Keppel Infrastructure and Keppel Infrastructure Trust, the the trustee-manager of Keppel Infrastructure Fund Management (KIFM), have signed a non-binding term sheet for the sale and purchase of a 50 percent equity stake in Marina East Water (MEW), owner of the Keppel Marina East Desalination Plant (KMEDP), for S$355 million ($255 million).
The KMEDP, Singapore’s fourth desalination plant, is capable of producing 137,000 cubic meters (30 million gallons) of fresh drinking water per day. The KMEDP is Singapore’s first and only large-scale dual mode plant, which can treat seawater or rainwater drawn from the Marina Reservoir.
The plant commenced commercial operations on June 29 and has a 25-year concession contract. KMEDP will continue to be operated and maintained until 2045 by Marina East Water O&M, a wholly owned subsidiary of Keppel Infrastructure, allowing MEW to benefit from proven water services and diverse operating capabilities of Keppel Infrastructure.