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Centre for Liveable Cities Knowledge Hub

Box Story: Rethinking Water Sustainability with Public-Private Partnerships

Discover how the National Water Agency, PUB, works with the private sector to secure Singapore’s water supply.

To effectively secure Singapore’s water supply, the National Water Agency, PUB, has adapted its procurement strategies over time, reflecting changes in the business environment and industry capabilities. Initially, the PUB outsourced only infrastructure construction, keeping design and supervisory work in-house. However, it now also outsources design and construction to the private sector, while still operating its own plants. The PUB has also employed PPPs for some plants, where private entities are responsible for the design, construction, operation and maintenance of water plants, facilitating the development of a robust and diverse water sector.

Desalination plant with an oval grass-covered roof. Trees, residential buildings and stadium in the background.

Aerial shot of Marina East Desalination Plant (Keppel Infrastructure)

The PUB pioneered the PPP model in Singapore, starting with a seawater desalination plant in Tuas in 2005. The PPP approach offers value by ensuring cost-effective operations, promoting technological innovation and contributing to the growth of Singapore’s private water industry. The PUB has since launched six more PPP projects (three desalination plants and three NEWater factories) following the inaugural project in 2005. A close working relationship between the PUB and private partners in the water sector helps to drive innovation, facilitating the process of setting broad technical specifications for projects to encourage creativity, while maintaining performance standards for the produced water.

The PPP model also expands business opportunities for private sector firms, allowing them to develop expertise and a track record in comprehensive project delivery, which is beneficial for future domestic and international projects.

To ensure the success and reliability of PPP projects, the PUB maintains in-house expertise to assess and monitor the performance of concession companies, ensuring they meet contractual obligations and performance standards. Safeguards are in place within PPP contracts, allowing the PUB to intervene if necessary to ensure continuous plant operation.

Overall, PPP initiatives have enabled the PUB to leverage on the technical expertise from the private sector. The PUB has successfully established mutually beneficial long-term partnerships with its partners, and will continue to work closely with them to support water supply management in Singapore.