- Desalination plant to be located in Gujarat and will produce 336,000m3 of desalinated water per day
- Hitachi and Hyflux will collaborate on the engineering, procurement and construction (“EPC”) works and the operation and maintenance (“O&M”) works for the desalination plant.
Singapore, 22 March 2012 – Hyflux Ltd (“Hyflux” or “Company”) announced today that it has, through its wholly-owned entity, Hyflux Utility (India) Pte Ltd, together with its Japanese partners, Hitachi Ltd (“Hitachi”) and Itochu Corporation (“Itochu”) (collectively known as the “Consortium”), signed a co-developer agreement (“Co-Developer Agreement”) for the development of a seawater desalination plant with a designed capacity of 336,000m3 per day to be located in the Dahej Special Economic Zone (“Dahej SEZ”) in the state of Gujarat, India (the “Project”).
The Consortium, through a special purpose company known as Swarnim DahejSpring Desalination Pvt Ltd (“DahejSpring”), signed the Co-Developer Agreement with Dahej SEZ Limited (“DSL”), in which DSL has given sole and exclusive rights to DahejSpring to develop the Project on a “Design, Build, Own and Operate” (DBOO) basis and to supply the desalinated water to DSL. The shareholding structure of DahejSpring will be finalized at a later stage.
DahejSpring will be allotted land by DSL in the Dahej SEZ to develop and operate the Project for a period of 30 years. The total cost of the Project is currently estimated to be in the region of USD 600 million.
Hitachi will be the lead engineering, procurement and construction (“EPC”) Contractor and will collaborate with Hyflux in respect of the EPC works and the O&M works for the Project.
The Project will employ ultrafiltration pre-treatment and reverse osmosis membrane technologies to treat the seawater into water suitable for industrial use. The Project will be Asia’s largest seawater reverse osmosis (“SWRO”) desalination plant to date.
The commencement of the Project is subject to the execution of a water purchase agreement between DSL and DahejSpring and financial close.
Ms. Olivia Lum, Executive Chairman & Group CEO of Hyflux Ltd, said: “We are pleased to partner with Hitachi and Itochu for this landmark desalination project. This is Hyflux’s first largescale water project in India. We look forward to producing clean water to serve the Dahej SEZ.”
The Project is a result of a successful smart community feasibility study delegated to the Consortium by Japan’s Ministry of Economy, Trade and Industry (METI). METI sponsored several feasibility studies as part of a cooperative initiative between India and Japan to develop eco-friendly, technologically advanced infrastructure projects in the Delhi Mumbai Industrial Corridor.
The Project is not expected to have a material impact on Hyflux’s financials for the current financial year.
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