Further to our announcement dated 27 September 2007, Keppel Corporation Limited, through its wholly owned subsidiary, Keppel Seghers Pte Ltd, is pleased to announce that it has signed the contract from Qatar Public Works Authority (Ashghal) to the design, building, operation and maintenance of a wastewater treatment and reuse plant in Qatar for QR3.6 billion (approximately S$1.5 billion).

The signing ceremony today was witnessed by the Heir Apparent of Qatar, His Highness Sheikh Tamim Bin Khalifa Bin Hamad Al-Thani and Mr Wong Kan Seng, Deputy Prime Minister and Home Affairs Minister, during the Second Meeting of the Qatar-Singapore High-Level Joint Committee (HLJC) held over 29-30 October.

The Qatari delegation includes the Prime Minister and Minister of Foreign Affairs, Sheikh Hamad Bin Jassim Bin Jabr Al-Thani, and the Finance Minister and Acting Minister of Economy and Commerce, Yousef Hussein Kamal.

Known as the Doha North facility, the wastewater treatment and water reuse facility is expected to be completed in 2010, in which time, Keppel Seghers' operation and maintenance contract with Ashghal would begin for a period of 10 years.

Largest wastewater and sludge treatment facility in the Middle East

The Doha North facility is expected to be operational in 2010. With peak design capacity to treat wastewater of up to 439,000 cubic metres per day, this will be the largest wastewater treatment and reuse facility in Qatar, more than triple the capacity of the next largest wastewater treatment plant. The Doha North facility will serve a population of over 900,000 when completed. The treated water will be recycled for irrigation needs.

The sludge treatment plant in the Doha North facility will be the only sludge treatment plant in Qatar. It will receive and treat sludge from wastewater treatment plants all over Qatar. The treated sludge can be used as an organic fertilizer or as a supplementary green source of energy.

With its forte in water and thermal recycling, Keppel is able to offer a complete ecologically-friendly design for the Doha North facility. Keppel applied in-house know-how and technology in water and thermal treatment processes, ranging from advanced biological water treatment processes to membrane filtration to produce high quality water for reuse, and thermal drying processes to treat the wastewater sludge. The Doha North facility will have advanced odour control systems to minimise its impact on the surrounding communities.

Within the Middle East and Mahgreb region, Keppel has delivered more than 30 water treatment projects. It recently secured two wastewater treatment and water reuse projects in Algeria. Globally, Keppel has more than 400 reference water treatment projects.

The aforementioned contract 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 2007.

Background Information

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

Keppel Seghers, a subsidiary of KIE, is a leading provider of comprehensive environmental solutions and services ranging from consultancy, design and engineering, technology and construction to operations and maintenance of facilities, as well as investments (via DBOO or BOO, BOT) in such projects. 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.

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.

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 2007, Qatar Gas Transport Company Ltd. (NAKILAT) has signed an agreement with Keppel Offshore & Marine to jointly develop a world-class shipyard facility in the Port of Ras Laffan, Qatar. The shipyard will be suitable for the repair and maintenance of very large LNG carriers and a wide range of other vessels, and the conversion of tankers to Floating Production Storage & Offloading systems (FPSO) and Floating Storage & Offloading (FSO) systems.

Keppel Offshore & Marine has delivered its first jackup drilling rig ahead of time to Qatar’s Gulf Drilling International Ltd in November last year, and is providing drydocking services of a fleet of LNG carriers chartered by Qatargas.

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

Ang Lai Lee
Senior Executive
Group Corporate Communications
Tel: (65) 6413 6427
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Attachments:

The signing ceremony was witnessed by (back, from left to right) the Heir Apparent of Qatar, His Highness Sheikh Tamim Bin Khalifa Bin Hamad Al-Thani and Mr Wong Kan Seng, Deputy Prime Minister and Home Affairs Minister, while signing the award of the tender was (front, from left to right) Mr Ali Al-Abdullah, Director-General of Urban Planning and Development and Mr Lim Chee Onn, Executive Chairman of Keppel Corporation.