Keppel Corporation wins $5.4 b Hong Kong waste management contract
The infrastructure arm of Keppel Corporation has won a HK$31 billion (S$5.4 billion) contract to design, build and run the first integrated waste management facility in Hong Kong.
Keppel Infrastructure Holdings secured the work in league with China Harbour Engineering Company.
The facility will be housed off the coast of Shek Kwu Chau, an island to the south of Lantau Island.
Keppel Infrastructure has a share of HK$11.3 billion in the deal, with an addition of up to HK$9.6 billion for escalation provisions and other contingencies, said Keppel yesterday.
A China Harbour unit will undertake the engineering, procurement and construction phase. This will involve a reclamation of a 16-ha area, designing and building breakwaters and the integrated waste management plant and related port facilities on the reclaimed island.
During this phase of the contract, the Keppel Infrastructure unit will provide its proprietary waste-to-energy technology and build and run other facilities, including the mechanical treatment plant.
Keppel Infrastructure Services will then operate and maintain the facilities for 15 years after they are completed in 2024.
Keppel Infrastructure chief executive Ong Tiong Guan noted that the project will contribute to Hong Kong's sustainable urbanisation, while reinforcing Keppel's leadership in waste-to-energy technology and operations.