PUB, Singapore's national water agency, and Hyflux, through its subsidiary Tuaspring, has signed a 25-year water purchase agreement for a desalination project in Tuas.

The desalination plant will be constructed under a design, build, own and operate model.

Under the agreement, Tuaspring as the concession company, will deliver desalinated water to PUB over
a period from 2013 to 2038.

The desalination facility is expected to commence operations in 2013.

The project will add another 70 imperial million gallons or 318,500 cubic meters of desalinated water per day to Singapore’s water supply, and the first-year price for the desalinated water is $0.45 per cubic meter, the company said.

Hyflux is a water solutions company, with operations and projects in Southeast Asia, China, India, the Middle East and North Africa.