Financial close reached for a waste-to-energy plant in Singapore

Hyflux and Mitsubishi Heavy Industries (MHI), through its project company, TuasOne Pte Ltd (TuasOne), have achieved financial close for the project financing of TuasOne Waste-to-Energy (WTE) plant in Singapore.

The total project cost before commercial operation commences is expected to be approximately S$750 million (US$545.2 million). TuasOne has secured a S$653 million (US$474.7 million) 27-year loan facility which will be used to finance the development, construction and start-up costs of the WTE plant.

The project financing is provided by DBS Bank Ltd, Malayan Banking Berhad Singapore Branch, Mizuho Bank Ltd and The Bank of Tokyo-Mitsubishi UFJ Ltd who are the underwriters and bookrunners for the facility. The lead arrangers in the project financing are DBS Bank Ltd, Maybank Kim Eng Securities Pte Ltd, Mizuho Bank Ltd and The Bank of Tokyo-Mitsubishi UFJ Ltd.

The project will be developed on a design, build, own, and operate (DBOO) basis. Construction and operation will be carried out by a special purpose company (SPC) in which MHI and Hyflux will own 25% and 75% shares, respectively.

The SPC will consign engineering, procurement and construction (EPC) work to a subsidiary of Hyflux. MHI subsidiaries in Singapore and Japan will supply incineration facility and power generation equipment. Operation and maintenance of the WTE plant will be jointly handled by a JV to be established by MHI and Hyflux.

The plant will have a processing capacity of up to 3,600 tons per day (tpd) and will be capable of generating 120 megawatts (MW) of electricity. The WTE plant with stoker furnace type incinerators and generators will go on-stream in the first half of 2019, and be operated, managed and maintained by the Hyflux-MHI Group consortium for a period of 25 years.