SM Goh Chok Tong at the Official Opening of Sembcorp’s NEWater Plant

First, let me congratulate Sembcorp Industries on the completion of the Sembcorp NEWater Plant. This is Singapore’s fifth and largest NEWater plant to date. With the addition of this plant, NEWater is well placed to play an increasing role in our journey towards water sustainability and eventual self-sufficiency.

Singapore’s Water Challenge

This was not always the case. In fact, up until a decade ago, Singapore only had two sources of water supply – water from local catchments, and water from Johor. Although they were adequate for our needs, the reliability of water supply was subjected to weather uncertainties. For example, in 1963, we experienced one of the worst droughts ever with reservoir stocks falling to a low of 26%. For ten months, we had to impose wide-scale water rationing to conserve what little water was available. At its height, water supply was completely cut off for twelve hours daily. All of us had to live with the inconveniences. I remember having to buy additional pails to store water.

Apart from the vagaries of the weather, dependence on imported water from Malaysia had also at times been a cause of tension in bilateral relations. Whenever there were serious bilateral disagreements, some Malaysian politicians would use water as leverage to pressure us to compromise in their favour.

Experiences such as these underlined the importance and urgency of a robust and diversified water supply. It was not just a matter of having enough to drink and wash. We were developing many industries which required reliable supplies of water. Investors who were contemplating large investments needed to be sure of the long-term prospects of our water supply, and our viability as an economy.

The public officials in charge of water have to be commended for their effort and creativity in seeking new solutions to meet our water needs. First, we have gone to great lengths to enlarge our catchment area and the storage capacity of our reservoirs. When the new Marina reservoir and the Punggol-Serangoon Reservoir are completed, we will be able to raise our catchment area from half of Singapore to two-thirds of Singapore. Achieving this is not simply a matter of increasing the physical capacity of our reservoirs. In fact, because of our highly urbanised environment, ensuring that the water that flows to our reservoirs is of good quality is no easy task. It requires very close coordination between land-use planning and water catchment activities. It also requires implementation of stringent anti-pollution measures and a wide network of storm water collection schemes. Beyond drawing up supporting policies and regulations, effective enforcement is key. Through these concerted efforts, we hope to further increase our catchment size to about 90% of Singapore’s land area.

Second, we have complemented our collection of fresh water with investments in R&D on NEWater and desalination. Of the two, NEWater which recycles water is more economical. By enabling the use of every drop of fresh water more than once, it has multiplied our potential water supply, hence helping to mitigate the effects of periods of extended dry spells.

As NEWater is free of chemical impurities, there is a strong demand from our industries. For example, wafer fabs like Tech Semiconductor are major users. Similarly, petrochemical companies such as ExxonMobil and Singapore Refining Company also prefer chemically pure water. As a result, the demand for NEWater has grown 15-fold from 4 million gallons per day (or mgd) in 2003 to some 60 mgd today. In this way, NEWater plays a critical role in supporting Singapore’s economic growth.

Because of our sustained efforts we have come a long way in water self-sufficiency. When the first of our two Water Agreements with Malaysia expires next year, we will not be renewing it. By 2061, when the second Water Agreement expires, we can also be totally self-sufficient if there is no new water agreement with Malaysia.

Exporting water solutions

Our quest to overcome our water challenges has required imagination and boldness. Beyond solving our water needs, it has also spurred a vibrant water industry, and created new growth opportunities for companies operating here. Through their involvement in Singapore projects, these companies have established track records that have made them much sought-after in overseas markets. For example, Sembcorp is making headway with a S$1.4 billion combined water & power plant in Salalah, Oman, as well as a S$2.4 billion combined water and power plant in Fujairah, UAE. Other Singapore-based companies, such as Keppel and Hyflux, have also done well in their overseas ventures. In all, some S$7.7 billion worth of projects overseas have been secured by our water companies between 2006 and 2009.

International recognition for Singapore’s growth as a global hydrohub is best exemplified by the success of the Singapore International Water Week (SIWW), a global platform for water solutions. The Water Week brings together industry leaders, experts and practitioners from around the world. Last year, the Water Week attracted more than 10,000 attendees from 82 countries, and more than 400 exhibiting companies. Into its third year now, the theme for SIWW this year is “Sustainable Cities: Clean and Affordable Water”, to focus on the need for cost-effective water solutions to provide safe drinking water at an affordable cost.

Launch of Sembcorp NEWater Plant

The launch of the Sembcorp NEWater Plant today will add to Sembcorp’s track record as a total water and wastewater solutions provider. With their new capacity of 50 mgd, NEWater can now meet 30% of our total water demand, up from 15% previously. Riding on its success, we will continue to expand our NEWater capacity by some 75 mgd so that NEWater will be able to meet 40% of Singapore’s total water needs by 2020.

Others around the world have now also begun to recognise the potential of water reuse. Global water demand is increasing alongside economic and population growth, and the threat of water shortage has become even more pronounced with climate change. Against this backdrop, international acceptance of water reuse as a viable long term water solution will grow. With NEWater, we have achieved notable success in adopting water reuse in a big way. We have closed the water loop, and demonstrated how water reuse can form part of a sustainable solution to meet water needs. In the process, we have become not only a leader in large-scale water reuse but also an international example for public education on water reuse.

Conclusion

In conclusion, since its introduction seven years ago, NEWater has developed into an integral part of our water supply as one of Singapore’s Four National Taps. This would not have been possible without the government’s vision, the resourcefulness of PUB and the water industry, and continuing support of all Singaporeans. On this note, I congratulate Sembcorp Industries on the completion of the Sembcorp NEWater Plant.

Thank you.