Hyflux Secures US$500m Project for Desalination

Hyflux secures US$500m project for desalination, power plant in Egypt

The desalination plant is designed to produce 150,000 cubic metres of water per day, and will feature an on-site 457-megawatt combined cycle gas turbine power plant to generate power and supply electricity to both the plant and the Egypt power grid. 

Homegrown company Hyflux has been awarded a letter of intent for a contract to construct the Ain Sokhna Integrated Water and Power Project in Egypt, it announced in a press release on Wednesday (Mar 3). 

The environmental solutions firm said the desalination plant, commissioned by the by the General Authority for the Suez Canal Economic Zone, is designed to produce 150,000 cubic metres of water per day. It will feature an on-site 457-megawatt combined cycle gas turbine power plant to generate power and supply electricity to the plant.

Excess power will also be dispatched to the grid and go towards supplying the Egyptian governorates' needs, it added. 

Construction of the plant is slated to commence after the finalisation of the contract, which is worth US$500 million. An additional 25-year operation and maintenance contract for the plant will also be awarded to Hyflux, it said. 

Executive Chairman and Group CEO of Hyflux Olivia Lum said the entry into the Egyptian market presents "exciting opportunities" for the company.

"This project is significant to us because it is our first integrated water and power project abroad and demonstrates our ability to put together an innovative solution that is recognised internationally," she said. 

The project is expected to have a "material financial impact" on Hyflux for the current financial year, subject to the signing of the relevant contracts, according to the news release. 

As part of his visit to Qatar and Egypt, Deputy Prime Minister Teo Chee Hean witnessed the award of the project to Hyflux on Tuesday with Egypt Minister of Industry, Trade and Small and Medium-Sized Enterprises Tarek Kabil. 

During a speech at a reception to mark the 50th anniversary of bilateral relations between Singapore and Egypt on the same day, DPM Teo noted that the two countries have been linked by the sea even before the Republic's independence. 

"The Suez Canal is the shortest maritime route between Asia and Europe. The opening of the Suez Canal in 1869 buttressed Singapore’s position as a maritime hub," he said.

The town of Ain Sokhna, where the new water and power plant will be built, is a harbour in the seaport city of Suez near the southern terminus of the Canal. 

With Egypt now moving into the second phase of the Suez Canal’s development, the economic zones around the canal have the potential to "transform Egypt’s economy and put Egypt on the global map", said DPM Teo. 

"Singapore stands ready to partner Egypt in its growth and development, drawing upon areas of developmental experience which we can share where relevant ... both sides have agreed to explore cooperation in port development and water resource management."

Source: Channel NewAsia

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• Desalination
• Water Management
• Energy