SINGAPORE - National water agency PUB has selected BESIN-UEN Consortium as the preferred bidder for the nation's fifth NEWater plant, it said in a release on Thursday.

The Consortium is led by leading Chinese water utilities company BEWG International and Singapore-listed firm UE NEWater, and will enter into an agreement with PUB by October this year.

The plant is expected to start operations in 2016 and will add another 50 million gallons of high-grade recycled water every day to Singapore's water supply.

It will be the second NEWater plant in Changi. The other three are located in Bedok, Kranji and Ulu Pandan.

NEWater is one of the country's four sources of water. It currently meets 30 per cent of water demand. This is set to go up to 55 per cent by 2060. Singapore's other sources of water are desalinated water, reservoirs, and imported water from Malaysia.