AcuComm Waste Business Finder

Hong Kong - Waste Management Facility

01/12/2017 | Project Number: 000036

Key Project Facts

Country: Location:
Hong Kong Shek Kwu Chau
   
Principal Facility Type: Facility Type:
Integrated/mixed facilities Waste-to-Energy, Waste Processing, Recycling
   
Principal Waste Type: Waste Type:
MSW Municipal Solid Waste, Glass, Metals, Plastics
   
Development Phase: Value:
Contract Award US$ 3,968,711,193
   
Capacity (tonnes/year):
1,095,000
   
Commission Date:
Q4 2024
   

Project Updates

Date Change made
01/12/2017 Keppel Seghers and Zhen Hua Engineering secure DBO contract.
25/09/2017 Tenders being assessed; EPD anticipates awarding contract by end of 2017/early 2018.
30/03/2017 Tendering process in progress.
06/12/2016 Tender issued.
27/11/2015 Court rejects challenge.
20/11/2015 Court of Final Appeal to rule on legality of EPD's EIA report.
14/01/2015 Court of Final Appeal to hear case against the project.
12/01/2015 FC approves funding.
09/12/2014 FC vote pushed back into December.
24/11/2014 FC to vote on funding proposal before the end of November.
28/10/2014 Funding proposal scheduled for FC meetings in October/November 2014.

Construction of a WtE and mechanical treatment facility.

On 1st December 2017, Keppel Infrastructure Holdings and China Harbour Engineering Company, through their respective subsidiaries, Keppel Seghers Hong Kong and Zhen Hua Engineering, announced they have secured a project to design, build and operate (DBO) an Integrated Waste Management Facility (IWMF) off the coast of Shek Kwu Chau, which is to the south of Lantau Island. The contract was awarded via a competitive international tender called by Hong Kong's Environmental Protection Department (EPD). The total cost of the project is estimated at HK$31 billion.

The IWMF will be Hong Kong's first IWMF for municipal solid waste (MSW). As a key part of Hong Kong's waste management strategy, it will be able to reduce the total volume of waste treated at the facility by more than 90%, thus extending the lifespan of landfills. Currently, Hong Kong landfills its non-recycled waste.

The IWMF will comprise a waste-to-energy (WTE) plant, a mechanical treatment plant and ancillary facilities, which include an administration building, visitor centre, port handling facilities, as well as desalination and wastewater treatment plants.

The engineering, procurement and construction (EPC) phase will be undertaken by Zhen Hua and will involve the reclamation of an area of about 16 hectares, the design, engineering and construction of breakwaters, as well as of the IWMF, and its related port facilities on the reclaimed island.

During the EPC phase of the contract, Keppel Seghers will provide its proprietary WtE technology as well as WtE project implementation and execution of the mechanical treatment plant, power island and desalination facilities.

Subsequently, Keppel Infrastructure Services will undertake the operation and maintenance (O&M) of the facility for 15 years after it is completed in 2024. For its roles in the EPC and O&M phases, Keppel Infrastructure's share of the total contract is approximately HKD 11.3 billion, with up to an additional HKD 9.6 billion for escalation provisions and other contingencies.

WtE Plant

Contracted to treat about 3,000 tonnes per day (tpd) of mixed municipal solid waste (MSW), the WtE plant will feature Keppel Seghers' proven WtE technology with its air-cooled grate, boiler design, and advanced combustion control system. In addition, the WtE plant will also use Keppel Seghers' flue gas cleaning system, ensuring that the plant's emissions will comply with Hong Kong and EU standards.

Capable of producing approximately 480 million kWh of gross electricity per year, the surplus electricity beyond plant consumption will be exported into the grid. The exported energy will power up to 100,000 households and help reduce 0.44 million tonnes of carbon dioxide emissions per year.

The facility will receive the MSW in enclosed containers via boat from the refuse transfer stations on Hong Kong Island and Kowloon. At the reception hall of the WtE plant, MSW from the containers will be discharged to a waste bunker. It will then be fed into incineration furnaces for combustion.

Bottom ash, fly ash and air pollution control residues produced from the incineration process will be collected, fly ash and air pollution control residues will be pre-treated and then disposed of at the West New Territories Landfill in Nim Wan or its extension.

Mechanical Treatment Plant

The 200 tpd mechanical treatment plant will sort and recycle of glass, plastics, and metals. The separated materials will be transported back to Hong Kong for further processing into end-products.

Other Facilities

An on-site desalination plant will supply process water for the IWMF and a wastewater treatment plant will ensure that all effluents are treated and re-used as process water in either the WtE or mechanical treatment plant, or for general washing and landscape irrigation within the IWMF.

Project Preparation

In 2008, the EPD launched detailed Engineering Investigation (EI) and Environmental Impact Assessment (EIA) studies for two potential sites for an IWMF project. The EIA Study was completed in January 2011 and approved in January 2012. The location selected by the EIA Study for the IWMF was an artificial island near Shek Kwu Chau, which was chosen in preference to a site at Tsang Tsui Ash Lagoons in Tuen Mun.

In April 2014, the Hong Kong legislature delayed a decision on the future of the Shek Kwu Chau project and the extension of the Tseung Kwan O landfill (see Project 1928) until 7th May. Both projects needed to receive consent from the legislature's Public Works subcommittee before they could be put before the Finance Committee (FC).

On 27th May 2014, the Public Works Subcommittee recommended the IWMF Phase 1 project to the FC for consideration and approval of the funding proposal. Although the FC was originally due to make a decision in October 2014, an opposition campaign of filibustering in Legco caused numerous delays. However, the FC finally approved funding for the project on 9th January 2015.

On 13th January 2015, just days after funding was approved for the project, the Hong Kong Standard reported that a Cheung Chau resident has been granted permission by the Appeal Court to take his case against the building of the Shek Kwu Chau plant to the Court of Final Appeal. The resident, Leung Hon-wai, argued that the incinerator was very close to Cheung Chau and harmful materials emitted by it would harm the health of people on the island.

On 26th November 2015, the Court of Final Appeal heard a challenge to whether the director of the EPD can approve an EIA report on an incinerator project that the department itself conducted - and having approved its own report, whether it can then issue to itself the permit for incinerator construction. The five-judge panel rejected the challenge, thus clearing the way for the project to proceed.

Prequalification of tenderers was completed in December 2015. Contractors or consortia which had been shortlisted under the pre-qualification exercise were invited to submit tenders in November 2016.

In September 2017, a spokesperson for the EPD told AcuComm that the tender for the IWMF Phase 1 DBO contract closed in June 2017 and the tenders were being assessed.

Contact Information

Contractor/Engineer
Contact Dr Ong Tiong Guan Phone
Job Title Chief Executive Officer Fax
Email [email protected]
 
Company Keppel Infrastructure Holdings
Address 1 HarbourFront Avenue #05-05
Keppel Bay Tower
Singapore
098632
Singapore
Phone 65 6278 1800
Fax 65 6278 0777
Email [email protected]
Web www.kepinfra.com
Contractor/Engineer
Company Zhen Hua Engineering
Address 19/F, China Harbour Building
370-374 King's Road
North Point
Hong Kong
Phone 852 28878118
Fax 852 25120427
Email [email protected]
Web www.chec.bj.cn
Contractor/Engineer
Contact Ms Ivana Chua Phone 65 6413 6436
Job Title Assistant General Manager, Group Corporate Communications Fax
Email [email protected]
 
Company Keppel Infrastructure Holdings
Address 1 HarbourFront Avenue #05-05
Keppel Bay Tower
Singapore
098632
Singapore
Phone 65 6278 1800
Fax 65 6278 0777
Email [email protected]
Web www.kepinfra.com
Government Body
Contact Mr Tommy Cheung Phone
Job Title Chairman of the Finance Committee Fax
Email
 
Company Legislative Council of the Hong Kong SAR (Legco)
Address Legislative Council Secretariat, Legislative Council Complex, 1 Legislative Council Road, Central
Hong Kong
Hong Kong
Phone 852 3919 3333
Fax 852 2537 1851
Email [email protected]
Web www.legco.gov.hk
Government Body
Contact Mr Chan Ying-lung Phone
Job Title Assistant Director Fax
Email [email protected]
 
Company Government of Hong Kong, Environmental Protection Department
Address 15/F & 16/F, East Wing, Central Government Offices
2 Tim Mei Avenue
Tamar
Hong Kong
Phone 852 2824 3773
Fax
Email [email protected]
Web www.epd.gov.hk
Waste Projects across the world

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