Tuesday, December 1, 2009

Keppel, SembCorp not hit by Dubai fallout

(SINGAPORE) Singapore's two major conglomerates with interests in the Middle East yesterday allayed fears of any fallout from Dubai World's credit woes.

'Keppel Corp does not have any exposure to Dubai World from its projects in the Middle East,' said a Keppel spokesman.

Keppel, through its infrastructure arm Keppel Integrated Engineering, is involved in Qatar's $1.5 billion Doha North Sewage Treatment Works - the largest greenfield wastewater treatment, water reuse and sludge treatment plant in the Middle East.

Keppel also has a $1.7 billion domestic solid waste management centre in Qatar, which is due to come on stream soon.

Major utilities and infrastructure player Sembcorp is also seen as unlikely to suffer any problems as a result of Dubai World's troubles.

Sembcorp's contracts are not with Dubai World, and its plants in the Middle East are for power generation and water treatment - both essential utilities.

Sembcorp has a 40 per cent stake in the US$1.7 billion 887 megawatt Fujairah 1 independent water and power project (IWPP) in Fujairah, another of the UAE's seven emirates, which are all separately run entities.





Sembcorp also recently secured finance from a consortium of international banks - none of them Dubai-linked - for the US$1 billion Salalah IWPP in Oman. This is scheduled to start operating in the first half of 2012.

Township development, building and infrastructure consultancy Surbana also said yesterday it will see little effect on its Middle Eastern operations.

'We do not really have projects in Dubai,' said a spokesman. 'Most of our Middle East projects are in Abu Dhabi.

'Because of the economic situation, some of our Middle East projects are facing some slight delays but they are still on-going.'

Surbana is lead consultant for the US$109 million Abu Dhabi Tourism Authority Headquarters, the US$110 million Abu Dhabi Corniche Waterfront Hotel and the US$230 million Emirates Morocco Hotel, among other projects.

The consultancy is also involved in the US$435 million redevelopment of Abu Dhabi's Al Bateen district.

Keppel shares closed 28 cents lower at $8.10, while Sembcorp shares ended the day 10 cents lower at $3.70.

Source: Business Times, 1 Dec 2009

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