Singapores national water agency PUB has signed a water purchase agreement with Hyflux subsidiary Tuaspring for the delivery of desalinated water to the utility.

Under the agreement, Tuaspring will supply desalinated water over a 25-year period from 2013 to 2038.

The desalination plant will be built in Tuas and will add 318,500 cubic metres of desalinated water per day to Singapores water supply, with a price of $0.45 per cubic metre for the first year.

The plant is expected to begin operations in 2013.