Boustead subsidiary awarded AED55MIL contract for first new water recycling plant in UAE
Salcon, a subsidiary of Boustead, a leading global specialist in water and wastewater engineering announced today it has been awarded a AED55 million (approximately S$21 million) contract to design, engineer and construct a new water recycling plant for the enhanced treatment of treated sewage effluent (“TSE”) in Abu Dhabi.
The contract for Al Wathba Enhanced Treated Sewage Effluent Treatment Plant (the “TSE Plant”) was awarded by Abu Dhabi Sewerage Services Company (“ADSSC”). The contract will be administered and the TSE Plant will be operated by ADSSC and the Environment Agency-Abu Dhabi respectively.
The TSE Plant will have a treatment capacity of 6 million gallons per day (approximately 27,712 cubic metres per day) and will comprise processes including strainer, ultra-filtration treatment and ultra-violet light disinfection. Upon completion, the TSE Plant will be able to recycle and recover as much as 95% of the TSE supplied, producing high quality TSE water for agricultural irrigation and horticultural landscaping. The TSE Plant will be the first of its kind in the UAE and will provide a sustainable supply of water for the emirate’s horticultural requirements. By increasing water efficiency through the recycling process, the plant will also help to minimise the environmental impact of TSE.
The contract includes a five-year operations and maintenance agreement. Plant operations will be managed by an advanced integrated control system and SCADA (supervisory control and data acquisition) system to ensure operating efficiency, reliability and safety of the integrated operations.
For the design, engineering and construction of the TSE Plant, Salcon will draw on its expertise and experience gained from its turnkey EPC role in the 55,000 cubic metres/day Phase II Extension of Bedok NEWater Factory, owned and operated by PUB, the national water agency of Singapore. The Phase II Extension of Bedok NEWater Factory is a world-class showcase for PUB and Singapore, and is the first plant in the world to utilise commercial 16-inch reverse osmosis membranes.
Mr Tan Kwee Kok, Chief Executive Officer of Salcon said: “We are delighted that ADSSC selected Boustead Salcon Water Solutions to deliver the landmark Al Wathba Enhanced TSE Treatment Plant project, the first of its kind in the UAE. ADSSC is one of the most forward-looking water agencies in the Middle East and this project confirms its intentions to retain its position by deploying the latest technologies in water recycling. This is an important step in water conservation and sustainability in one of the most water stressed regions of the world. We are also pleased to highlight this project during this year’s Singapore International Water Week. Singapore continues to be a global leader in water and wastewater management practices, and the technologies that will be deployed at the Al Wathba Enhanced TSE Treatment Plant are already in use by PUB at its NEWater Factories.”
Mr Tan added: “We are very grateful to IE Singapore and PUB for the continuous support that they have provided to us. These government agencies have paved the way for our penetration into the Middle East, which we view as a long-term strategic market. IE Singapore has also been instrumental in helping us to strengthen our international presence.”
Mr Lim Ban Hoe: Group Director for Middle East and Africa at International Enterprise Singapore said, “As a country who has managed to address water scarcity issues, Singapore is well-placed to help address water resource issues in the Middle East. We are proud of Boustead Salcon Water Solutions’ achievement and contribution to the Middle East. This is certainly a testament of Singapore companies and their capability to address global requirements of their business partners on an international level.”
Mr Ng Han Tong, Director of Industry Development at PUB said, “PUB is delighted that Boustead Salcon Water Solutions is able to leverage on its proven track record with PUB to secure this project in Abu Dhabi, the UAE.”
As a Founding Sponsor of the Singapore International Water Week (“SIWW”) in 2008, Salcon is currently featured at the ongoing SIWW 2010, which runs from 28 June to 2 July 2010. The SIWW is a global platform for industry leaders, practitioners and policy makers to showcase their latest water technologies, exchange enriching insights on industry trends and offer partnership opportunities in the key emerging water markets.
The above contract is not expected to have a material impact on the profitability, earnings per share and net asset value per share of Boustead in the current financial year ending 31 March 2011.
None of the Directors or controlling shareholders of Boustead has any interest, direct or indirect, in the above contract.
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