BUILDING & ENGINEERING | Staff Reporter, Singapore

Keppel Infrastructure and Chinese engineering firm win $5.3b waste treatment contract

Keppel's share of the contract is at $1.95b for operation and maintenance.

Keppel Infrastructure Holdings Pte Ltd (Keppel Infrastructure) and China Harbour Engineering Company Limited won a contract worth $5.3b for a Hong Kong integrated waste management facility (IWMF).

According to a press release, their respective subsidiaries Keppel Seghers Hong Kong Limited (Keppel Seghers HK) and Zhen Hua Engineering Co. Ltd. (Zhen Hua) secured the design, build, and operate (DBO) project off the coast of Shek Kwu Chau.

Here's more from Keppel:

The Engineering, Procurement and Construction (EPC) phase will be undertaken by Zhen Hua, one of the biggest construction and reclamation companies in Hong Kong with strong civil and marine works experience.

The EPC phase will involve the reclamation of an area of about 16 ha, design, engineering and construction of breakwaters, as well as of the IWMF, and its related port facilities on the reclaimed island.

During the EPC phase of the contract, Keppel Seghers will provide its proprietary waste-to-energy (WTE) technology, which has been successfully deployed for over 100 WTE projects around the world, as well as WTE project implementation and execution of the mechanical treatment plant, power island and desalination facilities.

Subsequently, Keppel Infrastructure Services will undertake the Operations and Maintenance (O&M) of the facility for 15 years after it is completed in 2024.

For its roles in the EPC and O&M phases, Keppel Infrastructure's share of the total contract is approximately HK$11.3b ($1.95b), with up to an additional HK$9.6b ($1.7b) for escalation provisions and other contingencies.

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