The agreement will see Hyflux subsidiary Tuaspring delivering desalinated water at a fixed price of $0.45 per cubic metre for the first year.
The desalination plant, to be located in Tuas, will be constructed under a Design, Build, Own and Operate (DBOO) model and is expected to commence operations in 2013. It will add another 318,500 cubic metres (70 imperial million gallons) of desalinated water per day to Singapore’s water supply.
Khoo Teng Chye, chief executive of PUB, said: “Desalinated water, together with water from local catchments, imported water and NEWater, form the Four National Taps, which rovide a diversified and sustainable water supply for Singapore."
PUB announced the tender for its second desalination facility during the Singapore International Water Week last year (see Water & Wastewater International video interview).
The Tuas facility forms part of the organisation's plans to increase its desalination capacity 10 times up until 2060, to eventually supply 30% of its water demand.
Last month saw internationally recognised Biological Nutrient Removal expert Dr James Barnard awarded this year's Lee Kuan Yew Water Prize (see Water & Wastewater International story).