Hyflux subsidiary to develop Tanzania township
Singapore water firm Hyflux will help to develop potable water and wastewater infrastructure as part of an integrated township project in the Morogoro District of Tanzania...
Singapore water firm Hyflux will help to develop potable water and wastewater infrastructure as part of an integrated township project in the Morogoro District of Tanzania.
Morogoro serves as the transit point for travellers commuting between neighbouring East African nations including Kenya, Zambia, Burundi and Uganda.
Through its subsidiary company, Lavender Infrastructure, a joint venture has been formed with Crystal Developers to develop the project on a 3,200 hectare plot of land.
The plans have been announced during a period when Hyflux is looking to branch out from traditional municipal water treatment, which has historically been its core focus.
At the end of October, Hyflux announced a move into the solid waste treatment market, signing a services agreement with Mitsubishi Heavy Industries to develop Singapore’s sixth waste to energy project (watch newscast).
Earlier this month the Singapore company said it is planning to acquire 30% of Hungarian bottled water supplier, Kaqun Europe Zrt for US$8 million.
Located in the Morogoro District of Tanzania, the Morogoro project will build “basic infrastructure”, such as utility and environmental solutions, including power, potable water treatment, wastewater treatment and waste management.
It is hoped that this will facilitate the development of affordable and liveable housing on the land.
Upon the completion of the proposed investment into the JVC, Lavender will own 49% of the equity stake, while the remaining 51% will be held by Crystal. The aggregate consideration for Lavender’s acquisition of its stake in the JVC is in the amount of USD$5 million.
Following Lavender’s acquisition of its stake in the JVC, Hyflux said it will fund up to USD22.5 million over a period of seven years.