Singapore water market analysis from Bluefield Research
On 28 July 2016, Singapore’s state utility PUB awarded CH2M a consultancy service contract for the new 137,000 m3/d Jurong island desalination plant. Desalination and water reuse are targeted to make up for 70-80% of Singapore’s total future water supply – from 55% currently, reducing the country’s dependence on local Malaysian imports.
What Singapore lacks in terms of project volume and demand diversification, it has compensated with a push for advanced technologies, including smart water, and regional positioning. European and US firms looking for a foothold into Southeast Asia will likely reconsider their Singapore outpost going forward as the market tightens and alternative opportunities open up. Hyflux has vowed to pursue increased growth outside a tight market in Singapore, and will have to balance its bid strategy based on power market volatility.
In this Research Note, Bluefield water experts analyze the impact of this new plant on impact on future bids, current player competition, and the role of foreign investment (includes list of Singapore Desalination, Water Reuse and Sewerage Projects).
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- Downward pressure on margins, hinging on power price, shape future tender bids.
- Hyflux pressured to manage expenses of growing EPC order book.
- Singapore solidifies position as showcase market for foreign players