
Units of KIT traded flat at S$0.505 on Monday before the announcement.
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