Water prices in Singapore set to reflect rising delivery costs despite technological efforts, says Amy Khor

SINGAPORE: The cost of water delivery in Singapore is increasing and may persist in this trend despite the incorporation of innovative technologies. This likely escalation will be reflected in the country’s water prices, says Dr Amy Khor, Senior Minister of State for Sustainability and the Environment.

In her address at the 18th World Water Congress in Beijing on Monday (11 Sep), Dr Khor emphasized water’s strategic importance for Singapore.

For the last 60 years, Singapore has strived to diversify its water resources using the “four national taps framework” to bolster water security. These taps capture water from local catchment areas, imported sources, Newater, and desalination.

Via a Facebook post updating her address, Dr Khor stressed the critical role of investments in water infrastructure and technologies. “In Singapore, water has always been a strategic cornerstone. Over six decades, our dedication to expanding our water resources through the 4 National Taps has been unyielding. Steady investments in infrastructure and technologies have made this possible. By right-pricing water, we’ve managed to sustain these investments financially.”

Like many nations, Singapore faces rising costs associated with water production and distribution. Chief among these challenges are mounting inflation and construction expenses.

Singapore’s water pricing underwent its most recent adjustment in 2017, which led to a 30% increase over two years and sparked a protest at Hong Lim Park.

Dr Khor’s Congress address detailed Singapore’s stringent water security approach, focusing on long-term planning, developing regulatory frameworks, and fostering private sector innovation.

At the Congress, Dr Khor cited the Deep Tunnel Sewerage System as an exemplar, terming it a “super-highway for used water” designed for infinite water recycling.

Singapore also introduced the Keppel Marina East Desalination Plant, a pioneering large-scale dual-mode desalination facility. During dry periods, it processes seawater and in rainy conditions, it leverages rainwater from the Marina Reservoir, which is more energy-efficient.

A key development is Tuas Nexus, Singapore’s first integrated water and solid waste treatment facility.

Dr Khor highlighted the facility’s capacity to process food waste and used water sludge concurrently, leading to a 40% increase in biogas production and enhanced electricity generation. This electricity supports both facility operations.

Looking forward, Dr Khor unveiled a two-fold strategy. First, the national water agency, Public Utilities Board (PUB) will team up with utilities, tech providers, and researchers to propel water innovation. Second, major investments are essential for a resilient and long-lasting water supply.

In 2021, Singapore implemented floating solar photovoltaic systems in its reservoirs, aiming to sufficiently energize all local water treatment plants. The dual purpose of these reservoirs, as emphasized by Dr Khor, is water storage and electricity production.

Industrially, there are forthcoming mandatory water recycling norms for new projects in water fabrication, electronics, and biomedical sectors.

Dr Khor rounded off, saying, “By 2035, these initiatives might yield daily water savings comparable to 15 Olympic-size swimming pools.”

Elaborating on her Facebook post, Dr Khor noted, “Like numerous countries today, Singapore confronts escalating costs in water production and distribution, influenced by inflation and construction expenses. Innovative technologies can only moderate these costs to a degree. Such costs will inevitably be incorporated into our water prices. Right-pricing, while expanding our water supply and regulating demand, ensures enduring water security for present and future generations.”

Yet, a scrutiny of the PUB’s annual reports reveals a Net Income of $2.4b after Government Grants and Contributions to the Consolidated Fund and Tax over the decade preceding FY2021. This puts Dr Khor’s assertions on financial constraints and potential price increments into question.