The document summarizes Singapore's approach to water management and public-private partnerships (PPPs) in water infrastructure projects. Key points: - Singapore faces water challenges due to its small size and high population density. It implements an integrated water management approach to collect, treat, and reuse every drop of water. - PPPs such as design-build-own-operate contracts have been used for desalination and water reuse plants. These long-term contracts allocate construction and operation risks to private partners. - The water purchase agreements and step-in agreements in the PPPs balance public and private interests. Payment structures incentivize performance and index prices to costs. With monitoring, the PPP

1. Sharing of Singapore’s Experience in PPP in water
infrastructure projects
Fong Han Loong
Industry Development Department
PUB Singapore

2. Biodata of Singapore
Small Island State
High population 5.3M
High annual
rainfall
2400 mm
Small Land
Area
710 km2 land area
Average water
demand
1.82 million m3/d (400 mgd)
 100% potable water at tap & 100% sanitation

3. Singapore in our early days
Difficult and Humble Beginnings

4. Water one of the National Agenda
Water as oneof the top top National Agenda
Water as oneasofthe top National Agenda
Mr. Lee Kuan Yew
Prime Minister of Singapore (1965
– 1990)
at the Inaugural Singapore
International Water Week (2008)
“ … This (water)
dominated every other
policy. Every other policy
had to bend at the knees
for water survival.”

5. Managing the complete water cycle
stormwater
management
rain
treatment
of
used water
sea
reclamation
of
used water
collection
of rainfall
in drains &
reservoirs
desalination
treatment of
raw to potable
water
supply of
water to the
population &
industries
collection
of used water
in sewers

6. Principles for Sustainable Water Supply
Principles for sustainable water supply

7. Collect Every Drop of Rain That Falls on Singapore
Local Catchment Water
• 2/3 of Singapore’s land area is water catchment
• Rainwater collected & stored in 17 reservoirs
• Tapping on more urbanised catchment (Marina, Punggol/Serangoon)
with integration to optimise yield

8. Collect Every Drop of Rain That Falls on Singapore
•
• More urbanised catchment & with integration of reservoirs  More challenging
raw water quality
• Upgrading needed  Technological advancement
• Increasing need to have more effective pollution control in urbanised catchments

9. Recycle every drop
Collect Every Drop of Used Water
Kranji WRP
Changi WRP
Jurong WRP
Ulu Pandan WRP

10. Deep Tunnel Sewerage System (DTSS)
Deep Tunnel Sewerage System (DTSS)
Deep tunnel and outfall completed
Digesters
Changi WRP

11. Recycle Every Drop of Water More Than Once
NEWater
Kranji NWF
17 mgd
Ulu Pandan NWF
32 mgd
Bedok NWF
18 mgd
Changi NWF
50 mgd
• Current
NEWater capacity can meet up to 30% of demand
• Ulu Pandan and Changi NEWater Plants supply NEWater
to PUB under the Public- Private-Partnership (PPP)
Approach.

12. Desalinated Water
Tuaspring Desal Plant
(artist impression)
Singspring Desal Plant
 TuasSpring Desalination
Plant (Hyflux subsidiary)
 70 mgd, 25 year DBOO
plant
 Officially opened by
Prime Minister Lee
Hsien Loong on 18 Sep
2013
Singspring Desal
30 mgd
Tuaspring Desal
70 mgd

13. Public-Private Partnership (PPP)
 Overview of Desalination and NEWater
Design- Build-Own-Operate (DBOO) Projects
 DBOO Project Structure
 Payment Structure and Indexation
 Challenges in Managing PPP project
 Concluding Remarks
13

14. PPP – A form of Best Sourcing
•Deliver projects and
source services at the
best value for money.
Best Sourcing
Build to
Design
Design &
Build
Traditional procurement
of assets
DBO **
DBOO *
PPP
• *DBOO: Design – Build – Own – Operate
•**DBO: Design – Build – Operate
14

15. Case Studies
1st PPP Project - Singspring Desalination Plant



Date of Agreement : April 2003
Concession Company : SingSpring (Pte) Ltd
Contract Term : 2005 – 2025
2nd PPP Project - Keppel Seghers NEWater Plant



Date of Agreement : January 2005
Concession Company : Keppel Seghers
NEWater Dev (Pte) Ltd
Contract Term : 2007 – 2027

16. Case Studies
3rd PPP Project - Sembcorp NEWater Plant


Date of Agreement: February 2008
Concession Company: SembCorp NEWater
Pte Ltd
Contract Term : 2010 – 2035

4th PPP Project - Tuaspring Desalination Plant



Date of Agreement: April 2011
Concession Company: Tuaspring Pte Ltd
Contract Term : 2013 – 2038
16

17. PPP Procurement Process
Prequalification of bidders
Issue of Request for Proposal
Clarifications
Submission of the bids
Evaluation
Signing of the Agreement
Financial Close
/Implementation by
Concession Company

18. DBOO Project Structure
Step-In
Agreement
Financier
Financing
Agreement
Equity
Investor
O&M
Contractor
PUB
2. Includes the
Water Purchase Agreement,
Third Party Agreements,
Water Purchase
Agreement
Step-In Agreement.
Shareholder’s
Agreement
O&M Contract
1. Project Structure Similar to
International DBOO Projects
Concession
Company
EPC Contract
Energy Supply
Agreement
Land Lease
EPC
Contractor
Energy
Supplier
Land Owner

19. Water Purchase Agreement
• The Water Purchase Agreement (WPA) is the key
agreement for the DBOO Scheme.
• It prescribes the contractual and legal rights of both
parties.
• It contains the technical, commercial and legal terms
and conditions for the supply and purchase of water.
19

20. Step-In-Agreement or Direct Agreement
•
Step-In Agreement is signed amongst PUB,
Concession Company and the Lenders/Financiers.
•
Provides for the Lenders/Financiers to step-in and
rectify concession company’s defaults.
•
In the case of NEWater DBOO projects, it also
provides for PUB to step-in to ensure service
continuity.
20

21. Payment Structure and Indexation
Payment structure based on fixed capacity payment and variable output payment.
Capital Recovery Charge
Fixed Capacity
Payment
(Based on
available
capacity)
Fixed O&M Charge
(Subject to Singapore Consumer Price Index)
Fixed Energy Charge
Total Payments
to Concession
Company
Variable O&M Charge
Variable
Output Payment
(Based on actual
quantity of water
supplied)
(Subject to Singapore Consumer Price Index)
Variable Energy Charge
(Subject to HSFO CST 180)
21

22. Technical Specifications
• Concession Company primarily takes construction
and operational risk. Therefore, they should be given
significant latitude to provide innovative solutions to
meet the public agency’s specified outcomes.
• The technical specifications of the four DBOO projects
are performance-based.
22

23. Challenges
(1) Monitoring the Performance of the Concession Company
Includes day-to-day monitoring of performance, assessing whether the
contracted services are delivered to the specified standards and
evaluating the remedial action taken by the Concession Company
when performance standards are not met.
(2) Managing the PPP Relationship
Long term, interdependent nature of PPP project necessitates a good
strong working relationship between the public agency and PPP
provider.
(3) Managing the Organisational Changes
Changes in management control of the Concession Company can
happen. Public agency’s interest must not be compromised despite the
change in management .
23

24. Concluding Remarks
• The project has so far gone well because the contract
were balanced. A rigorous selection process was
adopted to ensure that the selected DBOO partner has
the capacity to take on the project.
• Both have also adopted a partnership approach to
reach a win-win implementation of the project.
24

25. Singapore International
Water Week
1 – 5 June 2014
Sands Expo and Convention Centre,
Marina Bay Sands

26. 1st to 5th June 2014
Water Solutions for Liveable and Sustainable Cities
• The global platform to share and co-create
innovative water solutions
• Key highlights include Lee Kuan Yew Water Prize,
Water Leaders Summit ,Water Convention, Water Expo
and Business Forum & Business Forums
• Held in conjunction with the 4th World Cities Summit
and 2nd Clean Enviro Summit Singapore
Year
No. of
attendees
No. of
countries
participated
Value of
deals, tenders
& investments
announced
No. of
participating
companies in
Water Expo
2008
8,500*
79*
S$380m
350
2009
10,000
82
S$2.2b
420
2010
14,000*
112*
S$2.8b
514
2011
13,500
99
S$2.9b
604
2012
19,000+
104+
S$13.6b
750
* Jointly with World Cities Summit
+ Jointly
with World Cities Summit and Cleanenviro Summit Singapore

27. NEXT SIWW – Biennial Edition in 2014
Better synergistic integration with 3 Events – truly holistic and integrated
solutions approach towards sustainable urban development
Cross pollination of ideas and technologies, access to integrated solutions
as well as outreach to a wider pool of policy makers, industry players and
other key stakeholders

29. Highlights of the Water Convention 2012:






> 1,200 delegates from 60 countries
40 track-specialised parallel sessions
155 platform/oral presentations
176 poster presentations
4 Best Poster Awards (1 The New iPad & 3 iPod Touch)
Keynote Speakers: Tan Gee Paw, PUB (Singapore); Glen Daigger, CH2M Hill (USA);
Rita Colwell, University of Maryland (USA); Rob Skinner, Monash University
(Australia)

30. Themes of the Water Convention 2014:
 THEME 1: DELIVERING WATER FROM SOURCE TO TAP
 THEME 2: EFFECTIVE AND EFFICIENT WASTEWATER MANAGEMENT
 THEME 3: WATER FOR LIVEABILITY AND RESILIENCE
 THEME 4: WATER QUALITY AND HEALTH
 THEME 5: WATER FOR INDUSTRIES
Highlights of the Water Convention 2014:
 THE “HOT ISSUES” WORKSHOP
Presentations and Panel Discussions on Emerging Issues
BEST POSTER AWARD
Attractive Prizes to be won! Presenters will have the
opportunity to interact with the judges and delegates during a
dedicated poster session
Water Convention is jointly organised by:

31. We look forward to seeing you at
SIWW 2014!
1 – 5 June 2014
For more information, please visit: www.siww.com.sg
Or email: waterconvention@siww.com.sg
Water Convention is jointly organised by: