The desalination process will use reverse osmosis technology, where seawater is forced against semi-permeable membranes under pressure in a continuous flow condition.
The product water will be supplied to PUB at a first-year price of $0.45 per cubic meter based on the warranted capacity of 318,500 cubic meters per day.
Hyflux will also be constructing a 411MW combined cycle gas-turbine power plant to supply electricity to the desalination plant, and the excess power will be sold to the power grid.
The total project cost of both the plants is $890m, which will be funded through a combination of equity and project financing.
The engineering, procurement and construction as well as operations and maintenance of the project will be undertaken by the company’s subsidiaries.
The company plans to begin construction by the fourth quarter of 2011 and the project is scheduled to commence operations by 2013.
