The two had previously won the tender to build the plant on Jurong Island.
ST Engineering's marine arm, ST Marine has formed a 40:60 joint venture company with Tuas Power called TP-STM Water Services.
According to an announcement, ST Marine’s initial capital injection for its 40% equity in the paid-up capital of the TP-STM Water Services Pte Ltd is $8,400. This JV company is set up to undertake operations and maintenance of Singapore’s fifth desalination plant on Jurong Island for a concession period of 25 years from 2020.
Separately, ST Marine and Tuas Power had also formed a 40:60 Engineering, Procurement and Construction consortium that has since commenced preliminary design work for the desalination plant.
The Public Utilities Board (PUB) awarded the two companies the contract for its fifth desalination plant on Jurong Island. It is expected to add 30 million gallons (mgd) of water per day to the national supply.
The company will supply desalinated water over a 25-year period from 2020 to 2045. The other three sources are water from local catchments, imported water from Johor and NEWater.
The third desalination plant in Tuas is set to be complete this year, whilst the fourth in Marina East is set to be finished by 2020.
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