Sembcorp Industries Ltd (Singapore)

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SembCorp Utilities (SU), a subsidiary of SembCorp Industries Ltd, provides multi-utility services for 35 industrial customers on Jurong Island in Singapore. These include demineralised water (32,600m3 per day), cooling and refrigerated water (2.86million m3 per day) and wastewater treatment via three dedicated facilities on an O&M basis. The company has two wholly owned utility subsidiaries in Singapore; SUT Sakra and SUT Seraya, which serve 27 corporate customers as well as other SembCorp subsidiaries in Singapore’s Jurong Island.

 

In July 2010, following a bid announced in April 2010, SU held 98% of Cascal NV’s equity. This resulted in the company having two broadly distinct service arms: SembCorp (industrial water and wastewater services) and Cascal (municipal water and wastewater services).

 

SU – Industrial water activities

 

SembCorp Utilities was established in 1999 to gain O&M and BOT contracts for municipal and industrial water and wastewater projects in the region. SembCorp Water’s 18% stake in Cathay International Water was sold back to Cathay and Cathay International Overseas Holdings for USD44.8million in June 2003.

 

SU - water and wastewater treatment capacity, 2012 (m3 per day)

 

Water

 

 

 

Country

Municipal

Industrial

Total

Singapore

0

4,215,912

4,215,912

China

1,030,000

176,080

1,206,080

Indonesia

313,600

0

362,400

Philippines

81,000

0

81,000

Oman

69,000

0

69,000

UAE

591,800

0

591,800

South Africa

156,500

0

89,500

United Kingdom

270,000

174,000

444,000

The Caribbean

17,000

0

17,000

Chile

77,000

10,300

87,300

Panama

76,000

0

76,000

Total

2,661,900

4,344,292

7,006,192

Wastewater

 

 

 

Country

Municipal

Industrial            

Total

Singapore

0

17,568

17,568

China

0

115,200

115,200

Philippines

10,200

0

10,200

South Africa

63,400

0

63,400

Chile

118,000

0

118,000

Total

191,600

132,768

324,368

 

Cascal, number of people served internationally

 

Country

Water

Sewerage

Total

UK

420,000

0

420,000

Philippines

189,000

189,000

189,000

Indonesia

1,160,000

0

1,160,000

Chile

132,000

512,000

512,000

Antigua

83,000

0

83,000

Panama

440,000

0

440,000

Caribbean

80,000

0

80,000

South Africa

452,000

452,000

452,000

China

2,331,000

0

2,331,000

Grand Total

5,287,000

1,153,000

5,667,000

 

Cascal NV

 

Biwater was founded in 1968 and in the 1970s it moved into sewage treatment hardware and developed a number of export markets. In 1989 it acquired the Bournemouth & West Hampshire Water Companies. Biwater is a privately owned company, specialising in water treatment and sewerage engineering. Biwater Capital Plc was set up in 1998 for international concession contracts. The company has been seeking bids in most of the currently active international markets, with a balance between wastewater and water provision. In 2000, Biwater Capital was renamed Cascal as a 50/50 joint venture with Nuon of the Netherlands. June 2006 saw Biwater buy back the 50% stake in Cascal from Nuon NV. Nuon paid USD130million for its holding in the joint venture in March 2000. Biwater bought out Nuons’s share in 2006 and in February 2008, Biwater sold 42% of Cascal NV on the New York Stock Exchange. In April 2010, SembCorp made a bid for Cascal’s market listed equity. The bid was supported by Biwater and by July 2010, 92.3% of Cascal’s shares were held by SembCorp. The stake cost SembCorp USD191.7million. As of 2011, SembCorp held 98% of Cascal. 

 

Cascal NV, profit and loss account

 

YE 31/03 (USDmillion)

2006

2007

2008

2009

2010

Water supply turnover

101.4

107.2

133.2

N/A

N/A

Water contracting turnover

9.3

14.5

27.5

N/A

N/A

Group turnover

110.6

121.7

160.6

163.4

181.8

Operating profit

31.5

36.2

40.2

36.8

38.4

Pre-tax profit

23.1

15.7

22.3

33.2

30.5

 

Cascal NV, regional breakdown of revenues

 

Year ended March 31 (USDmillion)

2006

2007

2008

2009

2010

United Kingdom

67.9

75.1

94.8

83.7

81.2

South Africa

13.4

13.8

21.7

20.3

24.5

Indonesia

9.5

11.1

11.4

13.0

14.7

China

0.0

2.9

10.0

20.9

31.6

Chile

6.8

6.4

7.6

11.3

15.3

Panama

0.0

6.2

8.8

10.7

11.1

The Philippines

2.1

2.4

2.9

2.9

3.0

Holding Companies

1.2

0.2

0.7

0.6

0.4

Revenue from continuing operations

100.8

118.6

157.8

163.4

181.8

Discontinued operations (Mexico)

9.8

3.1

2.9

0.0

0.0

Total reported revenue

110.6

121.7

160.6

163.4

181.8

 

UK

 

SembUtilities UK provides water services to industrial customers on the Wilton International facility on Teesside, including 120,000m3 per day of raw water and 48,000m3 per day of demineralised water. This was acquired for GBP106million and the company has invested GBP259million in the facility. The facility is adjacent to Northumbrian Water’s GBP145million Bran Sands wastewater treatment complex.

 

Biwater was the first company to acquire a UK statutory water company, East Worcester Water, in 1988. This company was sold to Severn Trent in 1993. Bournemouth Water (founded in 1863) and West Hampshire Water (founded in 1893) were both acquired in 1989 and merged in 1994. The company has 202,600 connections, serving a resident population of 430,000 which rises to 500,000 in the summer. In 2010 it was renamed SembCorp Bournemouth Water. Demand has eased from 169 Ml per day in 1995-96 to 147 Ml per day in 2011-12, in part due to metering with 61% of household accounts now being metered and 15% network leakage.

 

SembCorp Bournemouth Water Plc financial highlights

 

YE 31/03 (GBPmillion)

2008

2009

2010

2011

2012

Water supply turnover

36.93

37.51

38.31

40.45

42.35

Non-regulated turnover

9.73

5.46

1.26

2.61

2.42

Group turnover

46.66

42.87

39.57

43.05

44.77

Operating profit

15.40

13.00

13.99

15.02

15.93

Pre-tax profit

10.91

7.57

13.11

9.07

9.56

 

Meter penetration in 2007 reached 50% and 55% by 2009-10 following the installation of 26,860 meters. 18,500 further meters are to be installed by 2015. In 2005, the company refinanced its debt by issuing GBP65million of index linked wrapped bonds under the Royal Bank of Scotland’s Artesian programme. These bonds are repayable by 2033 and carry a coupon of 3.084%, with an inflation-related indexation charge on their principal value. Leakage in 2009-10 was 21.8Ml per day against a 2010 target of 22.2Ml per day.

 

Oman

 

2010

Salalah

15 year O&M

desalination

 

A 69,000m3 per day facility as part of a USD1.1billion independent water and power project. SembCorp is providing the industrial water O&M services under a 12 year power and water purchase contract with the Government.

 

Antigua

 

2009

Antigua

23 year BOT

83,000, desalination

 

Cascal Water Antigua (now SembCorp (Antigua) Water) was acquired in December 2009. SembCorp holds a 17,000m3 per day BOT awarded by the Antigua Public Utilities Authority in 2004. There are also two resort desalination BOTs covering 17,000 people in Boinaire and Curacao.  

 

Philippines

 

1997

Subic Bay

30 year concession

189,000 water & sewerage

 

The Subic Water and Sewerage Company Inc. (Subicwater) is a joint venture (30% SembCorp) with local partners, serving Subic Bay Freeport and Olongapo City. Subicwater was established together with the Subic Bay Metropolitan Authority (SBMA) and the Ologapo City Government to undertake the project by means of a twenty five year concession contract (extended to 30 years in 2003), which is due to expire in 2027 and has a 25 year extension option.

 

Subicwater took over the operation and maintenance of the existing assets and is undertaking extensive refurbishment work, upgrading treatment works, pipework and rehabilitation and the extension of water distribution and sewerage networks. There are 32,000 water connections and 70km of water mains and 50km of sewerage networks.

 

Indonesia

 

1995

Batam Island

25 year concession

1,100,000 water provision

 

The Batam Industrial Development Authority (BIDA) awarded Cascal and its 50/50 local joint venture partners, Bangun Cipta Kontraktor (BCK) and Syabata Cemerlang a 25 year concession contract in 1995 to operate, manage and develop the water facilities on the island of Batam. The partners set up a local company, Adhya Tirta Batam (ATB) to fulfil their concession obligations. Cascal and BCK acquired Syabata Cemberlang in November 2002 and now have equal shares in ATB.

 

Batam Island has enjoyed exceptionally high investment and growth ever since it was designated a special development zone by the Indonesian Government. Non-revenue water has been reduced from 49% in 1995 to 23% in 2010.

 

Due to the high growth, water demand grew by 10% in 2002-03, with 69,000 customer connections. In 2003-04, connections rose by a further 18% to 81,000 and to 122,000 by 2007, with the volume of water delivered rising by 16% during the year. Adhya Tirta Batam served 1.1million people in 2012, compared with 150,000 at the outset. Coverage was 35% in 1995, against 98% by 2010, with all customers metered and supplied with WHO compliant water. In May 2008, PT Adhya Tirta Batam undertook to construct a new water treatment plant in Duriangkang, along with approval for a 20% tariff increase. The new construction is the third stage in the development of an integrated potable water system and follows the completion of earlier modules built in 2001 and 2004. The new treatment plant brought the total treatment capacity to 302,400m3 per day in 2009.

 

2008

Telang Kelapa

20 year concession

60,000 water provision

 

SembCorp holds 40% of PT Adhya Titra Sriwijaya, which has a concession for water provision to Sukarme, an industrial, commercial and residential area near to Palembang, with a total population of 160,000. The facility treats 11,200m3 of water per day.

 

Singapore

 

2008

Changi

25 year BOT

industrial water

 

SembCorp NEWater Pte Ltd (100% SembCorp) gained a 25 year NEWater agreement with PUB in February 2008, to design, build, own and operate Singapore's largest NEWater plant at Changi and supply PUB with 228,000m3 of NEWater a day from 2010. The first year price for NEWater is SGD0.29966 per m3. The first phase entered service in June 2009 and full operations started in 2010.

 

China

 

A BOT for a wastewater facility for the Nanjing Chemical Industrial Park (NCIP) in Jiangsu Province was awarded to SembCorp in 2003. SembCorp has a 95% stake in Nanjing SembCorp Suiyu, along with Nanjing Chemical Industrial Park Company (5%). The total cost of their project has been SGD101million. The first phase had an initial capacity of 12,500m3 per day from 2005 with an expansion to 30,000m3 per day from 2007. In September 2005, SembCorp acquired a 100,000m3 per day water treatment plant BOT serving the park.

 

In June 2005, SembCorp established an 80:20 joint venture to acquire, expand, own and operate a 35,000m3 per day integrated industrial wastewater treatment and industrial water recycling plant in the ZhangJiaGang Free Trade Zone in Jiangsu Province, China. The project has cost SGD65million and serves 100 industrial customers. In 2009 a 15,000m3 per day industrial effluent plant was opened, the first in China capable of receiving this wastewater without pre-treatment.

 

A joint venture contract to build, own and operate an industrial wastewater treatment plant in Tianjin Lingang Industrial Area (TLIA) was announced in 2007. SembCorp Utilities holds 90% of the joint venture company, SembCorp TLIA Wastewater Treatment Company. The CNY70million facility will treat industrial wastewater from chemical industries in TLIA and have a capacity of 10,000m3 per day. In 2009 the facility underwent an expansion to 20,000m3 per day at a cost of CNY86million.

 

In July 2008, SembCorp gained a 30 year (plus 20 year option) to own, manage and operate three water treatment works in the Shenyang Economic & Technological Development Zone in Liaoning Province, with a design capacity of 160,000m3 per day.

 

A 80% owned joint venture serving the Qinzhou Economic Development Zone in Guangxi Province was awarded a 50 year BOT contract to operate a 15,000m3 per day industrial wastewater treatment plant in 2010 and entered service in 2011. A potable water provision contract (80% held) for the Shenyang Economic and Technological Development Area has 600 industrial customers and 20,000 municipal customers. The project cost is SGD68million.

 

The China Water Company (CWC)

 

The China Water Company (CWC) was originally founded by AIDC, a company majority held by the Australian Federal Government. Thames Water Aqua International GmbH acquired 48.8% of CWC for USD20million, plus a USD50million capital injection in 2001. In November 2006, Cascal acquired 87% of the China Water Company Limited from Thames Water, Sime Darby (Hong Kong) and two minority shareholders. China Water has offices in Hong Kong and Shanghai and it owns majority stakes in four water service companies in China which are based in Xinmin and Qitaihe (in the North), Yanjiao (near Beijing) and Fuzhou (in the South East). The water service companies are all joint ventures with local water companies or development zones. SembCorp acquired the remaining 13% of CWC shares in 2010 for USD12.8million.

 

2008

Zhumadian

30 year concession

400,000 water provision

 

In June 2008 China Water acquired 50% of Zhumadian China Water Company, a joint venture in Zhumadian City, Henan Province (Zhumadian Bangye Water Group holding the remaining 49%). The JV invested USD25million towards the completion of a new 220,000m3 per day water treatment works which entered service in 2009 and USD16million on allied distribution infrastructure.

 

2008

Yancheng

30 year concession

1,000,000 water provision

 

In April 2008 Cascal acquired a 48% percent stake in Yancheng China Water Company. The new joint venture company, Yancheng China Water Company, which partners Cascal with the Municipality of Yancheng, formally commenced operations in May 2008. The facility treats 315,000m3 of water per day.

 

2004

Fuzhou

30 year concession

120,000 water provision

 

The Fuzhou CWC Water Company Limited (70% CWC) contract is a 30 year concession which started in December 2004. Fuzhou CWC operates the water supply assets of the Fuzhou Economic & Technological Development Zone (FETDZ) Water Supply Company in Fujian. Construction of the 125,000m3 per day WTW ran from 2004-2006.

 

2001

Qitaihe

30 year BOOT

220,000 water provision

 

The CWC Qitaihe (Heilongjiang) project (89% held by CWC) is for the construction and operation of water treatment works handling 100,000m3 per day. Construction took place in 2001-2003.

 

2001

Yanjiao

25 year BOOT

350,000 water provision

 

The CWC Yanjiao (Hebei) contract (92% CWC) covers water treatment works in the High Tech Development Zone handling a total of 80,000m3 per day, which was built between 2001 and 2003.

 

2000

Xinmin

25 year BOOT

114,000 water provision

 

The CWC Xinmin (Liaoning, 89% CWC) water infrastructure project covers one 30,000m3/day water treatment work, built in 2000-2001.

 

2000

Shenyang

 30 year BOOT

127,000 water provision

 

Shenyang SembCorp Water Co is 80% held by CWC. The facility treats 160,000m3 of water per day for municipal, industrial and commercial customers.

 

Chile

 

The Calama project (wastewater concession serving 150,000 people) was sold to ESSAN, the incumbent private utility in 2006. All contracts are 100% held. 


 

1994

Santiago

Perpetual

132,000 water & wastewater

 

Cascal acquired Servicos de Agua Potable Barechea SA (SAPBSA) and Aguas Chacabuco SA, two companies operating outside Santiago, with concessions serving medium to high quality residential and industrial areas in the North and East of the city. These have been grouped together as SembCorp Aguas Santiago SA and started supplying water in 1996. A water treatment works for the Pan de Azucar concession area was constructed in 2004. The company owns USD50million in water rights. Servicomunal and Servilampa were acquired by Cascal in June 2008. The businesses operate perpetually held, regulated water and wastewater concessions serving 23,000 customers in Colina, to the north of Santiago. Revenues of USD6-8million per annum are anticipated.

 

2002

Noranda

22 years

Industry

 

The USD6million SembCorp Aguas del Norte project provides 10,300m3 per day of treated wastewater to Xstrata in La Negra, Chile some 45km from Antofagasta. In 2009 the company negotiated an extension with Xtansa, increasing its supply volume by 30%.  

 

1994

Antofagasta

30 year concession

380,000 water & wastewater

 

Senmbcorp Aguas del Norte is the first WWTW PSP project in Chile. The Antofagasta Region II facility has a 92,400m3 capacity and serves one of the driest parts of the world which has only 3.3mm of rainfall per annum. The facility treats waste from the population and recycles the water, selling it on to industry and farms.

 

Panama

 

2002

Laguna Alta

30 years, BOOT

440,000 water

 

This is Panama’s first BOOT water project involving the construction of a 76Ml/day potable water treatment plant for Aguas de Panama. The contract serves people in the La Chorrera, Arraijan and Capira areas, west of the Panama Canal. The project was first signed in 2000, and construction started in 2003 with the IFC providing USD15million of the project’s USD25million funding. The facility entered service in 2004. Cascal acquired the contract in 2006. The Government announced in 2008 that it was seeking for an early termination of the contract and in August 2008 Cascal sought leave to the Supreme Court to protect its interests. As of 2012, it is controlled by SembCorp.

 

South Africa

 

1999

Nelspruit

30 year concession

390,000, water & sewage

 

In 2009, Cascal purchased the 10% of the Greater Nelspruit Utility Co that it did not previously own. The ZAR300million Silulumanzi concession covers the Maputo Development Corridor in Mpumalanga Province and is the fastest growing municipality in South Africa. This is the first full concession in South Africa.  Cascal has taken over billing and revenue collection while modernising the facilities and has focused the concession on improving and expanding service delivery to the townships.

 

In the first 2 years of operation 91km of new water mains were laid as well as 18km of sewers. At the same time thousands of unregistered connections were found and many household and mains leaks repaired. This has substantially reduced NRW and over 6Ml per day have been saved to date; over 8,000 broken meters have been replaced and a further 15,000 new meters have been installed. 78,000m3 per day of water is treated along with 44,200m3 per day of sewage.

 

1999

Dolphin Coast

30 year concession

62,000 water & sewerage

 

In May 2007, Cascal acquired 73.4% of Siza Water from Bouygues for USD2.9million. At the time, Siza Water provided water and wastewater services to approximately 50,000 people in the Dolphin Coast region of South Africa. The Borough of Dolphin Coast in Ballito is one of the main tourist resorts in South Africa and is experiencing rapid growth of both its resident population and its tourist industry. The concession is operated through Siza Water which will make USD172million of investments during the life of the concession. The population served varies between 30,000 (low season) and 100,000 (high season). Siza Water generated revenues of USD5.5million in 2006.

 

Contact Details

Name:

SembCorp Industries Ltd

Address:

30 Hill Street, #05-04,  Singapore 179360

Tel:

+65-6723-3113

Fax:

+65-6822-3254

Web:

www.sembcorp.com.sg

 

Ang Kong Hua (Chairman)

Tang Kin Fei (President & CEO)

Lim Joke Mui (CFO)