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Keppel Seghers has signed a framework agreement with Guangdong GuangYe Environmental Protection Industrial Group Co., Ltd (GuangYe) for the joint development and investment of environmental infrastructure projects in Guangdong Province.


CONTRIBUTING TO GUANGDONG’S DEVELOPMENT EFFORTS

The framework agreement outlines the collaboration of the two companies for the development of a near-term pipeline of water and solid waste treatment and management projects – amounting to nearly RMB 6 billion (approximately S$1.2 billion) – for numerous cities and counties across the vast area of Guangdong province.

Guangdong’s gross domestic product (GDP) is the largest in China. It is also one of China’s fastest growing provinces with its GDP rising 14.5% to RMB 3.06 trillion in 2007, and devotes no less than 2.5% of its GDP from 2004 to 2006 to environmental protection.

Mr Chua Chee Wui, CEO of Keppel Integrated Engineering (KIE), said, “Guangdong’s potential is immense. The province has always been the locomotive of China’s economic growth since the ‘reform and opening up’ policy was launched in 1978. It is now on the cusp of transforming to a more sophisticated model of development. During this exciting time, Keppel is proud to partner GuangYe, a key Guangdong Province SOE specialising in environmental projects, in making a contribution towards the sustainable development of a new Guangdong.

“Incidentally, Keppel’s very first project in China was in Guangdong Province in 1995. We are an old friend of Guangdong. This latest collaboration with GuangYe therefore holds special meaning for Keppel.

“Keppel’s market leadership and global track record in environmental solutions, coupled with GuangYe’s local network and resources, will once again set us apart from our competitors in the industry.”

Chairman of GuangYe Group, Mr Wu Liang said, “We are extremely pleased to partner Keppel in our efforts to bring sustainable development concepts to Guangdong Province. This partnership also represents a significant step in Guangdong GuangYe Environment Protection Co Ltd’s efforts in bringing technology, know-how into Guangdong’s environment facilities.”


STRENGTHENING BILATERAL TIES

The inking of the framework agreement with Keppel formed part of Mr Wang Yang’s first visit to Singapore as Guangdong Party Secretary. He led a delegation of senior provincial officials together with an over 400-member strong delegation representing about 200 Chinese companies to Singapore, at the invitation of Deputy Prime Minister Mr Wong Kan Seng.

Delegates from the Guangdong GuangYe Group visited various business units in the Keppel Group. The 19-member Guangdong GuangYe delegation was headed by Mr Wu Liang, Chairman of Guangdong GuangYe Asset Management.

Delegates met with Mr Teo Soon Hoe, Group Finance Director of Keppel Corporation and Mr Chan Soo Sen, Director (Chairman’s Office) of Keppel Corporation, where they got a bird’s eye view on the development of Keppel Bay.

During their visit, they were given a brief of Keppel Group’s activities in China and fostered closer relations with senior management of the Group.

The Chinese delegates also visited the Keppel Seghers Ulu Pandan NEWater Plant to understand first hand Singapore’s water management strategy and also the operations of the NEWater Plant. Despite being Singapore’s largest NEWater Plant and providing more than 50% of Singapore’s NEWater needs, delegates were impressed with the plant’s compact footprint – the size of four football fields.

The official delegation led by Party Secretary Wang Yang and Mdm Zhang Xiao Kang, China’s Ambassador to Singapore also visited Singapore Refining Company (SRC). The delegation was also given an overview of the refinery with a nameplate capacity of 290,000 barrels per day.

Keppel Seghers has 70% of the imported waste-to-energy market share in China and is involved in the development of waste-to-energy plants across China, including cities like Suzhou, Shenzhen, Tianjin, Jiangyin and Guangzhou. It has also executed several wastewater treatment projects in Guangdong province.

Keppel FMO, the facilities management division of KIE, is in a 25%-75% joint venture with Guangzhou Baiyun International Airport Ground Handling Service Company Limited to provide operations and management services to the Guangzhou Baiyun International Airport since 2004.

Earlier in April 2008, Keppel Land, the property development arm of Keppel Group, announced that it will jointly develop the first premium waterfront homes in the affluent Pearl River Delta region of Zhongshan, located on MoDao Island in the Shenwan Town of Zhongshan City.

When completed, it is expected to yield about 300 high-end luxurious villas with private berths and 2,500 condominium units and serviced apartments, with a total gross floor area of 408,000sm.