Public Utilities Board ( PUB ), Singapore’s national water agency, has extended its concession agreement with Keppel Infrastructure Trust ( KIT ) for the SingSpring Desalination Plant ( SSDP ) by three years to 2028.

SSDP, Singapore’s first large-scale seawater desalination plant, commenced operations in 2005 for a 20-year concession period under the design, build, own and operate scheme. Located in Tuas, the facility has a supply capacity of up to 30 million gallons per day ( 136,380 cubic metres per day ).

“Desalination, Singapore’s fourth national tap, is a weather-resilient source that adds to Singapore’s water security. With SSDP in good working order, we are pleased to continue our strong partnership with KIT,” says PUB chief executive Ong Tze-Ch’in.

KIT, through its trustee-manager, Keppel Infrastructure Fund Management ( KIFM ), has appointed Keppel Ltd’s infrastructure division, the plant’s current operations and maintenance ( O&M ) operator, to continue its O&M service contract for another three years.

“We are pleased to be awarded this service extension, which underscores the trust placed in Keppel by national water agency, PUB,” says Cindy Lim, CEO of Keppel’s infrastructure division.

“Our deep technical know-how and decades of operating experience provide us with a unique edge as a global asset manager and operator. More than a sponsor to KIT, we deliver value-adding solutions and specialized long-term services that support the safe, reliable and efficient operation of critical infrastructure.”

The transaction is not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel or KIT for the current financial year.