Keppel Integrated Engineering Limited (KIE), a member of the Infrastructure division of Keppel Corporation Limited, has been awarded two contracts amounting to QR3.9 billion (approximately S$1.7 billion) from the Ministry of Municipal Affairs and Agriculture in Qatar.

The two contracts, of about equal value, are for the Engineering, Procurement and Construction (EPC) of an integrated solid waste management facility in Qatar, and the Operation and Maintenance of this facility for 20 years. The contracts will be undertaken by Keppel Seghers, a wholly-owned subsidiary of KIE.

One of the largest engineering contracts by a Singaporean company

Dr Yaacob Ibrahim, Minister for the Environment and Water Resources of Singapore and His Excellency Sheikh Abdul Rahman Bin Khalifa Bin Abdul Azziz Al-Thani, Minister of Municipal Affairs and Agriculture of Qatar, were the guests of honour at the signing ceremony held in Doha today.

Dr Yaacob said, “This project secured by Keppel is the largest environmental engineering undertaking that a Singaporean company has won in the international market. I hope that this significant project will also help strengthen the strong and warm relationship which Singapore enjoys with Qatar.

“The landmark contracts are a showcase of the successful Public-Private Partnership (PPP) between the National Environment Agency and Keppel to bring Singapore’s proven environmental technology and technical-cum-operational expertise to the highly competitive global marketplace.

“Singapore hopes to see and will encourage more Singapore environmental and water companies to venture and provide its expertise, services and products to the global water markets in the Middle East and beyond.”

The National Environment Agency (NEA) of Singapore, a statutory board under the Ministry of Environment and Water Resources, is Keppel Seghers’ strategic partner in this project. NEA’s extensive expertise and experience from its impressive track record of over 40 years in environmental protection and management, and public health, especially in solid waste management and street cleaning, makes it Keppel’s ideal partner for the delivery of this project.

Under the EPC Contract, Keppel Seghers will design and build four Waste Transfer Stations and one Integrated Domestic Solid Waste Management Centre (DSWMC) to handle and treat domestic solid waste for the whole of Qatar.

Designed to treat an initial capacity of more than 1,550 tons of waste a day, the DSWMC will comprise waste sorting and recycling facilities, landfill, composting plant and a 1,000 tons per day Waste-to-Energy (WTE) incineration plant. The WTE plant utilising Keppel Seghers’ water-cooled grate technology is the heart of the integrated waste treatment facility.

Other Keppel Seghers’ technologies to be deployed in the DSWMC include the Danodrum system for recycling and pre-treatment of waste, the Rotary Atomiser semi-dry system for flue gas treatment and the Unibrane membrane bioreactor system for wastewater treatment.

Through its in-house research & development capabilities as well as strategic alliances with global research institutes, KIE is continuously upgrading its technology offerings to its customers and adapting its solutions to suit local conditions and purposes.

First integrated solid waste treatment facility in the Middle East

The DSWMC is expected to be operational in 2009. This will be the first such integrated solid waste treatment facility in the Middle East, and one of few in the world.

Mr Chua Chee Wui, Chief Executive Officer of KIE and Keppel Seghers, said, “The Qatar Government, in their discernment and foresight, want the most suitable solutions to support their rapid economic development. We competed against some of the best international companies in this tender. Winning this contract is a ringing endorsement of Keppel’s proven state-of-the-art technologies and project management expertise.”

The Middle East countries are developing very rapidly as their governments seek to diversify their countries’ economies and reduce dependency on oil and gas income. There is urgent demand for basic infrastructure to support economic growth, especially for water resources management and waste management.

“Keppel will continue to tap the vast opportunities in the Middle East to secure more projects. We will leverage our established track record in offering both our water and thermal waste treatment solutions to clients in this region,” Mr Chua added.

Outside the Middle East, the recent ban of landfills in Germany has heightened the need for new waste treatment, opening up further opportunities in the European market for Keppel. This year alone, Keppel has secured several contracts for WTE plants in China and Europe.

Keppel Corporation announced its decision to grow its Infrastructure division in 2002. Investments made within this division include a 500 MW cogeneration power plant on Jurong Island, an 800 ton per day WTE plant (Singapore’s first incineration plant to be built under the Public-Private Partnership (PPP) initiative) and a 148,000 m3 per day Newater plant in Ulu Pandan, which will be the largest water recycling plant in Asia. Keppel is selectively pursuing infrastructure development and investment opportunities outside of Singapore as well.

These two contracts will help propel the Infrastructure division to become a significant contributor to the Keppel Group. The Infrastructure division is expected to contribute about 10% to the net earnings of Keppel Corporation for the next three years, commencing 2007.

The aforementioned contracts will not have a significant impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the financial year ending 31 December 2006.

Background Information

KIE
Keppel Integrated Engineering (KIE) is a wholly-owned subsidiary of Keppel Corporation.

Keppel Seghers, a subsidiary of KIE, is a leading provider of comprehensive environmental solutions ranging from consultancy, design and engineering, technology and construction to operations and maintenance of facilities. Its advanced technology solutions address a wide spectrum of environmental issues such as solid waste, wastewater, drinking & process water, biosolids & sludge. In addition, Keppel Seghers offers a full range of environmentally-friendly industry applications for the removal of organic substances from metal parts and tools.

Established in 1985, KIE’s subsidiary Keppel FMO provides one-stop integrated facilities management services especially for mission critical facilities. It is one of the largest facilities management service providers in Singapore - with more than 900 full time staff engaged in the management and operations of Aviation facilities, Educational institutions, Healthcare facilities, Manufacturing plants & infrastructure within Hi-Tech parks and Commercial & Purposed-built buildings in Singapore.

Keppel’s presence in Qatar and Middle East
Keppel is among the first Singapore companies to venture into the Middle East market as early as 1995 with the establishment of our joint venture shipyard Arab Heavy Industries in Ajman, United Arab Emirates.

In March 2006, Keppel’s offshore and marine subsidiary announced a letter of intent with Qatar Gas Transport Company Ltd. (“NAKILAT”) to jointly develop and manage a major new facility in the Port of Ras Laffan, Qatar, for the construction, repair and maintenance of ships and other marine structures. Keppel FMO also has ongoing facilities management contracts at the Doha International Airport in Qatar and is actively pursuing similar opportunities in the Middle East.

For further information, please contact

Teo Chang Ching
Senior Executive
Group Corporate Communications
Tel: (65) 64136426
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

A profile of Keppel's businesses in and with the Middle East

Inking the S$1.7 billion solid waste management contract in Qatar today are (left) His Excellency Sheikh Abdul Rahman Bin Khalifa Bin Abdul Azziz Al-Thani, Minister of Municipal Affairs and Agriculture (MMAA), and (right) Mr Lim Chee Onn, Executive Chairman, Keppel Corporation. Looking on are MMAA officials.

Dignitaries from Qatar and Singapore at the contract signing ceremony. (For the complete picture caption, please refer to the top)