September 2011

The Middle East can only benefit from Singapore's experiences in effectively addressing its water challenges and building a highly vibrant and global water industry.

For those of us residing in the arid Middle East, water shortages and Singapore may seem like an oxymoron. Southeast Asian location, tropical climate, an annual rainfall double the global average conjures up the vision of a lush, green and wet country, a stark contrast to the desert climate we live and work in. Many of us also know Singapore as an 'Asian tiger' economy, a trade hub with one of the busiest (and most efficient) ports in the world, and now an emerging global high tech and financial services hub. However, Singapore also has a water shortage problem, which has led to it being ranked 170th among a list of 190 countries in terms of fresh water availability by the United Nations. A densely populated island city state, with a population of over five million people squeezed into a land area of about 710 square kilometres, Singapore simply doesn't have the land to collect and store the heavy rain it receives due to competing needs of land for other uses. To compound that challenge, the country also lacks natural aquifers and groundwater.

When Singapore became an independent state in 1965, it relied mainly on imported water from Malaysia, supplemented by water from the local reservoirs. However, the government realised that these alone could not guarantee water security for the country's growing economy and population. By investing in R&D and adopting an integrated approach to water management, Singapore developed a diversified and sustainable water supply system based on Four National Taps: Local catchment water, imported water, NEWater and desalinated water. Ng Han Tong, Director, Industry Development of PUB, Singapore's national water agency pointed out that Singapore has closed the entire water loop through the Four National Taps. At present, 60% of Singapore's water requirements are met by local catchment water (rainwater collected through a comprehensive network of drains, canals, rivers, storm-water collection ponds and reservoirs) and imported water from Malaysia. NEWATER, which is high-grade reclaimed water produced from treated effluent at five NEWATER plants, meets 30% while the remaining 10% is met by desalinated water (supplied by the 136,000m3/day SingSpring SWRO plant).

In April this year, PUB awarded the contract for Singapore's second and largest desalination plant. Expected to commence operations in 2013, the new SWRO plant will add another 318,500 m3/day of water to Singapore's water supply.

With one of the most advanced water management systems in the world, Singapore is also becoming a global hub for water management knowledge, technology and services. Ng revealed that the Environment and Water Industry Programme Office (EWI), an inter-agency effort led by PUB, the Economic Development Board (EDB) and International Enterprise (IE) Singapore, is driving the city state's goal to be a global hub for environment and water for business, investment, research and technology.

Relevant experiences

As countries in the Middle East focus on addressing water security and embracing sustainable development, there is a lot they can learn from Singapore's example, not only in terms of managing their limited water resources, but also using the experience and expertise so gained to build a thriving and internationally competitive water industry. Largely dependent on energy-intensive seawater desalination plants, regional governments are increasingly looking to advanced technologies and tapping the private sector to build and operate wastewater treatment, reuse and recycling facilities and address inefficiencies in existing water operations.

"As a water-scarce country, Singapore has done a remarkable job in terms of urban water management," said Tan Cheng Guan, Executive Vice President, Group Business & Strategic Development, Sembcorp Industries, a leading global power and water company based in Singapore. "Companies from Singapore offer a collective wealth of expertise that can serve the needs of the municipal and industrial water sectors, from wastewater treatment and water reclamation to desalination and water supply using membrane and other water-related technologies. They have much to offer the Middle East and the world in terms of effective water solutions."

In the UAE, Sembcorp owns 40% of the $1.7 billion Fujairah Independent Water and Power Plant (IWPP). "We embarked on an expansion to increase the power generation capacity by 225 MW, which was completed in April 2009," said Tang. "The plant now has a power capacity of 893 MW and a desalination capacity of 100 MIGD. We are currently working to increase the desalination capacity by another 30 MIGD."

Besides the Fujairah 1 IWPP, Sembcorp has also established a second beachhead in the Middle East with an investment to develop, build, own and operate the Salalah IWPP in Oman. In November 2009, the company signed a 15 year power and water purchase agreement with Oman Power and Water Procurement Company to supply 445 MW of power and 15 MIGD of desalinated water. The total investment for the project, which is located in Mirbat, Salalah, is around $1 billion. Sembcorp owns 60% of the joint venture with local partner Oman Investment Corporation. The plant, which is currently under construction, is expected to be operational in the second quarter of 2012.

Tang also noted that Singaporean companies have also built up niche solutions to address some of the most complex water needs, such as the need for effective treatment of highconcentration and high-salinity industrial wastewater, as well as the supply of clean and sustainable alternative sources of water for industries.

Hyflux is another Singaporean success story in the MENA region with two major desalination projects in Algeria. In addition to the 200,000 m3/day Tlemcen plant, which it has completed, Hyflux is also building the 500,000 m3/day Magtaa desalination plant, billed as the world's largest SWRO plant. The MENA region accounted for 60% or S$343.8 million of Group revenue in FY2010.

An area of growing importance in the region, and one where Singapore could serve as a role model is wastewater ecycling, with the country making giant strides with NEWater, one of the 'Four National Taps' and an international poster child for reclaimed water. In fact, NEWater is supplied for both direct non-potable use and indirect potable use. "NEWater is supplied primarily to the industrial sector, for non-potable use, especially in the semiconductor industry and air-conditioning cooling towers of commercial and industrial buildings," said Ng. "Because of its high purity, a small amount is also blended with reservoir water before the same is treated conventionally for drinking purposes. Thus, NEWater is also incorporated into the drinking water system via indirect potable use."

Ng noted that globally, the Middle East included, only a very small percentage of wastewater is being recycled, which means the potential for water re-use is huge. He felt that in the Middle East, recycled water has tremendous scope for direct non-potable use in industries, as a cost-effective substitute for desalinated water.

Ng pointed out that in addition to freeing up potable water for other purposes, NEWATER also has a multiplier effect on water supply through recycling. He said, "In theory, we could reuse every drop of water infinitely. By using and reusing every drop of water, you can multiply the water supply many times over"

Once users reach a stage where they are not able to recycle NEWATER anymore, the used NEWATER is discharged into the sewers. "All sewage is treated at our water reclamation plants to treated effluent standard," explained Ng. "The treated effluent is subjected to an additional three-step treatment at the NEWATER plants to produce high grade NEWATER. It is a closed loop system, in the sense that every little drop of water, whether it is NEWATER or other used water, is actually multiplied many times."

The multiplier effect is nicely illustrated by Tan Yong Soon in his book 'Clean, Green and Blue: Singapore's journey towards environmental and water sustainability. By recycling one drop of water, Tan wrote, 0.5 drops of water can be obtained that can, in turn, be recycled to get 0.25 drops and then 0.125 drops and so on. Theoretically, recycling one drop of water results in another drop of water product, which is a multiplier effect of two. In other words, if 50% of water is recycled, the water supply could theoretically be doubled.

Singapore's success with water recycling has not gone unnoticed in the Middle East. Last year, Boustead Salcon Water Solutions, Singapore's oldest water treatment company and a subsidiary of the Singapore-headquartered global infrastructure engineering services specialist Boustead, was awarded a Dh55 million contract to design, engineer and construct a new water recycling plant for the enhanced treatment of Treated Sewage Effluent (TSE) in Abu Dhabi.

The contract for the 27,712 m3/day Al Wathba Enhanced Treated Sewage Effluent Treatment Plant, the UAE's first new water recycling plant, was awarded by Abu Dhabi Sewerage Services Company (ADSSC). Keith Chu, Boustead Salcon's Vice President for Corporate Marketing & Investor Relations, claimed the plant will recycle and recover 95% of the TSE supplied for use as high quality water in agricultural irrigation and horticultural landscaping.

"As the first of its kind in the UAE, this plant could lead the way as the model for water sustainability in the region," said Chu. "It draws on our experience in designing, engineering and constructing the Phase II Expansion of Bedok NEWater Factory, a 55,000 m3/day expansion of a NEWater facility for the PUB, which was also the first plant in the world to utilise commercial 16-inch RO membranes."

In Qatar, another Singaporean company Keppel Seghers has partnered with the Public Works Authority to develop the Doha North Sewage Treatment Works (Doha North STW), the largest green-field wastewater treatment, reuse and sludge treatment plant in the country. With a peak design capacity to treat wastewater of up to 439,000 m3/ day, Doha North STW will serve a projected population of over 900,000 by the year 2020. It is also the first wastewater treatment facility in Qatar to use advanced membrane and ultraviolet treatment technologies to reclaim high quality water for non-potable purposes.

Partnering with Public

A vital factor in the success of NEWater and something that countries in the Middle East will also have to address, is public education and acceptance. Ng pointed out that before launching NEWater, PUB set up a centrally co-ordinated programme to educate and inform public opinion on NEWATER, with the media roped in as a key partner. The media was taken on familiarisation tour to the US, where states like California have been injecting reclaimed water into aquifers for indirect potable use since the 1970s. Community leaders and members of parliament were also briefed so that they could spread the message to their constituencies. An international audit panel of eminent scientists and researchers was set up to give independent expert testimony on the reliability of NEWater.

In 2003, PUB set up the NEWater Visitor Centre to serve as the focal point of its public education on NEWater. The centre highlights the importance of water and how Singapore leverages technology to reclaim water using multimedia presentations and hands-on interactive games. Visitors are also able to view firsthand the operation of the advanced dual membrane and UV technologies used to produce NEWater. The only known parallel of its kind in the Middle East is the visitor centre set within the Global Water Sustainability Centre (GWSC) facilities at the Qatar Science and Technology Park (QSTP).

Tackling leakage

Singapore has been highly successful in reducing water leakage or Unaccounted for Water (UFW) in its water supply system, an area where the Middle East's track record is poor.

In fact, the high level of water leakage is partly responsible for the region's high per capita water consumption figures. According to a joint study conducted by the King Fahd University of Petroleum and Minerals (KFUPM) and the Massachusetts Institute of Technology (MIT), water leakage in pipeline networks across the Saudi Arabia results in losses amounting to SR3.075 million annually. At the MENA Business Forum held during the Singapore International Water Week 2010, a spokesperson of Saudi Arabia's National Water Company (NWC) said that in Riyadh alone, nearly 60% of the city's valuable water supply is lost through leakage in the 10,000km of pipes that transport water to its 4.5 million population.

Elaborating on Singapore's success in plugging leaks, Ng said, "Over the years, we have managed to put in place a very robust and water tight water supply network. As a result, Singapore's UFW stands at less than five per cent, one of the lowest in the world." Key measures implemented include using good quality cement and ductile iron pipes, and cement lined steel pipes for bigger mains, comprehensive metering and strict legislation against water theft or siphoning.

At the same time, a water conservation strategy based on pricing, voluntary and mandatory approach has also achieved a significant reduction in per capita consumption of water. Ng said, "In 2010, per capita water consumption in Singapore was 154/litres/day, a significant reduction from the mid 90s, when it stood at 175/litres/day. Our plan is to lower it further to 143/litres/day by 2020."

Hydrohub ambitions

Singapore's experiences in effectively addressing its water challenges helped the country build strong capabilities in water management, and subsequently, in the development of a strong water industry. Ng traced the start of the process to 1998, when PUB decided to re-visit membrane technology to recycle used water. The initial pilot in 1974 had been shelved due to astronomical costs and unreliable membrane technology.

The advancement in membrane technology and decreasing membrane prices in the late '90s encouraged PUB to initiate NEWater study in 1998, followed by the first NEWater pilot plant in 2000 and a full scale NEWater plant in 2003. Ng said, "PUB's proactive partnership approach of collaborating with public and private sectors led to the development of a strong local water industry, now exemplified by global successes like Hyflux, Sembcorp and Keppel. At the same time, we were also able to attract multinational water companies like Black & Veatch, CH2MHILL, Veolia, MWH and Siemens to set up their key operations in Singapore."

Singapore's water industry has shown significant progress since 2006, when it was identified as a strategic growth area. To date, the country is home to a vibrant water industry of more than 70 local and international companies.

Investments by water companies in the period of 2006 to 2010, when fully realised, is expected to add S$590 million of annual value-added to the economy and generate 2,300 professional and skilled jobs. Singapore-based water companies have also done well in serving the international market, with cumulative project value reaching S$8.4 billion over the same period.

Singapore's status as a global hydrohub is cemented in the development of a strong ecosystem of local and international companies, conducting a range of activities including research and development (R&D), test-bedding, engineering, manufacturing and headquarters operations. The aim is to triple the value-added contribution from the water sector to S$1.7 billion (0.6% of GDP) by 2015 and double the number of jobs to 11,000 by 2015.

To spearhead the development of the local water industry cluster and hone their competitive edge for the global market, the Environment & Water Industry Programme Office (EWI) was set up in May 2006 with $330 million funding from the National Research Foundation over five years. The funds are being channelled into basic and applied research to seek breakthroughs in water technologies, technology incubation, encouraging early adoption of new technologies, and also scholarships to groom talent in the industry. So far EWI has funded 61 R&D projects, of which 20 have been completed. This has resulted in 15 patents, two spinoff companies, two processes implemented in the PUB's water treatment installations and one technology used in a company's turnkey project.

Ng pointed out that one of notable EWI beneficiaries has been Siemens Water Technologies, which was awarded a S$4 million grant in 2008 under EWI's first-ever Innovative Technology Challenge to develop advanced desalination technology. EWI's challenge required demonstration of energy consumption of 1.5 kWh/m3, which is about half of what has been demonstrated with the best available technology. Since December 2010, a demonstration unit set up by Siemens at a PUB facility has been treating 50 m3/day of sea water.

At the recent Singapore International Water Week, Siemens reported that its electrochemical desalination technology has successfully reduced desalting energy by over 50% compared to best available technology. The company is now working with PUB to construct a full-scale customer pilot by 2013 at the latter's upcoming desalination testing facility in Tuas in order to transition the technology to a viable product offering.

Besides attracting investments into Singapore, the industry has also seen the export of water expertise to key overseas markets such as China and the Middle East. "Singapore companies cover different parts of the water supply chain, from component suppliers and technology providers, to EPC players to owner-operators," said Tan Cheng Guan of Sembcorp Industries. "In the case of Sembcorp, globally, our power facilities have 5,600 MW of gross capacity installed and under development, and our water and wastewater treatment facilities have a combined capacity of over six million m3/day. We also directly serve the water needs of around five million people worldwide."

Ng said that PUB is also working closely with Singaporean companies on several projects in the Middle East. He continued, "Some of these projects were identified through govt-to-govt interactions, while others were identified by the companies themselves. We usually support them with testimonials or if needed, we get directly involved in the project." In September 2009, National Water Company (NWC) appointed PUB Consultants (PUBC), a wholly owned subsidiary of PUB, as the independent auditor for the performance-based management contract for Riyadh City Water and Wastewater Services. As part of its role, PUBC will also conduct regular audits, determine performance payment incentives and withholdings and act as a facilitator between NWC and the management contractor in cases of disputes.

Tan believes that Singaporean multinationals also bring their own special strengths and competencies to the region. He said, "As a Singaporean multinational, we bring to the table not only a strong reputation for good management and strong corporate governance, but also a considerable track record. Our new IWPP in Salalah and the expansion of the desalination capacity in Fujairah will further strengthen our track record in the region."

Recently, Sembcorp was named the Water Company of the Year at GWI's 2011 Global Water Awards. Last year, the company won the International Water Association's (IWA) Project Innovation Award and the WateReuse International award. "Our capabilities are world class, as can be seen from the international recognition we have enjoyed," said Tan. "Furthermore, we have the ability to bring to the table strong financial backing for projects we are involved in. A case in point was our IWPP project in Salalah, where we were able to pull together strong support from both domestic and foreign banks despite the deal coming at the tail end of the financial crisis."

Keith Chu of Boustead Salcon pointed out that his company is one of a select group of Asian water treatment specialists (outside of Japan) to be pre-qualified with some of the world's largest EPC corporations like Alstom, Bechtel, Foster Wheeler, Hitachi Plant Engineering, Hitachi Zosen, Hyundai Engineering, Lurgi, Marubeni, Mitsubishi Heavy Industries, Mitsui Engineering, Samsung C&T and Toshiba. He continued, "Our track record of having delivered more than 800 projects in 58 countries gives us the advantage to design, engineer and construct very specialised water and wastewater treatment plants for multinational clients in international industries in oil & gas/petrochemicals, power generation, semiconductor manufacturing, high-tech manufacturing and other process industries where the requirements for quality water are much more stringent."

He pointed out that Boustead Salcon's latest project in Abu Dhabi demonstrates that a number of Singapore's water treatment methodologies and technologies can certainly be deployed to help the Middle East with its severe water scarcity issues. "New water recycling is especially relevant given that it reduces the dependence of the region on water from original sources and leads to greater efficiencies in water usage," observed Chu.

International Enterprise (IE) Singapore, under the Ministry of Trade and Industry, is also playing an important role in bringing Singaporean and overseas water companies together. It works closely with Middle East government authorities in identifying opportunities to collaborate, and to introduce the ideal Singapore partners. Among other things, IE Singapore organised the fifth Abu Dhabi-Singapore Joint Forum (ADSJF) in Singapore in January this year to explore potential collaboration in water and wastewater management.

Singapore International Water Week

EWI and PUB have successfully hosted the annual Singapore International Water Week in 2008, 2009, 2010 and 2011. The event serves as a marketing and branding vehicle for the Singapore water industry by forging dialogue amongst policymakers, water experts and industry leaders on water issues, challenges and solutions. Ng said, "SIWW adds to Singapore's profile as a global hydrohub by offering a platform for global stakeholders to address challenges and identify solutions at the governance, technology and business levels."

He noted that SIWW's success can be gauged from the following facts: the first edition in 2008 attracted 8,500 participants from 79 countries, while the 2011 edition attracted 13,500 participants from 99 countries, a growth of 60%. The total value of announcements for projects awarded, tenders, investments and R&D was S$317 million in 2008; in 2011, the same reached S$2.9 billion. Conclusion

While it may not be possible for the region to emulate everything that Singapore has achieved, there is a lot to be gained through knowledge sharing and by initiating and strengthening partnerships between the Singaporean and regional water industry. Countries in the Middle East can only benefit from Singapore's integrated solutions approach to water management, and its leadership in wastewater treatment and reuse.

© H2O 2011