A study of PPP projects in Singapore

Abstract

The scope of study in this dissertation is to develop suitable financial models for the Tuas desalination plant and ITE West in Singapore. From the research, it was found that the offer price of S$0.78 by Hyflux to PUB was on a low side and energy cost was considered one of the most critical variables in the desalination plant project. To achieve a higher return on investment, it is recommended that some cost cutting measures such as producing water during off-peak hours and using energy recovery systems to reduce water production cost. The 50% securitisation of the Tuas desalination project to Temasek Holdings for S$30 million would enable Hyflux to employ it as investment and working capital for the project.