Ground Breaking For Seawater Desalination Plant
Hyflux Ltd (the "Company") is pleased to announce that its wholly owned subsidiary, SingSpring Pte Ltd ("SingSpring") will be having its ground breaking ceremony for its seawater desalination plant ("Plant") on 16 January 2004. Guest-of-honour for this milestone event will be Mr Lim Swee Say, Minister of the Environment.
SingSpring will be undertaking the entire project of developing, financing, building and operating the Plant in Singapore with a designed capacity to supply 136,380 m3 of potable water a day to Public Utilities Board of Singapore for 20 years under a water purchase agreement signed in April 2003 ("Project").
The Plant is on schedule to begin construction on 19 January 2004 for completion in the 4th quarter of 2005. The present estimate of the Group's internal rate of return from the Project is between 18% and 26%, depending on the offtake.
Commenting on the project return, Ms Olivia Lum, Group CEO and President said, "Banks and suppliers have recognized the "bankability" of this Project and have been forthcoming with their support on very competitive terms. I am heartened by and grateful for this strong support which augurs well for the continued growth of the Group in pursuing and undertaking future projects."
By Order of the Board
Submitted by Lim Kim Seng, Company Secretary on 14/01/2004 to the SGX