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Award of New Yard Turnkey Contract (Phase 1)

The turnkey construction contract for Phase 1 of the New Yard Development project was awarded to Zhen Hua (S) Engineering Pte Ltd, a subsidiary of China Harbour Engineering Company Ltd (CHEC), for a total contract value of S$443.25 million.

The partnership was sealed with the contract signing by key management of Sembcorp Marine and CHEC on November 18, 2009. The event was graced by Mr Li Ming Lin, Minister Counsellor, Embassy of the People’s Republic of China in Singapore, and attended by representatives from China Communications Construction Company Third Harbour Engineering Company.

The contract for the Phase 1 development is part of the S$750 million projected costs of the Integrated New Yard Facility and relates to a land area of 73.3 hectares. This turnkey construction contract is for the design and construction of the proposed 4 VLCC drydocks, wharves, quays, piers and other ancillary works for the New Yard Phase 1 Development project.

Upon achieving commercial operations for Phase 1, Sembcorp Marine’s operations in Pulau Samulun will be relocated to the New Yard.

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