Press releases

SINGAPORE, 14 September 2008 - Keppel Corporation Limited is pleased to announce that the Singapore Government has selected its wholly-owned subsidiary, Keppel Integrated Engineering Limited (KIE)’s proposal for the divestment of the Senoko Incineration Plant (SIP) to an infrastructure business trust. While the SIP was awarded at an indicative price of S$462m, the final price will be determined upon its listing.

SIP will be injected into a newly set up infrastructure business trust (Trust) to be established by KIE and listed on the Singapore Exchange. KIE will act as sponsor and be a key strategic investor in the Trust. Keppel Infrastructure Fund Management Pte Ltd (KIFM), a wholly-owned subsidiary of KIE, will be the Trustee-Manager of the Trust. The divestment of SIP and listing of the Trust are expected to be completed by mid-2009.

Keppel Seghers Engineering Singapore Pte Ltd, the environmental engineering arm of KIE, will provide operation and maintenance services for SIP under a long term agreement with the Singapore government. Currently, SIP treats 2100 tonnes of waste per day to produce 34 MW of green electrical energy.

Chua Chee Wui, Chief Executive Officer of KIE, said, “In line with global trends towards greater environmental awareness and Keppel Group’s corporate strategy of embracing sustainable development, KIE intends to establish the Trust as a listed green business trust, which will be the first of its kind in the world. 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.”

Singapore’s fifth waste-to-energy (WTE) plant at Tuas currently under development and Asia’s largest operational NEWater Plant at Ulu Pandan willl be among the first assets to be considered for injection into the Trust.

The Tuas WTE plant will treat 800 tonnes of solid waste a day and generate more than 20MW of green energy. The Ulu Pandan NEWater plant currently supplies
148,000 m3/day of NEWater or 10% of Singapore’s total water needs. Both the fifth WTE and NEWater plants are built under Public-Private Partnership (PPP) initiative and will be owned and operated by Keppel for 25 years and 20 years respectively.

“With Keppel’s global network, domain knowledge in environmental technology and in-house fund management expertise, we are well-poised to identify and develop a strong pipeline of quality green environmental assets and projects beyond Singapore shores for the green business trust,” Mr Chua added.

More details of the IPO and listing of the Trust will be announced in due course.

This tender award will not have material impact on the consolidated net tangible assets and earnings per share of Keppel Corporation Limited for the financial year ending 31 December 2008.


Background Information

Keppel Integrated Engineering Limited (KIE)

KIE is the environmental technology and engineering division of Keppel Corporation Limited, a leading company in Singapore listed on the Singapore Exchange Securities Trading Limited.

Keppel Seghers, a member of the KIE Group, is a leading provider of comprehensive environmental solutions, including alternative energy, ranging from consultancy, design and engineering, technology and construction to operation and maintenance of facilities.

With a global footprint in more than 25 countries, KIE provides technology and fulfilment services for the treatment of municipal solid waste, hazardous and medical waste, wastewater and sludge treatment, potable water, desalination and home filtration systems.

To date, KIE has more than 350 water and wastewater projects and more than 300 thermal waste treatment solutions projects worldwide.

For further information, please contact:

Ang Lai Lee
Assistant Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: 64136427 / 82339299
Email: lailee.ang@kepcorp.com