Mr Lim Chee Onn, Executive Chairman, Keppel Corporation,

Excellencies and distinguished guests,

Ladies and gentlemen

Introduction  

1.             I am pleased to join you this evening for the opening of the Keppel Seghers Ulu Pandan NEWater plant, Singapore’s fourth and largest NEWater plant to date. 

2.             In the last 40 years, we have worked hard to build a secure, reliable, diversified, and sustainable supply of water for Singapore.   We now have our Four National Taps firmly in place.  They are water from local catchments, imported water, NEWater and desalinated water.  Together, these four Taps ensure that Singaporeans will always have an adequate and reliable supply of water, and need never go thirsty.

Success of NEWater

3.             As a nation, we can be proud of how we have overcome our water challenges.  NEWater, in particular, is a Singapore success story.  Produced using advanced membrane technologies, NEWater allows us to use each drop of water more than once, and so multiply our effective supply of water.  It is a key pillar of our efforts to become self-sufficient in water.

4.             Public acceptance of NEWater in Singa­pore is high.  To date, more than 300 companies have taken up NEWater.  About 80 of them use NEWater for industrial processes. They include wafer fabrication plants and electronics companies such as Chartered Semiconductor, Seagate and 3M Electronics. These firms value NEWater because it is ultra-clean, and have substituted potable water with NEWater.  Other commercial customers such as Century Square and Tampines Mall use NEWater for washing purposes and for their cooling systems. 

5.             In addition to commercial and industrial needs, we use NEWater for drinking, by mixing small quantities of it with reservoir water.  Our early head start and success in this area has generated interest in other countries facing water shortages.  Australia is now considering recycled water as an alternative source to meet its water needs.  One Australian newspaper recently asked PUB for several bottles of NEWater to conduct blind taste test with the Australian public.  NEWater topped the test, with a third of respondents picking it as the best-tasting water ahead of rainwater and bottled water!  

6.             Together, our four NEWater plants can meet more than 15% of Singapore’s water demand today, well ahead of the original target date of 2010.  Demand for NEWater has increased several-fold over the years, especially from new wafer fabrication plants and petrochemical companies, and it is likely to rise further.  To meet this growing demand, the Ulu Pandan NEWater plant has expanded its capacity from 25 to 32 million gallons of water per day.  Two other NEWater plants – Kranji and Bedok – have large-scale expansion plans.  PUB will also bring forward the construction of the fifth NEWater Factory at Changi which will produce 50 million gallons per day.  Hence by 2011, our NEWater plants will have the combined capacity to meet 30% of Singapore’s water needs, double the original target.  This puts us in a strong position to meet any future uncertainties in water supply.

7.             The ramp-up of NEWater capacity has yielded significant operational efficiencies and economies of scale. Coupled with the decrease in membrane costs in recent years, we have been able to lower the price of NEWater from the original $1.30 per cubic metre to $1.15 per cubic metre.  Today, I am pleased to announce a further price reduction.  From 1 April 2007, PUB will reduce the price of NEWater from $1.15 to $1.00 per cubic metre.   This will benefit all NEWater customers, and will translate into lower costs for businesses.

A Vibrant Water Industry

8.             Our investments in NEWater and other major water-related projects such as the Marina Barrage and the Deep Tunnel Sewerage System have helped to create a diverse and vibrant water industry in Singapore, with more than 50 international and local water companies operating here.

9.             One way to spur the development of the water industry is through greater collaboration between the public and private sectors, or what we call Public-Private Partnerships (PPP).  The Ulu Pandan NEWater Plant is one PPP project.  Keppel Integrated Engineering designed and built the plant, and will own and operate it to supply NEWater to PUB under a long-term contract.   The experience and track record that local companies gain from managing such large-scale projects will help them to expand into new markets and manage similar projects abroad.

10.        Besides public-private collaborations, we are investing in R&D to maintain our competitive edge in the water industry.  We have schemes to encourage commercialisation and early adoption of new technologies, and are attracting international companies to site their R&D, engineering, manufacturing and headquarter operations in Singapore.  Over the past year, the water industry has seen two of the largest water companies in the world, General Electric Water and Siemens Water Technologies, establish R&D centres here. Other major water companies such as CH2MHill, Black & Veatch and Delft Hydraulics have also increased their presence here. 

11.        We welcome more R&D investments from local companies and research institutions.  Keppel will be investing $50 million in an environmental R&D centre in Singapore, which will employ up to 50 researchers.  On the academic front, the Nanyang Technological University (NTU) is developing the Nanyang Environment & Water Research Institute.  The Institute will coordinate research efforts and programmes involving local and international leaders in the field.  It will also conduct postgraduate training and help build up a critical mass of top-rate researchers for the water industry.  In addition, NTU is partnering our newest university – UNSW Asia – to establish the Singapore Membrane Technology Centre.

12.        I am confident that these investments will produce a vibrant water ecosystem in Singapore. Coupled with our strengths in environmental and water management, we can boost Singapore’s water industry and our standing as a global hydro-hub.  

Conclusion 

13.        Today’s opening ceremony of our fourth and largest privately-run NEWater plant marks an important milestone in Singapore’s water supply.  Our NEWater capacity is growing, and we are building up new capabilities to compete in the global market.  All this is possible because of the continuing support of all Singaporeans, and the commitment and resourcefulness of PUB, Keppel Integrated Engineering and other key players in the water industry.  It is now my pleasure to declare the Keppel Seghers Ulu Pandan NEWater Plant open.