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Sanli bags sub-contract for Tuas Water Reclamation Plant

CATALIST-listed environmental-engineering firm Sanli Environmental said on Tuesday that its wholly-owned subsidiary, Sanli M&E Engineering, has secured a sub-contract from Chip Eng Seng for mechanical and electrical work on the Tuas Water Reclamation Plant.

The works under the main contract from national water agency PUB include the construction of biosolids treatment and biogas handling facilities and digesters at Tuas Water Reclamation Plant, the supply and installation of biosolids treatment and biogas handling equipment, and the testing and commissioning of the facilities.

Under the sub-contract, Sanli M&E will carry out engineering, procurement and construction of mechanical, electrical and instrumentation control and automation (MEICA) works under the main contract.

The sub-contract works are expected to complete in 2025. The works are also expected to contribute positively to the net tangible assets and earnings per share of the group for the financial year ending March 31, 2021.

Including the new sub-contract win, Sanli has secured S$197.5 million in contracts in both the EPC (engineering, procurement and construction) and O&M (operations and maintenance) segments, it said. These include other contracts with PUB and NEA. With these contract wins, the group’s order book stands at S$293.3 million, it said.

Chief executive Chua Teck Huat said: “We are happy to have secured this sub-contract, as we believe it speaks to our experience and expertise in the field of environmental engineering. Moreover, Tuas Water Reclamation Plant Contract 4A is an essential step towards joining the operations of Tuas Water Reclamation Plant and NEA’s Integrated Waste Management Facility to form the Tuas Nexus, Singapore’s first initiative towards combining water and solid-waste treatments. As a homegrown leader in the environmental engineering field, we are pleased to be a part of this project.”

Sanli shares last changed hands at S$0.058 on May 28.

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