Divestment of Senoko Incineration Plant To Keppel Integrated Engineering and Keppel Infrastructure Fund Management Pte Ltd

The Singapore Government has selected the proposal from Keppel Integrated Engineering Limited and Keppel Infrastructure Fund Management Pte Ltd for the divestment of Senoko Incineration Plant (the "SIP") to an infrastructure business trust/fund. The tender is awarded at an estimated price of SGD462million, with the final price to be determined at the completion of the divestment.

This is the first time that a divestment exercise by the Singapore Government has stipulated that the purchaser be an infrastructure business trust/fund.

Quality applications were received in the divestment exercise. All bid proposals were evaluated based on merit against an objective set of criteria. The consortium comprising Keppel Integrated Engineering Limited and Keppel Infrastructure Fund Management Pte Ltd was judged to be the best proposal after a rigorous evaluation process.

The divestment is expected to be completed by mid 2009. Upon divestment of the SIP, the Government will procure incineration services from the infrastructure trust/fund, with the operations conducted by Keppel Seghers Engineering Singapore Pte Ltd.

This divestment exercise is expected to further improve efficiency in the waste management sector through greater private sector involvement. It also represents a new alternative mode that the Government may choose for the divestment of its assets.

(Please refer to the previous media release on 28 Jan 08 for details of the divestment exercise)

The SIP is one of the four waste-to-energy incineration plants in Singapore. As a policy, all incinerable wastes (about 90% of Singapore's waste) are disposed of through waste-to-energy incineration while ash from these plants as well as the remaining non-incinerable wastes are disposed of at the offshore Semakau Landfill.

JOINT MEDIA RELEASE BY MOF, MEWR & MAS