millionairemind wrote:Keppel's proposal for divestment of Senoko Incineration Plant selected
By Imelda Saad/S Ramesh, Channel NewsAsia | Posted: 14 September 2008 1150 hrs
SINGAPORE: Operations at the Senoko Incineration Plant are to be divested. For this, the government has selected the proposal from Keppel Integrated Engineering and Keppel Infrastructure Fund Management Private Limited.
The tender is worth an estimated price of S$462 million.
A joint statement from the Finance and Environment & Water Resources Ministries and the Monetary Authority of Singapore said the final price will be determined at the completion of the divestment, expected by the middle next year.
The Senoko Incineration Plant is one of four waste-to-energy incineration plants in Singapore.
It currently treats 2,100 tonnes of waste per day to produce 34 megawatts of green electrical energy.
The government issued a request for proposal in January this year to divest the Senoko plant.
The aim is improve efficiency in the waste management sector through greater private sector involvement and create opportunities for the public to invest in the infrastructure sector. A total of five bids was received for the project.
Under the new entity, the Singapore government will procure incineration services from the infrastructure trust, with operations conducted by Keppel Seghers Engineering - the environmental engineering arm of Keppel Integrated Engineering.
Keppel said it will inject the plant into a green business trust and list it, making it the first such listing in the world.
Chua Chee Wui, CEO, Keppel Integrated Engineering, said: "It will have a global portfolio comprising primarily environmental management assets.
"We believe this green business trust will offer eco-friendly investors the opportunity to participate in green projects, while at the same time enjoy stable and sustainable returns." - CNA/vm/ms
First such listing in the world usually performs badly, that is my bias. Look at CitySpring, greedy management. However, we have to look at the prospectus first.