Hyflux has received a letter of intent for a contract from the General Authority for the Suez Canal Economic Zone (SCZone) to build the Ain Sokhna Integrated Water and Power Project in Egypt.
The EPC contract is valued at $500m. Hyflux will also secure a 25-year operation and maintenance contract for the project.
The project will include the construction of a desalination plant that will have a capacity to produce 150,000 cubic metres of water per day.
Work will also involve the construction of an on-site combined cycle gas turbine power plant, with a capacity of 457MW. The facility will generate power and supply electricity to the desalination plant, while surplus power will be dispatched to the grid.
Construction work is expected to start after contract terms are finalised. The project is expected to have a material financial impact on Hyflux for the financial year ending 31 December 2016.
Hyflux executive chairman and group CEO Olivia Lum said: “The entry into the Egyptian market presents exciting opportunities for Hyflux. We are delighted to be awarded the project and honoured to be given this opportunity to work with SCZone.
“This project is significant to us because it is our first integrated water and power project abroad and demonstrates our ability to put together an innovative solution that is recognised internationally.”