Keppel unit, partner bag HK$31b contract for Hong Kong's first integrated waste management facility

Crystallised palm oil is seen along Cheung Sha beach at Lantau Island in Hong Kong.
Crystallised palm oil is seen along Cheung Sha beach at Lantau Island in Hong Kong.PHOTO: REUTERS

SINGAPORE - Keppel Infrastructure Holdings Pte Ltd and China Harbour Engineering Company Limited have jointly secured a contract to design, build and operate an integrated waste management facility off the coast of Shek Kwu Chua, south of Lantau Island, Hong Kong.

The contract was awarded to their respective subsidiaries in an international tender. This project marks Hong Kong's first integrated waste management facility for municipal solid waste.

Keppel Infrastructure's share of the total contract is HK$11.3 billion (S$1.95 billion), with up to an additional HK$9.6 billion for escalation provisions and other contingencies. It is a wholly owned unit of Keppel Corporation.

The total contract is worth HK$31 billion, Keppel said in a media release on Friday (Dec 1).

The project's engineering, procurement and construction (EPC) phase will be undertaken by China Harbour's subsidiary Zhen Hua Engineering Co. This will involve a reclamation of a 16ha area, the design, engineering and construction of breakwaters, as well as of the integrated waste management facility and its related port facilities on the reclaimed island.

During the EPC phase of the contract, Keppel Seghers will provide its proprietary waste-to-energy (WTE) technology and build and running other facilities, including the mechanical treatment plant. Subsequently, Keppel Infrastructure Services will operate and maintain the facilities for 15 years after they are completed in 2024.