Keppel Infrastructure Trust (KIT)’s concession agreement with the National Environment Agency (NEA) for the Senoko waste-to-energy (WTE) plant has been extended for another three years. The agreement also comes with an option to further extend for up to one year.
The total contract value – including the one-year extension – is approximately $300 million. Of the amount, $80 million will go towards the refurbishment of the plant.
KIT, through its trustee-manager, has appointed Keppel Seghers to refurbish the key components of the plant to ensure safe and reliable operations. Keppel Seghers is the environmental technology and engineering solutions of Keppel’s infrastructure division. It is also the plant’s current operations and maintenance (O&M) operator and will have its service contract for O&M extended by three years with the option to extend for another year.
“We are pleased to secure the extension of the Senoko WTE concession from NEA for another three years, beyond its current expiry in August 2024. It is a good outcome, which will enable the plant to continue supporting Singapore’s waste management strategies while contributing steady and predictable cash flows to KIT,” says Kevin Neo, CEO of the trustee-manager.
“We look forward to the continued collaboration with NEA and Senoko WTE Plant’s operator, Keppel Seghers, to ensure that all the required performance and service standards are met,” he adds.
“As the operator of Senoko WTE Plant for the past 14 years, Keppel is well-placed to leverage its experience and technical know-how to refurbish the Senoko WTE Plant to ensure safe and reliable operations. This is a reflection of how Keppel’s strong operating capabilities complement our fund management platform, allowing us to harness synergies and create value for both Keppel and KIT’s unitholders,” says Jackson Goh, managing director, environment of Keppel’s infrastructure division.
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The Senoko WTE plant is the third WTE plant built in Singapore and one of four WTE plants that Keppel is currently operating globally.
Commissioned in 1992 with a land area of 7.5 hectares, 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 2 x 28 MW.
Units in KIT closed flat at 50.5 cents on Jan 29.
