Pangkalpinang City Water Treatment Plant

active

The municipal government of Pangkalpinang City awarded PT Darco Indonesia (“PTDI”)a contract to upgrade and operate a water treatment plant with the local government of Bangka Island, Indonesia. The total contractual value amounted to approximately S$130.8 million. Under the terms of the agreement, PTDI undertook Engineering Procurement & Construction (EPC), and Operation & Maintenance (O&M) of water treatment purification facilities in Pangkalpinang City, Bangka Island. During the EPC phase, PTDI was granted S$15.1 million to modernize and upgrade the plant’s capacity from 12,000m3/day to 36,000 m3/day within 18 months. After the upgrade, PTDI formed a Joint Venture partnership with the municipal water authority to operate and maintain the plant for the next 20 years. PTDI did not publicly disclosed on the amount of committed investment for the plant. The plant supplied purified water for domestic consumption as well as commercial and industrial usage. The project was expected to commence by middle of October 2007 and supply of drinking water will begin within 18 months from the date of agreement. Total recurring revenue PTDI approximated to S$115.7 million, a 70% share of the revenue as agreed in the contract. Together with the EPC revenue, the total order book of Darco ramed up to about S$600 million. PTDI is a subsdiary of Darco Water Technologies Ltd. (singapore).