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CONFIDENTIA L
Report No. TO-557a
FILE COTY Copy No. 8To be returned to GENERAL FILES immediately
after use.
This report is available only to those members of the staff to
whose work it relates.Any further release must be authorized by the
department head concerned.
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
PUBLIC UTILITIES BOARD
SECOND POWER PROJECT
SINGAPORE
October 5, 1966
Projects Department
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CURRENCY EQUIVALENTS
U. S. $1 - M$3M$1 - U.S. $0. 33M$1, 000, 000 = U.S. $333,333
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S INGAPORE
PUBLIC UTILITIES BOARD SECOND POWER PROJECT
Table of ContentsPage No.
SU1ARY i - ii
I. INTRODUCTION 1
II. THE BORROWER 1Organization and Management 2
III. THE POWER MARKET 4Forecast of Sales 1Growth in DemandNew
Generating Plant Requirements
IV. THE MARKET FOR IWATER AND GAS 6W4ater Sales 6Capacity of the
Water System 6Gas Sales 7Growth in Demand for Gas and Stew
Plant
Requirements 7Sales Forecasts for IWIater and Gas 7
V. THE PROJECT 7Status of Engineering 8Estimated Cost 8Unit
Construction and Generating Costs 8
VI. FUTURE EXPANTSION PROGR11M 9Electricity Supply 9Water Supply
10Gas Supply 10
VII FINANCIAL ASPECTS 11Tariffs 11Accounting System 12Audit
12Present Financial Position 12Past Earnings 15Financing of the
Project 15Future Financing Requirements 16Future Earnings 17Future
Financial Position 18
VIII. CONCLUSIONS 18
This report is based on the findings of a Bank missionconsisting
of CoH. W1hite and G.B.H. Renger which visited Singapore inApril
and May 1966. CoH. White and A.R. Whyte prepared the report.
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List of Annexes
1. Actual and Estimated Sales 1963-1970.
2. Actual and Estimated kwh Generated & Sold.System I4aximum
Demand. Installed and FirmGenerating Capacity.
3. Chart showing Actual and Estimated Installed andFirm
Generating Capacity.
4. Site Plan of Pasir Panjang "All and "B" Thermal
PowerStations.
5. Estimated Cost of the Project.
6. Generating Costs in 1967 - Pasir Panjang "B" Thermal Power
Station
7. Balance Sheets - Electricity Department
8. Balance Sheets - All Departments
9. Details of Debt and Sinking Fund
10. Income Statements - Electricity Department
11. Income Statements - Water Department
12. Income Statements - Gas Department
13. Financial Ratios - All Departments
1h. Sources and Applications of Funds - Electricity
Department
15. Sources and Applications of Funds - All Departments
16. Assumptions used in Preparing Forecasts
MAP of Singapore Island
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List of Annexes
1. Actual and Estimated Sales 1963-1970.
2. Actual and Estimated kwh Generated & Sold.System M4aximum
Demand. Installed and FirmGenerating Capacity.
3. Chart showing Actual and Estimated Installed andFirm
Generating Capacity.
4. Site Plan of Pasir Panjang "A" and "B" Thermal
PowerStations.
5. Estimated Cost of the Project.
6. Generating Costs in 1967 - Pasir Panjang "B" Thermal Power
Station
7. Balance Sheets - Electricity Department
8. Balance Sheets - All Departments
9. Details of Debt and Sinking Fund
lOe Income Statements - Electricity Department
11. Income Statements - W4ater Department
12. Income Statements - Gas Department
13. Financial Ratios - All Departments
14. Sources and Applications of Funds - Electricity
Department
15. Sources and Applications of Funds - All Departments
16. Assumptions used in Preparing Forecasts
MAP of Singapore Island
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SINGAPORE
PUBLiC UTILflIES BOARD SEui'D POWER PR'JJECT
SU1MJMARY
i. This report covers the appraisal of the second stage of
thePasir Panjang "B" thermal power station with an installed
capacity of120 MN which is being constructed by the Singapore
Public UtilitiesBoard (PUB), A Bank loan of US$10.0 million
equivalent has been requestedto cover the foreign exchange cost of
the project, the total cost of whichis estimated to be the
equivalent of US$1300 million.
iio The Borrower would be the Public Utilities Board, which is
anautonomous statutory corporation of the Government of Singapore
establishedin 1963 to take over the assets, liabilities, and
responsibilities of theElectricity, Water and Gas Departments of
the Singapore City Council. Aloan of US$150. million equivalent was
made in 1963 (Loan No. 337-SI) tocover the foreign exchange cost of
the first stage of the Pasir Panjang"B" station and a second loan
of US$6.8 million equivalent was made in1965 (Loan No, 405-NA) to
cover the foreign exchange cost of the JohoreRiver W4ater Supply
Scheme.
iii. The PUB applied for a loan for the second stage of the
Pasir Pan-jang "B" station in August 1964 but the Bank informed the
Board that itcould not consider such a loan until one of the main
conditions of Loan 337-SI,the appointment of a General Manager,
acceptable to the Bank, had been met.The problem of recruiting a
suitable General Manager was subsequently dis-cussed by the Bank
with the Board and the Singapore Government. These dis-cussions
showed that because of the enlarged and continuously
increasingresponsibilities of the PUB it was desirable to have a
study made of theadequacy of its organization. A firm of
M4anagement Consultants was engagedby the PUB early in 1965 to
carry out such a study and their report wassubmitted in October
1965. The report made a number of recommendations,which in the
opinion of the Bank could be taken up for implementation onlyafter
a suitable General Mlanager had been appointed. In August
1965,Singapore was separated from M4alaysia and as a consequence
ceased to beeligible for a Bank loan. A General Manager, acceptable
to the Bank, hasnow been appointed and Singapore became a member of
the Bank in August1966.
iv. The project is technically sound, the estimated cost is
reasonableand arrangements for construction are satisfactory. Work
on site commencedin October 1964 and progress has been very
satisfactory'. The first 60 IMWgenerating unit went into operation
in August 1966 and the second 60 MW unitis scheduled to be in
service in October 1966.
v. Although the PUB's organization is unsatisfactory the
recentappointment of a competent General 1anager who is well aware
of presentproblems, and the measures being taken to recruit
experienced staff, havestaff trained overseas, to reorganize the
accounting system, and the
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arrangements agreed between the Bank and the Board regarding
action on theIManagement Consultants' report, should result in a
progressive improvementin the situation.
vi. Because of the imposition of high fuel and property taxes
theBoard's earnings, which had hitherto been satisfactory, fell
sharply in1965. In 1965 and 1966 the Board has failed to achieve
the minimum rateof return of 8% agreed under Loans 337-SI and
405-MA. However, theGovernment recently agreed to measures which
should ensure that the Boardwill earn at least 8% in 1967 and
onwards.
vii. As a result of these measures the Board's financial
positionshould improve considerably. It is estimated that it will
meet about 40%of its capital requirements from 1966-70 out of
earnings. This should resuIlin a sound ratio of debt to equity and
satisfactory debt service coverage.
viii. The project would be suitable for a Bank loan of US$10.0
millionequivalent for a period of 20 years, including a grace
period of one yearon amortization payments.
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SINGAPORE
PUBLIC UTILITIES BOARD SECOND POWER PROJBCT
I. INTRODUCTIOIT
1l This report covers the appraisal of the second stage of
thePasir Panjang "B" thermal power station with an installed
capacity of120 MW which is being constructed by the Singapore
Public UtilitiesBoard (PUB)e
2. The estimated cost of the project is M$39,O million
(US$13.0million). The Bank has been asked to make a loan to cover
the foreignexchange cost, estimated to be equivalent to US510.0
million.
3. The Borrower would be the Public Utilities Board. The
Bankmade a loan of US$1500 million equivalent in May 1963 (Loan No.
337-SI)to cover the estimated foreign exchange cost of the first
stage of thePasir Panjang "B" station with an installed capacity of
120 DM. Thisproject has been constructed on schedule and the
generating plant con-sisting of 2 - 60 MW units is now in
operation.
4. The Bank also made a loan of US$6.8 million equivalent
inFebruary 1965 (Loan No. 405-MA) to cover the estimated foreign
exchangecost of the Johore River Water Supply Project. Construction
of thisproject is on schedule. It is expected to be completed by
June 1967.
5. The PJB applied for a loan for the second stage of the
PasirPanjang "B" thermal station in August 1964 but the Bank
informed theBoard it would be unable to consider such assistance
until one of themain conditions of Loan No. 337-SI, the appointment
of a General 1Manageracceptable to the Bank, had been met. In
August 1965, Singapore wasseparated from Yalaysia and as a
consequence ceased being eligible fora Bank loan. A General Manager
acceptable tc the Bank has now beenappointed and Singapore is now a
member of the Bank.
6. 1The report is based on info nnation submitted to the Bank by
thePUB, and on the findings of a Bank mission consisting of C.H.
WJhite andG.BoH. Renger which visited Singapore in April and May
1966. C.H. Whiteand A.R. lhyte prepared the report.
II. THE BORROWER
7. The PUB is an autonomous public corporation solely
responsiblefor the electricity, water and gas utilities of
Singapore. It was estab-lished on May 1, 1963, by the Public
Utilities Ordinance of 1963. Underthis act the Electricity, Water
and Gas Undertakings, together with allrelated functions, services,
assets, liabilities and matters relatedthereto, were transferred
from the Singapore City Council to the PUB. TheBoard is a body
corporate with perpetual succession and a common sealwhich may sue
and be sued in its corporate name. It is established asone
financial entity but it is required to keep separate accounts
forelectricity, water and gas.
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Organization and MIanagement
8. The Board is composed of a Chairman, a Deputy Chairman,
andseven other members who are appointed by the Yang de-Pertuan
Negara(President of the Republic) for periods not exceeding three
years. Boardmembers are eligible for reappointment.
9. The PUB is required, with the approval of the Government,
toappoint and employ a General Manager who shall, subject to the
directionof the Board on matters of policy, be charged with the
direction of thebusiness of the PUB, its administration and
organization, and the admini-strative control of its employees. It
is also required, with the approvalof the Government, to appoint
and employ a Chief Financial Officer andChief Engineers for the
Electricity, Water and Gas Departments. TheGovernment is required
to consult with the Public Service Commissionbefore granting
approval of appointments to any of the above posts. Inaddition the
PUB is required, pursuant to agreements with the Bank inconnection
with the first power loan (337-SI), to obtain Bank approvalbefore
making appointments to the posts of General Manager and
ChiefElectrical Engineer.
10. The PMB may appoint such other staff as it considers
necessaryto carry out its functions. The appointment, dismissal,
and disciplinarycontrol of these employees are vested in the Board,
but the Government,with the consent of the Public Service
Commission, may require that, forcertain posts or classes of posts,
the Board exercises such functionson the advice of the
Commission.
llc The organization, duties, responsibilities and powers of
thePUB as prescribed in the Ordinance were established in
consultation withthe Bank prior to the first power loan being made.
At this time the Bankconsidered the provisions of the Ordinance
generally satisfactory, butit was concerned that the PUB wiould
lack sufficient freedom in the appoint-ment and control of its
staff and in certain other aspects of its opera-tions requiring
Government approval. A satisfactory understanding onthis matter was
subsequently established with the Government whichagreed in a
supplementary letter to Loan Agreement 337-SI that its powerswith
respect to the PUB would be exercised with due consideration to
theagreed desirability of giving the Board a high degree of
autonomy in theconduct of its affairs.
12. To initially fill the posts of Chief Financial Officer,
andChief Engineers of the Electricity, Wiater and Gas Departments,
CityCouncil Officers holding corresponding posts were transferred
to the Board.The existing staff of the Electricity, Water, Gas and
Treasurer's Depart-ments were also transferred to the Board. This
enabled the operation ofthe utilities to continue without
interruption but, as all departmentsof the City Council were short
of experienced senior staff, the Boardwas faced with a difficult
problem which up to date has not been satis-factorily solved.
13. When the Board was established a person suitable for
appointmentas General Manager was not available. As the post could
not be left
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vacant a senior civil servant was appointed Acting General
Manager, as atemporary measure. This arrangement proved most
unsatisfactory and the Bank,upon receipt of an application for a
loan for the second stage of the PasirPanjang "B" station, told the
PUB it would be unable to consider such a loanuntil a General
Manager, acceptable to the Bank, had been appointed. TheBank also
informed the Board of its concern regarding the number of
seniorposts which were still vacant, particularly in the
Electricity Department,and with the delay in reorganizing the PUB's
accounting system. It pointedout that in a supplementary letter to
Loan Agreement 337-SI the Board agreedto use its best efforts to
promptly fill vacant senior key posts and toreorganize its
accounting system in accordance with sound commercial account-ing
practices.
14. The problems of filling the post of General Manager and
other issuesin respect of which covenants had been entered into
under Loan No. 337-SI werediscussed by the Bank with the PUB and
the Singapore Government on severaloccasions. These discussions
showed that because of the enlarged and con-tinuously increasing
responsibilities of the PUB it was desirable to have acomprehensive
study made of the adequacy of its organization to cope withcurrent
and future functions and duties. The Bank therefore proposed
thatthe PUB engage a firm of Management Consultants to carry out
such a studyand to make appropriate recommendations. The PUB and
the Government agreedto this proposal and the foreign exchange cost
of the services of the con-sultants, R.W. Beck and Associates, of
Seattle, who were selected with Bankapproval early in 1965, was
included in the Water Supply Loan (No. 405-MA).It was also agreed
that the requested loan would be considered by the Bankonly after
the recommendations made by the consultants had been
consideredjointly by the PUB and the Bank, and measures for
implementing them had beensettled. The consultants' report, which
was submitted in October 1965, madea large number of
recommendations which in the opinion of the Bank could betaken up
for implementation only after a suitable General Manager had
beenappointed.
15. A General Manager acceptable to the Bank has now been
appointedand he assumed duty on July 18, 1966. Although there has
recently been someimprovement in the senior staff situation, it is
still unsatisfactory.Additional operating staff for the Pasir
Panjang thermal station has beenobtained but more is needed and
maintenance staff is urgently required. TheBoard is trying to
recruit such staff overseas and arrangements have beenmade with the
Central Electricity Generating Board in the U.K. to train PUBstaff.
The Board's auditors, Turquand Youngs & Co., have reviewed
theaccounting system and put up a report recommending changes which
wouldorganize the system in accordance with sound public utility
practices. Thereport was accepted by the Board and the auditors are
now assisting the PUBstaff to implement the recommendations. The
present Chief Finance Officeris over retiring age and a replacement
will have to be found in the nearfuture. It is essential for the
post to be filled by a competent and ex-perienced officer and the
Board is trying to recruit a suitable person. Anassurance has been
obtained from the Board that it will consult the Bankbefore
appointing a new Chief Finance Officer and that during the life
ofthe loan subsequent appointments to this post and to the posts of
GeneralManager and Chief Electrical Engineer will not be made
without prior con-sultation with the Bank. An assurance has also
been obtained from the Boa -d
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that the reorganization of its accounting system will be
completed as soonas possible and that within the next six months
the recommendations of theManagement Consultants will be considered
in consultation with the Bankwith a view to taking such action as
may be agreed between the Bank and theBoard.
III. THE POWER MARKET
16. Sales by the Electricity Department during the past five
yearsincreased at an average rate of 9.6% per annum, the increase
for 1965 being10.2%. The total number of consumers supplied has
risen from 106,530 in1961 to 169,260 in 1965, an increase of about
6 /.
17. The market for power can be broadly divided into five
maincategories:
(a) Lighting and Fan sales,(b) Domestic Power Sales,(c)
Commercial and Industrial Power Sales,(d) Public Lighting Sales,(e)
Large Industrial Power Sales.
Annex 1 shows sales for the years 1961-65, broken down into
these categories,wllich may be summarized as follows:
Percentage Five YearSales during Percentage Increase in
Average
1965 of 1965 over AnnualType of Use Millions kwh Total Sales
Previous Year Increase
Lighting and Fans 174 19.1 7.8 10.8Domestic Power 250 27.4 - 6.5
1/ 7.3Commercial and
Industrial Power 443 48.5 23.0 9.5Public Lighting 18 2.0 17.1
10.2Large Industrial Power 27 3.0 16.1 _ 2/
912 100.0 10.2 9.6
1/ Transfer of consumers from Domestic Power to Commercial
andIndustrial Power.
2/ Separate category for large industrial consumers from 1964
onwards.
Forecast of Sales
18. Sales forecasts for the years 1966-70 broken down into
categoriesare shown in Annex 1. The percentage increase per annum
for each categoryand for total sales are also shown in the
annex.
19. The forecasts show an average rate of increase in total
sales ofabout 15% per annum. This high rate is due to big increases
in sales tolarge industrial consumers, as without these sales the
average rate ofincrease would be about 9%, which is reasonable; if
anything, it is on the
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low side. The rates of increase shoun in u.i forecasts for
Commercial -anidIndustrial Power Sales are reasonable, for Lighting
and Fans and DomesticPower the rates are conservative and may well
be exceeded.
20. Although the forecasts of sales to large industrial
consumers, pre-pared by the Electricity Department on information
given by the EconomicDevelopment Board which takes into account the
slowdoirn in industrial expansionresulting from the separation of
Singapore from Malaysia in August 1965, havebeen scaled down, as
past experience has shown there is always a considerablelag in load
build-up with this type of consumer, the revised forecasts arestill
considered optimistic. However, as the surplus revenue per kwh
obtainedfrom such consumers is very small, the financial situation
would not beappreciably affected should the forecasts prove to be
too high.
Growth in Demand
21. The system maximum demand increased from 128.5 MW in 1961 to
192.5 IM;iin 1965 and is expected to reach 481 MW in 1970. A table
showing the actualand estimated kwh generated and system maximum
demand based on actual and esti-mated sales for the years 1961
through 1970, is attached as Annex 2. Thistable also shows
installed and firm generating capacity with and withoutspinning
reserve. By reference to the table it will be seen that firm
capacitn,excluding spinning reserve, allows for 1 - 60 MW unit and
1 - 25 Mil unit to beout of commission for statutory annual
inspection and overhauls. As theSingapore load has no seasonal
variation there is no period of the year wheninspection and
maintenance can be carried out without causing problems
ofavailability and it therefore has to be spread uniformly
throughout the year.
22. In order to safeguard continuity of supply in case of
breakdown, thepolicy of the Electricity Department is to provide a
spinning reserve equal tothe capacity of the largest unit in the
system. The firm capacity of thesystem, including spinning reserve,
shown in Annex 2, allows for 1 - 60 MWJ unitand 1 - 25 MW unit to
be out of commission for statutory inspection, plus aspinning
reserve of 60 Mi. While t e rovision of standby plant and
spinningreserve may appear to result in an 'large amount of spare
capacity,it is not considered unreasonable in view of the
maintenance problem mentionedabove, and the condition of some of
the generating plant (see paragraph 24).
23. A chart is attached as Annex 3 which shows the curve of
systemmaximum demand in relation to installed capacity, firm
capacity excludingspinning reserve, and firm capacity including
spinning reserve.
24. The chart shows that although firm capacity excluding
spinning re-serve would be sufficient to meet system demand prior
to the commission of thesecond stage of the Pasir Panjang "B"
station, it would be insufficient ifallowance is made for spinning
reserve. In actual practice the situation willnot be as good as
indicated on the chart as the availability of the free
pistoniinstallation at St. James cannot be relied upon and as three
of the 25 EW unitsin the Pasir Panjang "A" station are long overdue
for major overhauls. Thesecond stage of the Pasir Panjang "B"
station (the proposed project) is there-fore urgently needed.
New Generating Plant Requirements
25. If system lcad grows as expected additional generating
capacitywill be required in 1968 and the PJB plans to 2cvo 2 - "
MWl uxrOts in a
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new station at Jurong in operation by the end of that year, and
a third60 14W unit in operation in 1970. Should system load grow
slower thanpresently expected because of a lower rate of increase
in sales to largeindustrial consumers, then the first two units at
Jurong may not berequired until 1969 or 1970. As work on site,
apart from preliminaryclearing, has not yet commenced it is
doubtful if the first two 60 TV4units will be in operation before
mid-1969 in any case.
IV. THE MARKET FOR WATER AND GAS
WKater Sales
26. Sales by the Water Department during the past five
yearsincreased at an average rate of 5.1% per annum. In 1963 water
rationinghad to be imposed because of a severe drought and sales
were 11.7%below those of 1962. This also influenced sales in the
early part of1964. The IrWater Department estimates that water
sales will increase froman average of about 74 MGD (million gallons
per day) in 1965 to about98 I;GD in 1970 at an average rate of 6%
per annum. This appears reasonablein view of the population growth
and the active programs for improvinghousing and expanding industry
in Singapore.
Capacity of the Water System
27. At the time of water rationing in 1963 and e4rly 1964,
theaverage reliable dry weather yield or supply capacityi' of
Singapore'ssources was about 60 MrGD (as compared to average
productive capacity ofabout 70 YGD under normal rainfall
conditions). Since then, a new plantat Scudai River in Johore has
been completed which has increased thereliable dry weather supply
capacity by about 19 MGD and average supplycapacity by 30 MGD.
Other improvements at existing plants, eithercompleted or under
construction, should give the water system a totalreliable dry
weather supply capacity of 95 to 100 MGD by the end of 1966which
should be sufficient to meet demand until 1968. By that time,
thenew Johore River Project (Bank Loan 405-MA) should be in
operation,increasing reliable capacity to about 132 MOGD,
sufficient at least until1972. The Water Department also is
planning to increase the reliablecapacity of its sources on the
Island by the Seletar Scheme which basicallyis a sizable expansion
of storage capacity at existing water sources.if completed
according to the present tentative schedule, the Seletar pro-ject
wiould probably add about 18 MGD of reliable supply capacity by
1969for a total of about 150 MOD, which should be sufficient to
meet demandunder dry weather conditions until about 1976 or
1978.
28. From the above it appears that new source capacity recently
com-pleted or scheduled for completion by the Wiater Department in
the next fewyears should alleviate shortages of water source
capacity and prevent thenecessity for water rationing. On the other
hand, deficiencies in
1/ Tne total yield from water sources has to exceed the volume
of watersold by 10% to 12%,
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transmission and distribution capacity could hamper the
effective utiliza-tion of available supply capacity. A
comprehensive study of transmissionand distribution is necessary
and was included under the Johore RiverIWater Supply Project (Loan
405-MA) to serve as the basis for developingand implementing a
rational improvement and expansion program, but to datethe W,ater
Department has not arranged for this study.
Gas Sales
29. Sales of gas during the past four years increased at an
averagerate of 17% per annum. This high rate of increase is mostly
due to anumber of large Government housing schemes, which are
supplied with gas fordomestic purposes, being constructed during
the period and to the relative-ly small distribution system being
extended to areas not previouslysupplied with gas.
30. The Gas Department estimates sales during the next five
yearswill increase at an average rate of about 13.5% per annum.
This appearsreasonable as the Government intends to build more
large housing schemeswhich will be supplied with gas for domestic
purposes.
Growth in Demand for Gas and New Plant Requirements
31. Present demands for gas average about 4 million cubic
feetper day and this is expected to increase to about 6 million
cubic feetper day by the end of 1969. The production capacity of
the existingplant is about 6.5 million cubic feet per day and
should therefore besufficient to meet demand up to 1969. To meet
increasing demands afterthis date the Department plans to have a
new plant with a capacity of3 million cubic feet per day in
operation in 1969.
Sales Forecasts for IWJater and Gas
32. Forecasts of sales prepared by the Water and Gas
Departmentsare shown in Annexes 11 and 12.
V. THE PROJECT
33. The project proposed for Bank financing is the second stage
ofthe Pasir Panjang "B" thermal station with an installed capacity
of 120 4W.w
34. The generating plant, which will be similar to that
installed inthe first stage, will consist of 2 - 60 MYW
turbo-alternator sets and2 - 560,CC0 lbs. per hour boilers. The
turbines will be designed to oper-ate with steam conditions of 1250
lbs. per square inch and 9500F, Theboilers-will be of the
semi-outdoor type, suitable for operation onBunker "C" fuel oil
which will either be delivered by ship to an exist-ing jetty or by
pipeline from an adjacent oil refinery. Sea water willbe used for
cooling purposes.
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35. The station will be operated as a base load plant and
during1967, the first full year of operation with the first and
second stagein operation (installed capacity 2h0 MiU), the output
is estimated at 1,205million kwh, representing an annual load
factor of 60%. The output ofthe station will be stepped up from 11
kv to 66 kv by four 72 iTA trans-formers and fed into the 66 kv
transmission system.
36. A site plan of the station is attached as Annex 4.
Status of Engineering
37. The project has been planned and designed by the PUB's
Con-sultants, Merz & l1cLellan of London, who were responsible
for the firststage. Construction is being supervised by the
Consultants.
38. Work on site commenced in October 1964 and progress has
beenmost satisfactory. The first 60 IMW unit went into operation in
August 1966and the second unit is scheduled to be in service in
October 1966. Bids onan international competitive basis were
obtained for civil works and allmajor items of plant and equipment,
and all contracts have been awardedwith Bank approval.
Estimated Cost
39. The total estimated cost of the project and the estimated
costof the principal features are shown in the following table. As
work onsite is nearing completion the estimates are expected to be
very close toactual costs. A more detailed breakdown of costs is
given in Annex 5.
ForeignExchange Local TotalCosts Costs Costs
(M$ millions)
Civil works 2.45 3.56 6.01Generating plant 22.61 3.87
26S48Electrical works 2.93 0.79 3.72Miscellaneous 020 0.10
0.30Engineering 1.81 - 1.81Site supervision - 0.70 0,70
TOTAIS 30e00 9.02 39.02
Totals expressed in Millions US$iorn 3.0 13.00
Unit Construction and Generating Costs
40. The estimated cost of the second stage of the Pasir Panjang
"B"station is M4$39.02 million or US$13 million which is equal to a
unit costof M$325 or US$108 per kw installed. The estimated cost of
the completestation is M$1016 million or US$33.9 million which is
equal to a unit
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cost of M$423 per kw installed or US$11 per kw installed, which
isreasonable.
41. The estimated cost of energy generated by the Pasir Panjang
"B"station in 1967, the first full year of operation with the first
andsecond stages in operation, is M 2.52 cents (us 8.4 mills) per
kwh sentout. This is a reasonable cost for thermal power. If the
tax on fueloil, which amounts to M$15 per ton (equal to about 40%
of the cost of theoil), were removed the cost per kwh sent out
would be M 2.11 cents(US 7.0 mills). Details of generating costs
are given on Annex 6.
VI. FUTURE EXPANSION PROGRA1
Electricity Supply
42. The Electricity Department's expansion program covering
theperiod 1966 through 1970 is estimated to cost M1$297.0 million
(US$99GO mil-lion). Provision has been made in the financial
forecast for this programwhich is designed to provide the
additional generation, transmissionand distribution capacity
required to meet the expected increase in systemdemand. Its
estimated cost is reasonable for the facilities to be provid-ed,
The program is made up of the following items:
Estimated CostExpressed in Millions o-
US-
(a) Completion of first stage PasirPanjang "B" station 10.40
3A47
1/ (b) Completion of second stage PasirPanjang "B" station 26.86
8.95
(c) First stage Jurong power station2 - 60 NW unitsTo be
completed late 1968 80376 26.92
2/ (d) Second stage Jurong power station2 - 60 MWJ units1 - 60
NW unit to be in commission 1970 31.05 10.35
(e) Expansion of existing 66 kv transmissionsystem - 1966-1970
24.73 8.24
(f) Expansion of existing 22 kv distributionsystem - 1966-1970
34e95 11.65
(g) Expansion of existing 6.6 and lowvoltage networks 1966-1970
77.h2 25.81
(h) M4iscellaneous expenditures 10.83 3.61
297.0 99.00
1/ Total estimated cost Y$39.02 million. Expenditure during1964
and 1965 N$12.16 million (US$4.O5 -aillion).
2/ Expenditure up to December 31, 1970, only. Total estimated
costM$36.79 million (US$12.26 million).
-
- 10 -
Water Supply
43. During the period 1966 through 1970 the Water
Department'sexpansion program is estimated to cost M$101eO55
million (US$33e85 million).The major items in this program are the
Seletar Scheme and the completionof the first stage of the Johore
River project which account for about 60%of the total cost. The
Department would like to add about M$28.5 million(US$9.5 million)
for the second stage of the Johore River project butthis has not
been included in the formal fo-ecast as other projectsalready in
the program (paragraph 27) make the completion of this
schemeunnecessary before 1976.
Gas Supply
44. Provision has been made in the financial forecast for the
GasDepartment's expansion program covering the period 1966 through
1970 whichis estimated to cost 14$18.95 million (US$6.32 million),
D'ajor items in theprogram are a new gas making plant with a
capacity of 3 million cubic feetper day which is scheduled to be in
operation in 1969, and the expansionof the distribution system.
-
- 11 -
VII. FINANCIAL ASPECTS
Tariffs
45. The PUB has authority to set tariffs without reference tothe
government though in practice tariffs are not varied
withoutconsulting or obtaining the approval of the Minister.
46. Under the terms of the Ordinance, the existing
electricityand water loans (Nos. 337-SI and 405-MA) and the
proposed loan, theBoard is required to maintain tariffs for the
sale of electricity,water and gas and hire of appliances which will
provide revenuessufficient to cover operating expenses, including
taxes if any, toprovide adequate maintenance and depreciation, to
meet sinking fundcontributions and periodic repayments on long-term
debt to the extentthat they exceed provisions for depreciation and
to create reasonablereserves. Supplemental Letters to the Loan
Agreements record thattariffs will be adequate to meet these
purposes if they yield an overallrate of return of not less than 8%
on the average value of total net fixedassets in operation. In
computing the return depreciation is charged ona straight line
basis in accordance with agreed lives for the Boardtsfixed
assets.
47. Until 1965 the Boardts tariffs were sufficient to yield
anoverall return well in excess of the required 8% although the
returnon the water department was only 4.2% in 1963 and 6.5% in
1964. In 1965the Government imposed a tax on fuel oil of M$15 per
ton representingabout 40% of the cost of fuel, and at the same time
increased substan-tially the contribution in lieu of taxes which is
known as the propertytax. Until the end of 1964 this was a fixed
contribution but it wasthen substituted by a tax which could more
realistically be termed aturnover tax and amounted to 6.7% of the
Board's gross revenues.
48. Mainly as a result of the increased taxes, the overall
rateof return fell sharply to 4.9% in 1965 and would have been only
5.2% in1966. However, prior to negotiating the proposed loan, the
Governmentagreed on measures which would bring the return back to
the requiredlevel for 1967 onwards. The fuel tax was rescinded as
from August 24,1966, the property tax was reduced to 4% of gross
revenues with effectfrom January 1, 1964, and electricity, water
and gas tariffs will beincreased on November 1, 1966. These
measures are reflected in the finan-cial statements (Annexes 7 to
15) which show that the overall returnshould increase to 6% in 1966
and should be about 8.5% from 1967 to 1970.
49. During the latter stages of negotiations the Bank was
informedthat the Government proposes to introduce an additional
measure wherebyif the Board's overall return in any year exceeds
8%, the excess revenuewould be paid to the Government subject to a
provision that the totalpayments, including the 4% property tax,
should not exceed 5.36% of grossrevenues. Since it is not yet clear
how this measure will be implemented.it has not be incorporated in
the financial forecasts but its probableeffect is shown in Annex
13. It would result in additional payments tothe Government of
about MS1.8 million in 1967 rising to about MS2.5million in 1970,
but these should not seriously affect the Board'soverall financial
position.
-
- 12 -
50. The new electricity tariffs will increase the average
chargesfor lighting and fans from 14.9 M cents to 15.2 M cents per
kwh, for domesticconsumers from 6.05 M cents to 7.0 M cents and for
commercial and industrialconsumers from 4.7 M cents to 4.9 M cents.
The average for all sales in1967 will increase from 6.6 M cents to
7.1 M cents, or by about 7.5%.The average tariff increase for all
water sales will amount to about 23%and for gas sales to about 7%o
Details of the revised water and gas tariffsare shown in Annex
16.
Accounting System
51. The PUB keeps separate accounts for the water, gas,
electricityand service departments. The latter covers transport and
other services,such as billing and collection, which are charged to
the three revenueproducing departments. Water, gas and electricity
meters are read monthlyby the same meter readers and one bill is
sent out for the three services.No analysis is made of receivables
and non-payment of a bill results in cut-off of all services. This
procedure works well and there is no problemconcerning uncollected
accounts. Accounts receivable and payable are keptfor the Board as
a whole. In the attached financial statements, receivablesand
payables are shown under the service department and the cash
balanceor deficit shown for each department is a theoretical figure
only, theactual balance in hand or deficit being that shown for the
Board as a whole.
52f, Under the existing loans the PUB was required to reorganize
itsaccounting system in accordance with sound public utility
practices. Afterconsiderable delay the Board appointed its external
auditors, Messrs.Turquand, Youngs and Company, to review and make
recommendations for a propersystem of accounts. The Board has
approved their report and the auditorsare assisting in carrying out
the necessary reorganization. Managementreporting is virtually
non-existent in the Public Utilities Board at presentand the Bank
has not received any regular financial reports from the
Boardhitherto although these have been frequently requested.
However, assuranceshave been received that financial reports will
be submitted promptly to theBank in future.
Audit
53. Independent auditors, Turquand, Youngs and Company, were
appointedin accorda-ne with the require-nents of Loan 337-SI. They
have recentlycompleted the audit of the 19133 and 1964 accounts and
thiese are shown inthe attached statements.
54. Assurances have been received that the Board's annual
accountswill continue to be audited by auditors satisfactory to the
Barik and thatcopies of the accounts and auditors report will be
submitted to the Bankpromptly after the end of each financial
year.
Present Financial Position
55. Detailed balance sheets of the electricity department for
1961-1965 are given in Annex 7, and summary balance sheets of the
Board as a
-
- 13 -
whole analyzed into the separate departments are given in Annex
8. Thefollowing is a summary of the balance sheets at the end of
1965:
(in millions of M$)All
Electricity DepartmentsASSETSGross fixed assets in operation
388.9 587.9Less: Accumulated depreciation 109,6 166e8
Net fixed assets in Operation 279.3 h211Work-in-Progress 18.6
33e6Inventories 1T3- 23.7Cash (see para. 65) (18.3) (6.7)Deferred
charges 0.8 1.9Receivables 26 6
Total current assets (2e2) 4h.5
TOTAL ASSETS 295.9 5002
LIABILITIESGeneral Trierve 42.0 75o6Sinking fund reserve 7417
ll9e5Capital contributions 13 r6 21.7
Total equi'y l303 2HE 8Debt 233,1 3 E4 5Less: Sinking fund
investments 74.7 119.5
__158c 225.0Payables, deposits, etcO 7.2 5T7.
TOTAL LIABILITIES 295.9 5002
Debt/equity ratio 55/h5 51/h9
56. The capital of the Board consists of a General Reserve, a
SinkingIFind Reserve, capital contributions from Government and
consumers and long-term debt. The General Reserve represents the
accumulated surplus on revenuieaccount which the Ordinance provides
shall be applied for the creation ofa general reserve or such other
reserves or capital fund as the Board maydeem appropriate. The
Ordinau.ce ma.kes no provision for dividends and nonehas been paid
but the Minister may require the Board to invest such fundsas are
not immediately required by the Board in securities authorized
forthe investment of trust funds.
57. Details of the Board's outstanding debt are given in Annex
9.The average rate of interest payable on all loans is about h.5%.
With theexception of the Bank loans and Singapore Government loans
made since 1963totaling I1$99.0 million, the Board's debt consists
of loans transferredfrom the City Council, which are subject to
sinking fund requirements.
-
58. The sinking fund debt shown in the balance sheet represents
onlythat portion allocated to the Public Utilities Board. A balance
of M$12e8million of the loans originally incurred is a liability of
the SingaporeGovernment although the Board acts as paying agent and
manages the sinkingfund investments,
5°. The sinking fund contributions are invested in sterling
Common-wealth securities and Singapore Municipality bonds. The
Government hassuggested that the PUB should transfer all of its
sterling investments,which amount to about 75% of the total, to
Singapore to be invested inSingapore Government Bonds. This would
result at present in a book loss ofabout iI$6 million but this
would be acceptable provided an equivalent yieldto maturity were
obtained on the new investment. Also, since there is noready market
for Singapore Government bonds, their maturity would have
tocoincide with the due date of the Board's loans. Alternatively
the Boardcould utilize the sinking fund contributions to buy back
its own bonds, ifyields on their purchase price are equivalent to
the yield foregone onexternal securities, The PUB recognizes that
the management of the sinkingfund requires careful and continuous
attention and assurances have beenreceived that the fund will
continue to be managed on a sound basis so asto insure that the
funds invested will be sufficient to meet the Board'sliabilities as
they fall due. Furthermore, the Board has appointed itsauditors to
examine and report on the operation of the sinking fund andtheir
first report, which was satisfactory, was received recently.
Assur-ances have been received that the examination will be carried
out annuallyin the future and that copies of the auditors' reports
will be submitted tothe Bank.
60. In the middle of 1965 the Board ceased to make cash
contributionsto the sinking fund because of its difficult cash
position. The requiredcontributions were charged to an investment
reserve which had accumulatedfrom an excess in the past of
contributions and interest thereon overaccrued liability. This
reserve is now almost exhausted and sinking fundcontributions have
been resumed.
61, Under the previous Bank loans the Board is required to
obtain theBank's approval before incurring any long-term debt if
net revenues fora twelve-month period out of the preceding
fifteen-month period are lessthan 1.5 times maximum future debt
service. Debt is defined as being deemedto be incurred on the date
of the contract providing for such debt.
62. Although the Board did not in fact submit to the Bank
estimatesof maximum future debt service in relation to past
earnings before incurringthe government loans received in 1965, it
seems that the test would havebeen met since net revenue before
depreciation in 1964 was 14$h6.4 million,allowing debt service of
M$30.9 million, against maximum service on debtincurred to the end
of 1965 of PI$25,5 million.
63. Under the proposed loan the present limitation on incurring
long--term debt is continued but debt has been redefined as being
incurredwhen it is drawn rather than when the contract is signed.
This changeshould enable t.Le Board to meet the test for the loans
assumed betweennow and 1970 and will be a more realistic
requirement for future debt
-
- 15 -
incurrence. The Board will have to submit suitable calculations
beforedrawing down any future debt to show its compliance with this
requiremento
64. In the past there has been no limitation on the incurrence
ofshort-term debt, In order to prevent imprudent use of overdraft
facilitiesor other short-term money and to insure that a sufficient
margin is avail-able for working capital, assurances have been
received that bank overdraftor other short-term finance will not be
used to finance capital expendituresexcept as an interim measure
pending receipt of long-term finance. Also,that the overdraft
together with any other short-term debt will not exceedM4$12
million without the Bank's prior approval. This amount is
estimatedto be sufficient to cover the Board's working capital
requirements for theforeseeable future.
65. The overall balance sheet at the end of 1965 shows a
deficitcash figure of M$607 million which represents the bank
overdraft. TheBoardts present total overdraft facilities are M$10
million.
Past Earnings
66. Income statements for the five years 1961 to 1965 for the
elec-tricity, water and gas departments are shown in Annexes 10, 11
and 12respectively, while Annex 13 gives significant financial
ratios. The Board'searnings have been referred to earlier under
"Tariffs" and the sharp reduc-tion in earnings in 1965 has been
noted. Until then the Board's earningswere good and the following
table summarizes the returns of each departmentand the Board as a
whole for 1962 to 1965e,
Electricity Water Gas Overall
1962 11.8% 9.0% 9.4% 10o.6%1963 12.1% 4.2% 8.9% 9.3%1964 11e3%
6,.5% 10.5% 9.6%1965 5.6% 3.5% 4.4% 4.9%
67. After allowing for the subsequent reduction in property tax,
itis estimated that the return for 1965 would have been about
5.5%.
68. Interest coverage was satisfactory until the end of 1964.
In1965 coverage fell from 2.5 times in 1964 to 1.2 times for the
Board as awhole and the gas department failed to cover its interest
charges. Debtservice coverage in 1965 fell from 2.6 times in 1964
to 1.7 times.
Financing of the Project
69. The expenditure to date on the Project and the estimated
cost tocompletion are shown in the statement of actual and
estimated sources andapplications of funds of the electricity
department for 1964 to 1970,Annex 14. Payments on the Project began
in 1964 and the first foreignexchange payment was made in October
1964. Almost all expenditures willhave to be met by the end of
1966. Hitherto the Project has been financedwith the assistance of
long-term loans from the Singapore Government ard
-
- 16 -
at the expense of working capital. The following summarizes the
sourcesand applications of funds for the electricity department for
the periodcovering the financing of the Project, 1964-1967:
(in millions of M$)SOURCES
Cash generation 14114Less: debt service 64.1Less: Sinking fund
contribution deferred 3.6 6o.5
Capital receipts 572Over provision for property tax
1.1Borrowings:
IBRD Loan 337-SI 41.5Proposed IBRD loan 30.0Government loans
58.9Future loans 15.0Suppliers credits 9.8
155.2
TOTAL SOURCES 242.4
APPLICATIONSConstruction expenditure:
Pasir Panjang 'B' Station 1st phase 54.0Pasir Panjang 'B'
Station 2nd phase 39.0Jurong Station 1st phase 18.9Distribution
117.5Other works 8.0
237.Increase in inventories 3.9Repayment of refundable deposits
5.3Less: receipts of refundable deposits 2.5 2.8
TOTAL APPLICATIONS 2h4.1
Decrease in cash (1,7)
70. It is assumed that the proposed Bank loan would be for a
periodof twenty years with repayments commencing in early 1968 and
that interestwould be at 6%. The Government loans are for twenty
years at 5-3/h%;they have no grace period and are repayable in
equal half-yearly install-ments.
Future Financing Requirements
71. Annex 15 gives the estimated sources and applications of
fundsfor the period of 1966 to 1970 for each department and the
Board as awhole. The following is a summary for the Board for the
period:
-
- 17 -
(in millions of M$) %
SOURCESCash generation 375-9Less: Debt service (net of sinking
fund
contributions deferred) 177.9Net cash generation 19T.0
43o6Capital receipts =.6 1.9Over provision for property tax ___7_
0.9Borrowings 243.4 53.6
TOTAL SOURCES 454.0 lOOo,O
APPLICATIONSConstruction expenditures 422,0Increase in
inventories 0.5Repayment of refundable deposits (net of
receipts) 8.3Decrease in payables less receivables 13.2Increase
in cash 100
TOTAL APPLICATIONS 454i0
72. The amount of borrowing required is shown to be 1N$243.4
million(US$81.1 million). This includes drawings against Loan
337-SI of M$10.5million (US$3.5 million) and Loan 405-MA of M$18.0
million (US$6.0 million)together with the proposed loan of M$30.0
million (US$10.0 million). Thesetotal M$58.5 million (US$19.5
million) leaving M$184.9 million (US$61.6 mil-lion) to be met by
the government or from external sources. The Board iscurrently
negotiating with prospective suppliers of the Jurong station,and
credits totaling M$23.5 million (US$7.8 million) have already
beensecured, mainly from Japanese manufacturers. The terms of the
creditsvary considerably from 15 years for the foreign exchange
component to 3 yearEfor the local component. Interest rates average
about 6%o It is likelythat further suppliers credits will be
obtained but it is assumed in theforecasts that the remaining
finance required of M$161.4 million (US$53.8million) will be
provided by the government and that the terms will be thesame as
for the existing government loans.
73. It is estimated that the Board would meet about 44% of its
re-quirements out of net cash generation which would be
satisfactory. If,as explained in paragraph 49, a portion of the
return in excess of 8%has to be paid to the government, cash
generation would be reduced by aboutM$8.6 million but the amount of
self-financing would remain at about 40%.
74. The forecast shows a cash increase of M$10.0 million over
theperiod and accumulated cash of M$3.3 million by the end of
1970.
Future Earnings
75. Estimated income statements for each department for 1966 to
1970are shown in Annexes 10 to 12. Annex 13 shows the rate of
return, interest
-
- 18 -
and debt service coverages and the debt equity ratio for each
departmentand overall. The assumptions made in preparing the
forecasts are givenin Annex 16.
76. The estimated returns for each department and overall are
suxmnar-ized below:
1966 1967 1968 1969 1970
Electricity 6.1% 8.4% 8.8% 8,6% 8.8%
Water 5.9% 8.6% 7.7% 7.2% 6.7%
Gas 6.9% 9.4% 10.8% 12.1% 13.3%
Overall 6.0% 8.5% 8.5% 8.4% 8.4%
77. Overall interest and debt service should be satisfactory
atabout 2 times annually for 1967 onwards.
Future Financial Position
78. The future financial position of the Board should be
satisfactoryand it is estimated that the overall debt/equity ratio
would be at a maxi-mum of 56/l14 falling to 149/51 by the end of
1970.
VIII. CONCLUSIONS
79. The Project is technically sound, the estimated cost is
reasonableand arrangements for construction are satisfactory. Work
on site commencedin October 196h and progress has been very
satisfactory. The first 60 NxINgenerating unit went into operation
in August 1966 and the second 60 NTll unitis scheduled to be in
service in October 1966.
80. The generating capacity which the project will provide is
necessaryto meet the expected demand for power. There is no
alternative method ofmeeting these requirements which would compare
favorably on an economicbasis.
81. Although the PUB's organization is unsatisfactory the
recentappointment of a competent General Manager who is well aware
of presentproblems, and the measures being taken to recruit
experienced staff, havestaff trained overseas, to reorganize the
accounting system, and the arrange-ments agreed between the Bank
and the Board regarding action on the 1Manage-ment Consultants'
report, should result in a progressive improvement in
thesituation,
82. Because of the imposition of high fuel and property taxes
theBoard failed to earn the required return of 8% in 1965. However,
the Govern-ment has agreed to measures which should ensure that,
while earningsfor 1966 will be be'ow the required level, the Board
should be able toachieve a minimum return of 8% for 1967 and
onwards.
-
- 19 -
83. As a result of these measures, the Board's financial
positionshould improve considerably. It should be able to meet a
satisfactory pro-portion of its capital requirements out of
earnings, provide adequate debtservice coverage, and maintain a
sound debt/equity ratio.
84. The Project would be suitable for a Bank loan of US$10.0
millionequivalent, for a period of 20 years including a grace
period of one yearon amortization payments.
October 3, 1966
-
PUBLIC 2rILITIES BOARD - SINGAPCRE
Electricity Department - Actual and Estimated Sales
1963-1970
'rSTALCo-mercial and Large Industrial ex.c1udnigLargeLightinge
Fame Domestic Power Industrial Power Public LiFhting Power TOTAL
Industrial tower3 % Of % ) of ' 9 of Sof % of S f-kwh increase
total kwh increase total kwh increase total kwh increase total kwh
increase total kwh increase kwh increaseTiiL
1961 120.5 15.6 18.9 197.8 11.1 31.1 306.3 7.7 48.1 12.0 9.1 1.9
- - 636.6 10.2 636.6 10.21962 133.2 10.5 19.3 212.2 7.3 30.8 331.2
8.1 48.0 12.9 7.5 1.9 - - _ 689.5 8.3 689.5 8.31963 148.1 11.2 20.3
234.5 10.5 32.1 333.6 0.7_ 45.7 13.7 6.2 1.9 - - 729.9 5.9 729.9
5.91964 161.5 9.0 19.5 268.0 14.3 32.4 359.8 7.8 43.5 15.2 10.9 1.8
23.5 - 2.8 828.0 13.4 806.5 10.21965 174.2 7.8 19.1 250.4 - 6.5 2/
27.4 462.7 23.0 48.5 17.8 17.1 2.0 27.3 16.1 3.0 912.4 10.2 885.1
10.0Average % Increase Per An 10.8 7.3 9.5 10.2 - 9.6 8.9
ESTIMATED
1966 186.0 6.8 17.6 265.2 5.9 25.1 500.7 13.1 47.4 19.6 lo.1 1.9
85.o 218.4 6.0 1056.5 15.8 971.5 9.81967 197.6 6.2 16.4 280.0 5.6
23.3 559.2 11.7 46.6 22.1 12.8 1.8 1142.7 67.9 11.9 1201.6 13.7
1058.9 9.01968 209.3 5.9 16.6 295.7 5.6 20.6 624.5 11.7 63.4 23.2
5.0 1.6 284.1 99.1 19.8 1636.8 19.6 1152.7 8.91969 221.6 5.9 13.2
312.2 5.6 18.7 692.2 10.8 41.4 24.7 6.5 1.5 420.9 68.1 25.2 1671.6
16.3 1250.7 8.51970 234.7 5.9 12.6 329.7 5.6 17.7 766.8 10.8 61.3
25.8 4.5 1.4 501.0 19.0 27.0 1858.0 11.2 1357.0 8.5Average S
Increaae Per annum 6.1 5.7 11.6 7.8 89.1 15.3 8.9
Bulk supply to Johore Ba\ru discontinued.
/ Transfer of consumere from Dbmestic Power to Com-ercal &
In nustrial Pwer.
June 1, 1966
-
PUBLIC UTILITIES BOAPD - SINGAPORE
Actual & Eatimated krh Generated & Sold, System Mxinmu.
De-andInstalled & Firn Generating Capacity
System Losses
including INSTALLED CAPACITY FIR, -Az TIYInh kbh used in Systen
Maxi- Pasir Pasir Eaclua-ng Incluaor.,:Generated ksh Sold Power
Stations rous Demand Pnj ang St. James Panjang Sp-nnjn
spRerervACTUAL (millions) (millions) ________ (4) -A- Free Piston
Gas Turbine "B" Jurong TOTAL Reserve Reserve1963 823 730 12 151.5
175 - 22 - - 197 172 _X964 914 826 12.5 168.6 175 27 22 - - 2214
188 -X965 1047 912 12.5 192.5 175 27 22 120 - 344 259 199
ESTIMATED
1966 1207 1056 12.5 240 175 27 22 240 - 464 379 3191967 1374
1202 12.5 287 175 27 22 2140 - b64 375 3191968 1642 1437 12.5 359
175 27 22 240 120 584 499 1391906 1911 1672 12.5 418 175 27 22 240
120 584 499 i391970 2123 1858 12.5 481 175 27 22 240 180 6b4 559
09
rnEl CAPACITTcluding Spinning Resrve
1963 Allows for 1 - 25 Ai unit Out of Corrnission for Statutory
Inspection and Ov-rhaul1961. Allows for 1 - 25 PW and 1 - 11X I as
TurbineVff onwards " 1 - 60 W and I - 25 m unit nlIcluding Spionieg
RBserve.
lffS omeards Allows for I - 60 14 unit out of conmission PLUS
s.inning reserve of largest olmt (60 MW) on system
June 1, 1966
-
ANNEX 3
SINGAPORE: PUBLIC UTILITIES BOARDELECTRICITY DEPARTMENTACTUAL
AND ESTIMATED INSTALLED AND FIRM GENERATINGCAPACITY(MEGAWATTS)
1,000
900
0z ~ ~ ~ ~ -0
0
800 o7 00 z X X a X < zz
U) ~~~~~~~~06700 o_ en _e en 2 I (D Z 584-
I-mzg3 NTLE - r55
z cr2 enz 3 0
700 a_ g z a- r AS 49
z ~~- -, _ ° t644
600 584c4l
< _L _ 2 5' _ _ # J(__2- In -0 | D ,z 5INSTALLED 559CAPACITY
z
< g 524
500 .U) U) r
a- AU 439
'~~~~~~~~~~~~~~~z~~~~IR - 3040
-J ~~~0 404
400 tD3790 2
300
c\j 224 ~~~~~YSTEM MAXIMUM
200
100~~~7
01963 1964 1965 1966 1967 1968 1969 1970WC'---ACTUAL
ESTIMATED
IBRD -3040
-
0 00 200 300 300 400 F..t
Ifirbil3 It I ST ) t 11 1FF \ ° \
MONSOON DRAIN THERMAL POWER.N STATIONS STOR
OI L
JUNE 066 IBRD-'03P HOUSE
2Nx | -L ~~~~~~~~~~~~~~SCREEN HOUSEt X
I~~~~~~~C Pump .s EXISTING "A! STATIONI
\~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 'ENCE
W , NX RET\S _ C . "U LVE RT S EUV R S _ T R D E t T F
qpg e acs W j < lil SITE PLLANMONSOCN DRAIN, -/ | 2B
ILRTHERMARB POWFIRSTATIANG
C -, / / L r G d o r H 1 | j l X C R J C S OEI O O
OUT FAOR IL \ + \ /E CA AT O ACN O M MOOATION
J U N E 19 66 IERD- 1032 R~~~~~~~~~~~~~~SI G A O R
-
SINGAPORE ANNEX 5
PUBLIC UTILITIES BOARD SECOND POWER PROJECT
Estimated Cost of the Project(in 11illions of ii$ and UilS`)
Foreign Local Total CostExchange Cost Expressed in:Cost M$ M$
US$
Civil WlorksGeneral Civil Works 0.50 1.69 2.19 0.73Structural
Steelwork 1.05 0.21 1.26 0.42Building Superstructure 0.50 1.53 2.03
0.67Chimney 0Ah0 0.13 0.53 0.18
2.45 3.56 6.01 2.00
Mechanical Engineering WorksBoiler Plant 8.64 2.33 10.97
3.65Turbo-Alternator Plant 11.39 0.99 12.38 4.13Pipework and Boiler
Feed Pumps 2.04 0.48 2.52 0.84Cooling Water Pumps and Screens 0.36
0.02 0.38 0.13Water Treatment Plant 0.18 0.05 0.23 0.08
22.61 3.87 26.48 8.83
Electrical. Engineering Works66 kv Switchgear 0.97 0.17 1.14
0.38Auxiliary Switchgear 0.50 0.03 0.53 0.18Transformers 0.89 0.08
0.97 0.32Cabling 057 0.38 0o95 0.32Lighting Installation - 0.13
0.13 0.04
2.93 0.79 3.72 1.24
Miscellaneous Works 0.20 0.10 0.30 0.10
Engineering 1/ 1.81 - 1.81 0O60
Site Supervision - 0.70 0.70 0.23
TOTAL 30.00 9.02 39.02 13.00
Totals expressed in Millions of US$ 10.00 3.00 13.00
1/ Engineering Cost = 4.8% of Total Cost
-
AIINEX 6SINGAPORE
PUBLIC UTILITIES BOARD SECOND POWER PROjfCT
Pasir Pan,jang ':B:' Thermal Station
Generating Costs in 1967
Total investment M$ 104.4h millionAnnual load factor 60%kwh
generated 1261 millionkw.7h used in station 56 millionkwh sent out
1205 millionAnnual average gross thermal efficiency 31%Heat value
of fuel 18500 BTU per lb.Unit cost of fuel 1'1$50.8 per long ton,
or
US 40.8 cents per million BTUAnnual fuel consumption 334,920
tons
Annual Costs
Fixed Costs
Interest at 6% on 1N,$101.59 million 1'3$ 6,095,000Depreciation
at 4% on 14$101.59 4,063,600
10,159,000
C%erating Costs
Fuel M$17, 039,360Repairs and maintenance 1,954,550Salaries and
wages 1,270,000
20,263,910
Total annual costs M$30,422,910
Cost per k7h generated M 2.41 cents or US 8.0 mills
Cost per kwvh sent out 1M 2.52 cents or US 8.4 mills
If the .M$15 per ton tax on fuel oil were removed the above
costs wouldbe reduced to:
Cost per kwh generated iq 2.01 cents or US 6.7 mills
Cost per kwh sent out M 2.11 cents or US 7c0 mills
-
SINGAPORSR
PUBLICt UTTLITtES BBARn
A9,3Aal and Estimated Balance Sheets - Electricity
DepartMent(expressed on ; Illions of M$)
--- ACTUAL ------------------- ---------- ESTIMAErD
--------------1961 1962 1963 196b 1965 1966 1967 1968 1969 197:
ASSETrSGross fixed assets in operation 239.52 2b1.29 272.08
(13.57 388.96 465.88 499.38 998.71 b35.11 698.6t,Less: accumulated
depreciation 72.83 83.35 87.G7 97.70 109.62 125.19 _ 12.99 162.31
1_5.Ijq 209.82
Net Fixed Assets in OperatiDn 166.69 157.94 _ 85.01 212.87
279.32 310.78 356.39 _t36t.0 652. 1 _ 8H.86
Work-in-progress 15.05 16.52 44.20 98.76 6.66 25.36 6.99 1.22 6
.r
Current assets:Cash 4.38 11.12 (4.34) (7.(o) (19.30) (?.30)
(1.99) (5.32) (L.11) (3.'36)
Inventories 7.69 8.40 9.39 11.40 15.29 12.79 13.29 13.79 1:.29
18.79
Defcrred charges 2.49 2.06 1.63 1.20 0.83 _ 0.5 0.25 .02 _ _
-
Total Current Assets 16.36 21.58 6.68 5.60 (2.18) 11.03 7.55 .b9
9.75 _ . ,
TOTAL ASSETS 181.05 196.57 208.21 262.67 295.88 358.67 389.28
_651.88 678.I8 5^6.31
LIABILITIESGeneral reserve 10.65 16.614 31.05 60.88 62. 6 6 9.26
61 28 76.62 96.79 115.,14Sinking fund reserve 46.96 53.86 62.37
69.17 76.68 78.25 85.99 93.11 102.14 11.-93
Capital contributions 8.93 9.73 1(.75 12.00 13.57 14.82 15.92
17.02 18.12 19.22
Total Equity 66.54 80.03 1064.17 122.05 130.29 1612.33 162.69
166.95 215.29 2h5.`9
Debt!Sinking fund loans 160.67 160.65 158.c6 158.06 158.06
158.06 158.06 153.06 158.D6 1:8. 6
Less: sinkicng fund investments 66.96 53.86 62.37 69.17 76.68
78.25 25-49 03.11 1)2.18 311.63
Net Sinking Fund Loans 113.71 106.79 95.69 8 93.38 79.81 72.57
60.95 .8 3;22TB1D Loan 337-SI 0.7 3 25.02 31.76 41.63 39.73 37.93
'z. 36.3Proposed IBRD Loan 28.17 30.00 29.,)8 28.10 27.27Guvernment
loans 19.81 b3.28 57.29 55.5b1 53.79 52.36 50.29Fiuture Government
and other loans 15.o 57.25 31.35 3,95.Suppliers credits _. 1.97
8.90 19.80 19.52 l6.5t
Total Debt 113.71 196.79 96.42 133.75 158.62 228.67 '21.7h
267.80 ^.93 25 -
Reflindable deposits ;J.80 7.75 7.62 6.e7 7.17 7.67 ,.85 -.13
2.16 , 2 .1
TOTAL LIABILITIES 191.05 19h.57 208.21 262.67 295.68 35F.47 3_
c*3 9.`e 6531
3,1tembcr 27, 1966
-
SINGOAPIRE
PUBLIC UTILITIES BOARD
Act.ol and Est ... ted Balanc Sheets 1961-1970 - All Seport
..ets(expres...d i0 mIllins of K85)
--------- ACTUAL - ------- -- .------- ElTIMATED -
----------------- ACTUAL ----- ----- - ------ ESTIMATEI) ---------
156 1962 196 1964. 1965 1966 1967 1968 1969 197 1961 1962 1963
1964. 1965 1966 1967 1968 1969 1970
ASSEITS LIABILITIESGross fixed a .s.t. is operation:
..iij'Feere:
Flectriclty 239.52 24.1.29 272.08 310.57 388.94. 465.88 1.99.38
598.71 635.81 698.68 Electricity 10.65 16.4.1 31.05 4.0.88 1.2.04.
19.26 61.28 76.82 94.79 115.24.Water 115.11 125.64. 126.28 11.5.77
154.63 164.71. 203.59 218.77 256.85 265.73 Woter 24,31 28.91 27.84.
29.16 28.71 33.68 39.51 44.69 1.9.60 54.82
Ga- 20.71 23.87 27.36 30.57 33.88 42.80. 45.59 4.8.85 53.39
56.59 Gao 0.56 0.52 0.89 1.48 0.97 1.15 2.21 5.02 6.72 10.22Sersi-
1.57 4.36 9.12 10.05 10.58 13.85 13.26 13.52 l.5.62 14..96 Se-ice
1.25 3.00 3.77 3.83 3.90 4.o08 5.09 5.16 5.20 5.21
Total 376.91 395.16 53.5 569 8.93 685.70 761.82 879.85 9067 _ 1~
.035.86 Total 36.67 58.87 63.55 75.35 75.62 88.17 107.09 129.69
155.32 285.19
Less acuslated depreolti-n SinkIrg fn.d rese-eEleotri.ity 72.83
83.35 87.07 97.70 109.62 125.10 14.2.99 162.31 185.1.0 209.82
Electriolty L.6.96 53.86 62.37 69.17 75.68 78.25 85.59 93.11 102.18
110.63Water 32.97 35.72 38.35 1.1.93 45.93 59.i0 53.64 59.33 65.20
71.70 Water 28.36 28.91 32.72 35.4.3 37.1.8 38.85 1.1.89 45.05
58.31. 51.79Gao 5.51 6.25 6.96 7.91. 7.93 9.15 10.66 12.37 15.19
16.13 lao 3.19 3.71. 4.55 5.15 5.66 6.20 6.87 7.53 8.17 8.86Service
1.02 2.18 3.98 5.17 4.36 4.80 5.38 5.9 663 75 Service 1.58 1.61
1.71 1.82 1.97 2.13 2.30 2.58
Total 112.33 127.49 136.35 151.75 166.81. 188.15 212.67 250.80
271.52 305.05 Total 78.51 86.51 101 .12 111.36 119.53 125.12 136.22
11.7.82 160.99 173.76
Net fixed .... ts A op-rtion Cxpit.l -otriboit cElectricity
166.69 157.95 185.21 212.87 279.32 350.78 356.39 536.4.0 450.41.
588.86 Electricity 8.93 9.73 10.75 12.00 13.57 05.82 15.92 17.02
18.12 19.22Water 82.15s 89.92 87.95 103.85 109.70 1-15.65 01.9.95
159.45 191.65 195.23 Water 5.78 5.21 5.50 6.57 7.09 7.63 7.95 8.15
8.35 8.55Gao 15.20 17.63 20.50 22.63 25.95 32.89 35.93 36.4.7 39.20
1.0.36 Gao 0.10 0.32 0.1.6 0.69 0.96 1.26 1.56 1.86 2.16
2.56Service 0.55 2.18 5.11. 5.86 6.12 8.25 7.88 7.53 7.99 7.56
Service 0.08 0.06 0.05 0.06 0.07 0.08 0.08 0.08 0.08 0.08
Total 265.58 267.67 298.59 345.22 521.09 4917.55 51.9.15 639.81.
689.25 730.81 Total 13.09 15.32 16.66 19.22 21.69 23.79 25.51 27.11
28.71 30.31
Work-Ac-progre.s Total eqoityElectricity 15.05 16.52 55.20 18.75
6.66 25.31. 6.99 18.02 6.o0 Electri-.ty 66.55 80).03 105.17 122.05
130.29 142.33 162.69 186.95 215.09 255.09Wate 9.05 2.77 13.67 8.28
10.83 30.08 22.33 31.91. 5.32 1.30 Water 57.55 63.03 65.96 71.06
73.28 80.16 89.35 97.89 106.29 115.16Gas 1.50 1.69 2.10 2.58 5.00
0.50 0.55 1.0 015 035 Gao 3.75 5.58 5.90 7.32 7.59 8.61 10.65 13.51
17.05 21.51.
Serice 1.33 3.06 5.30 5.50 5.68 5.97 6.11. 6.37 6.59 6.78Tota1
10.55 19.51 32.29 55.66 33.57 37.21. 57.90 1.0.13 22.79 7.61.
Total 129.07 150.70 181.33 205.93 216.85 237.07 268.82 325.62
31.5.01 388.57
Inventories: ~~~~~~~~~~~~~~~~~~~~~Debt:Ele-triolty 7.49 8.1.0
9.39 1-1.50 15.29 12.79 13.29 13.79 15.29 15.79 Electri.ity 160.67
160.65 158.79 202.92 233.10 286.92 307.23 355.91 363.11 369.66Water
5.25 6.13 6.06 6.38 5.36 5.36 5.56 5.76 5.96 6.16 Water 75.16 71.52
70.65 76.65 82.92 103.73 125.1.0 138.50 11.0.31 136.83Gas 1.38 1.82
2.70 2.57 2.95 2.95 3.05 3.25 3.15 3.15 lao 13.85 13.79 18.78 23.53
25.53 28.55 30.36 31.56 32.66 31.66service 0.06 0.12 0.12 0.11 0.13
0.73 0.75 0.21. 0.35 0.35 Seri-e 2.96 2.96 2.96 2.96 2.96 2.96 2.96
2.96
Total 15.28 16.57 18.27 20.1.6 23.72 21.22 22.03 22.71. 23.55
25.27.
Cash: Loo siolciog food ir-etwetsElectricity 5.38 11.12 (4.34)
M7OO) (18.30) (2.30) (5.99) 15.32) (5.55) (-3.35) Elect-olty 1.6.96
53.86 62.37 69.17 75.68 78.25 85.1. 93.11 102.18 110.63Water 6.02
7.55 (1.383 (2.17) (3.30) (2.01.) (1.631 (1.55) (1.15) (0.16 Water
28.36 28.91 32.72 35.4.3 37.58 38.85 1.1.89 45.0)5 58.31. 51.79Gas
(4.16) (7.21) (5.63) (2.50) (5.74) (5.56) (4.371 (3.27) (1.25) 0.5)
Gao 3,19 3.71. b5.5 5.15 5.66 6.20 6.87 7.53 8.17 8.86
ServIce ~~~~~ ~~~9.85 8.21 12.95 1.0.85 20.65 11.09 9.36 8.37
6.85 6.30 Serice 1.57 1.61 1.71 1.82 1.917 2.1S3 2.30 2.58Total
35.79 19.56 1.9 (.2 6.70) 1.29 (2.833 11.77) (0.08) 3.30
Defe,red charges: Bet debt:Electricity 2.59 2.06 1.63 1.20 0.83
0.55 0.25 0.02 Eleotroolty 113.71 106.79 96.52 133.75 158.52 208.67
221.75 262.90 260.93 259.03Water 1.55 1.31 1.10 0.90 0.71 0.56 0.55
0.31 0.21. 0.i6 Weter 1.5.80 52.51 37.93 51.22 1.5.45 65.88 82.51
93.55 91.97 85.04Ga 0.79 0.69 0.59 0.55 0.33 0.20 0.09 Gao 10.65
10.05 15.23 18.38 19.87 22.35 23.50 25.03 25.59 22.80
Ser-c 1.1. 1.35 1.25 1.15 0.99 0.83 0.66 0.58Total 5.72 5.06
3.32 2.55 1.87 1.30 0.78 0).33 0.21. 0.16
Total101 593 5.7 19.0 259 297.03 328.75 381.11 378.05
367.35Recivables 11.17 12.35 30 19 68 25.15 21.65 25.36 26.95
29.11.
Poyables, deposits: etc.Electriolty 0.80 7.75 7.62 6.87 7.17
7.57 5.5 2.13 2.16 7.19Winter 0.66 2.02 3.50 4.96 5.58 L5.6 4.56
5.56 2.78 1.30Gao 0.02 0.02 0.02 0.02Service 20.1. 19.79 25.1.1
31.93 1.6.6c0 36.60 31.70 33.20 35.69 35.89
Total 21.86 29.56 35.58 1.3.78 58.37 58.65 1.1.11 39.89 39.63
39.38
Total asse ts. Tota1lblio t1t -eElectricity 181.05 195.57 200.21
262.67 295.88 358.4.7 389.28 551.88 1.78.18 506.31 Eloctrlcity
181.05 195.57 208.21 262.67 295.88 358.1.7 389.28 551.98 578.18
506.31Water 103.90 107.57 107.39 1-17.23 123.30 159.60 176.1.3
195.90 201.03 201.1.9 Water 103.91 107.56 107.39 117.21. 123.30
159.60 176.53 195.90 201.03 201.1.9Gao 15.1.1 15.62 20.16 25.73
27.1.8 30.97 35.11. 37.55 1.1.51. 5.35 Gas 0.1.0 05.63 20.15 25.72
27.50 30.97 35.15 37.1.5 1.1.51. 7..35Service 21.73 22.85 312 87 35
3.71 36.83 1.0.50 1.1.91. 53.5 Servc 21.73 22.85 31.23 39.78 53.53
53.71 39.83 1.0.1. 1.i.95 53.15
TOTAL ASSETS 321.09 339.61 366.98 555.1.1 500.19 582.75 638.66
725.63 762.69 795.30 TOTAL LIAB2LITI7'S 321.09 339.61 366.98
44.1..11 500.19 587.75 638.68 725.63 762.69 795.30
ROlE, The figurs for the electricity depart.seot correpond to
those in Anne 7. D.tc for the seVer, gas endsevcd.pa-t-ets aere
tken f roe PUB5 forecasts a-d rounded to t he neret M1*0,000.
S.pteeb.r 27, 1966
-
SINGAPORE ANIVEX 9
PUBL[G UTrILITIES BOARD
Details of Debt and Sinking Fand(expressed in millions of
M$)
- - -- DEPARTMENT -------------- Total Singapore TotalLOANS
OUTSTANDING Electricit Water Gas Service PUB Governrmnt Loan
4.5% loan 1930/70-80 1.77 1.77 2.d6 4.633- " 1935/75-85 0.33
0.33 3,26 3.093.25% " 1948/66d73 12.66 14.56 1.41 0.12 28.75 1.25
30.003.75% ' 1951/51-711 16.43 8.50 0.07 25.00 25,00S4 s 1952/h2-72
15.97 4.56 1.00 1.47 23.00 2.00 25.004.75% 1953/63_73 21.70 7.00
1.30 30.00 30.004% 1954/65-77 22.46 6.00 28.46 1.54 30.004%
1955/70-8O 20.83 7.25 0.87 28.95 1.05 30.005% " 1956/66_76 28.78
16.00 4.50 49.28 0.72 50.005% 1953/b6d-7b 18.90 5.oo 6.oo 29.90
0.10 30.00
Total Loans for Which SinkingFund prw'ided 158.06 70.64 13.78
2.96 2)45.44 12.78 258.22
IBRD Loan 337-SI 31.76 31.76to to 408MA 2.43 2.143
Singapore Government loan 1963 2.31 9.25 11.56It it It 1964
16.97 5.85 22.82"v It It 1965 24.00 4.00 2.50 30.50
233.10 82.92 25.53 2.96 344.51
SINKING FUND
Accrued liability on sinkingfund loans 124.52
Sinking fund investments:Singapore Municipality Stocks
29.03External stocks 92.27
121.35
Loan to Government 4.202.67
Accrued interest 0,01Cash 0.08
Total Investments 128.31
DiFrerence between excess of total investnmntsover accrued
liability to date 3979
June 14, 1966
-
SINGAPORE
PUBLIC UTILITIES BOARD
Income Statement - Electricity Department(expressed in millions
of M$)
---------------------ACTUAL---------------------
-------------------ESTIMATED---------------------
1961 1962 1963 1964 1965 1966 1967 1968 1969 1970
Sales in millions of kwh 637 690 730 828 912 1,056 1,202 1,437
1,672 1,858
Average price in cents per kwh 7.41 7.29 7.36 7.23 T.09 6.90
7.11 6.78 6.57 6.43
Income from sales 47.19 50.29 53.74 59.84 6 4. 6 9 72.86 85.48
97.49 109.80 119.55Other income 2.91 3.o4 2.76 2.80 2.90 2.90 3.10
3.22 3.34 3.46
Total Income 50.10 53.33 56.50 62.64 67.59 75.76 88.58 100.71
113.14 123.01
Operating and maintenance expenses 11.32 11.81 13.27 15.20 17.36
21.20 22.76 24.50 26.73 29.96Fuel costs 11.61 10.01 10.51 11.39
13.97 13.56 13.85 16.93 19.17 21.20Tax on fuel o.69 4.o0
2.69Property tax 1.81 1.81 1.81 1.81 6.16 3.93 4.66 5.24 5.81
6.27Depreciation 9.94 10.58 10.11 11.11 12.22 15.48 17.89 19.32
23.09 24.42
Total Operating Costs 34.68 34.21 35.70 40.20 53.71 56.86 59.16
65.99 74.80 81.85
Net operating income 15.L2 19.12 20.80 22.44 13.88 18.90 29A42
34.72 38.34 41.16Interest 7.10 7.10 7.14 8.10 10.48 10.85 13.67
15.66 17.21 17.57
Net Income After Interest 8.32 12.02 13.66 14.34 3.40 8.05 15.75
19.06 21.13 23.59
Discount amortized o.46 0.43 0.43 0.42 0.37 0.29 0.29 0.23
0.02Sinking fund contributions 5.83 5.80 3.63 3.64 3.60 3.51 3.44
3.29 3.14 3.14
Total 6.29 6.23 4.06 4.o6 3.97 3.80 3.73 3.52 3.16 3.14
Net surplus (deficit) 2.03 5.79 9.60 10.28 (0.57) 4.25 12.02
15.54 17.97 20.45
September 27, 1966
-
SINGAPORE
PUBLIC UTILITIES BOARD
Income Statements - Water Department(expressed in millions of
M$)
----------------ACTUAL---------------------
-------------------ESTIMATED--------------------
1961 1962 1963 1964 1965 1966 1967 1968 1969 1970
Sales in millions of gallons 22,198 23,161 20,454 24,804 27,055
28,694 30.207 31 913 33 733 35.637Average price in cents per 1,000
gallons 83.84 85.32 84.58 85.76 81.57 85.42 101.53 1&,.75
106.44 104.08
Income from sales 18.61 19.76 17.30 21.27 22.07 24.51 30.67
33.43 35.23 37.09
Other income 0.75 0.80 1.02 0.65 0.99 0.53 0.53 0.45 0.46
0.47
Total Income 19.36 20.56 18.32 21.92 23.06 25.o4 31.20 33.88
35.69 37.56
Operating and maintenance expenses 9.44 9.66 11.12 11.86 13.12
114.21 15.22 16.22 17.13 18.11Property tax 0.50 0.50 0.50 0.50
2.18Depreciation 2.48 2.75 3.03 3.36 4.oo 4.15 4.53 5.68 5.85
6.48
Total Operating Costs 12.42 12.91 14.65 15.72 19.30 18.36 19.75
21.90 22.98 24.59
Net operating income 6.94 7.65 3.67 6.20 3.76 6.68 11.45 11.98
12.71 12.97
Interest due 3.14 3.09 3.01 3.09 3.56 4.16 5.33 6.76 6.73
6.68Less interest capitalized 0.09 0.45 0.89 1.10
Interest Charged to Operations 3.14 3.09 3.01 3.09 3.47 3.71 4.4
4 5.66 6.73 6.68
Net income after interest 3.80 4.56 0.66 3.11 0.29 2.97 7.01
6.32 5.98 6.29
Discount amortized 0.14 0.12 0.22 0.20 0.18 0.15 0.12 0.12 0.08
0.08Sinking fund contributions 2.75 2.68 1.09 1.10 1.10 1.08 1.06
1.02 0.99 0.99
Total 2.89 2.80 1.31 1.30 1.28 1.23 1.18 1.14 1.07 1.07
Net surplus (deficit) 0.91 1.76 (0.65) 1.81 (0.99) 1.74 5.83
5.18 4.91 5.22
September 27, 1966
-
SINGAPORE
PIJ8LIC UTILITTES BOARD
Income Statements - Gas Department(expressed in millions of
M$)
---------------------ACTUAL---------------------
-------------------ESTIMATED--------------------
1961 1962 1963 1964 1965 1966 1967 1968 1969 1970
Sales in millions of units 88.6 107.6 124.2 154.6 159.1 189.2
220.2 251.2 282.2 313.2Average price in cents per unit 4.15 3.99
3.85 3.76 3.73 3.74 3.99 3.99 3.99 3.99
Income from sales 3.68 4.30 4.78 5.82 5.93 7.08 8.79 10.03 11.27
12.51Other income 0.72 o.69 0.82 1.00 1.23 1.18 1.32 1.51 1.62
1.73
Total Income 4.40 4.99 5.60 6.82 7.16 8.26 10.11 11.54 12.89
1L.24
Operating and maintenance expenses 1.79 1.92 2.22 2.59 3.03 3.38
3.70 4.01 4.32 4.64Fuel costs 0.74 o.69 0.80 0.89 o.86 1.08 1.13
1.28 1. 4h 1.60Tax on fuel 0.o5 0.29 0.19Property tax 0.03 0.03
0.03 0.03 0.80 0.43 0.53 0.60 o.66 0.72Depreciation 0.76 0.84 0.87
0.99 1.10 1.22 1.51 1.71 1.83 1.94
Total Operating Costs 3.32 3.48 3.92 L.55 6.08 6.30 6.87 7.60
8.25 8.90
Net operating income 1.08 1.51 1.68 2.27 1.08 1.96 3.24 3.94
4.64 5.34Interest 0.76 0.84 0.89 1.18 1.27 1.57 1.71 1.73 1.68
1.56
Met Income After Interest 0.32 0.67 0.79 1.09 (0.19) 0.39 1.53
2.21 2.96 3.78
Discount amortized o.o8 0.11 0.10 0.12 0.13 0.13 0.12
0.09Sinking fund contribution 0.53 0.53 0.37 0.37 0.37 0.36 0.35
0.31 0.26 0.27
Total 0.61 o.64 0.47 o.49 0.50 o.49 o.47 o.40 0.26 0.27
Net surplus (deficit) (0.29) 0.03 0.32 o.60 (0.69) (0.10) 1.06
1.81 2.70 3.51
September 27, 1966
-
SINGAPORE
PU8LiC UTILITiF.S BORL
Financial Ratios
i962 1963 1961 S 1965 1966 1967 1968 1969 1970
Return on A.erage Set Fixed Assets in OperationAverage net fixed
assets in operation:
(to nearest million M$)El.ectriolty 162 171 199 246 310 318 396
8i3 i69Water 86 89 96 137 113 133 155 176 193Oas 16 19 22 25 29 3b
36 38 80
Total (icluding ser-iCe depurtment noo vh-os above) 266 283 322
383 159 523 S9b 661 710
Net operating 1nosne:Electriocty 19.1 20.8 22.1 13.9 18.9 29.1
31 .7 18.3 11.2Water 7.7 3.7 6.2 3.8 6.7 11.5 12.0 12.7 13.0Gas 1.5
1.7 2.3 1.1 2.0 3.2 3.9 1.6 5.3Service depar,tent 0.1 0.1 0.1 0.1
0.1 0.1 3.1
Total 28.3 26.3 31.0 18.8 27.7 11.2 50.7 55.7 59.6
Return:Electrioity 31.8% 12.1t 11.3% 5.6% 6.1% 8.1i 8.8% '.5S
8.6%Water 9.0% i.2% 6.5% 3.5% 5.9% 8.6S 7.7% 7.2% 6.7%Gas 9.1% 8.9%
10.5% 1.1% 6.9% 9.b% 10.8% 12.1% 13.38
Total 10.6% 9.3% 9.6% 1.98 6.08 8.5% 8.5% 4.8 8.1,S
Calcslation of Additional Tax Payable (Ce poragreph 49)Ret
operatiag incoe ren return of hb.8 87.5 53.1 56.8Forecast of
operating inco.ie (.a above) 11.2 50.7 55.7 59.6
rce.se return payable to OoGern.tenl subject to linitation boi1e
2.1 3.2 2.6 2.9
Gross reeen.es for yeer 129.9 1L6.1 161.7 171.0
5.36S thereof 7.0 7.8 8.7 9.1lees paid at 8% 5.2 5.8 6.8 _
Additional ta- payable be-ng leos than excess return 1.8 2.0 2.3
2.5
Intereset ovragei7 mtrflty 2.7 2.9 2.8 1.3 1.7 2.2 2.2 2.2
2.3Water 2.5 1.2 2.0 1.1 1. 6 2.1 1.8 1.9 1.9Gao 1.8 1.9 1.9 0.9
1.2 1.9 2.3 2.8 3.1
Total 2.6 2.1 2.5 1.2 1.6 2.1 2.1 2.1 2.2
i)ebt s-iervccrgil.ctricity 2.3 2.9 2.8 1.8 2.1 2.2 2.1 2.1
2.1Water 1.8 1.6 2.3 1.6 2.1 2.5 2.1 1.7 1.7Gas 1.7 2.0 1.8 1.0 1.3
1.7 2.F e.3 2.
Total 2.1 2.5 2.6 1.7 2.1 2.2 2.1 2.0 2.0
Debt/eruity ratio~etr1ct56/U, 18/52 52/18 55/15 60/10 58/A2
58/12 15/A5 51/19Watectricity 10zo/66 b378/63 637/63 38/62 65/55
b8/52 h9/5i 1/51h 12/58las 69/31 71/29 72/28 72/28 72/28 69/31
68/'36 6/7l 51/1,9
Total 51/19 h5/55 19/51 51/89 56/11 8 cS/I5 05/1, '2/l8 '
N/51
i,' 3cre alliong ln 1965 fcr redt -ln in proocrty tlx
-rtcn-cr 27. ' c
-
aO0NAFORE
01U11LI. UTILITOI:I BOARD
Surc- and knplc-t-un of Funds - Electr-city Depar-ten
--- ACITUAL ---- ------------- E2TIIOATED ------- - ----- -----
TOrAL------1961. 1965 1966 1967 1968 1969 1970) 1964./1967
1966/1970
SOURCESNet operatng ... cc 22 .1.1. 13.81 18.90 29.1.2 34..72
38.31. 1..16 81..61. i62.51.Add deprec-ation 11.11 12.22 15.18
17.89 19.32 23.09 2h.1.2 56.70 100.20
Cash Generation 33.55 26.10 31..38 1.7.31 5L..o1 61.4.3 65.58
I.1..34. 262.71.
Refundable cos-nr deposits 0.28 o.63 0.80 0.80 0.80 O.980 0.8
2.51 1..00
Capital re...uPt. 1.26 1.57 1.25 1.10 1.10 -1.10 1.1.0 5.18
5.65
Sinkdng fund contributions deferred 1.71. 1.81. 3.58 1.81.
Over-provis... for property tax __________1.1.3 1.13 1.13
Borrosings:IBlD Loan 337-SD 21..29 6.73 10.1.8 1.i.5o
10.1.8Proposed IBRO loan 28.17 1.83 30).00 30.90G-.e,osnt loans
19.90 24..00 15.90 58.90 15.00Future Goe-eret and other loans
1.5.00 4.3.00 16.00 17.00 1.5.00 91.00Su~ppliers credit. _________
1.97 7.85 12.21 0.98 0.15 9.82 23.1.6
Tot.1. Brorning. 441.19 30.73 55.62 21..68 55.21 16.98 17.15
155.22 i69.91.
TOTAL SDURCES 79.28 60.77 95.012 73.89 11,1.15 80.31 81.93
308.96 4.15.30
APPLICATIONS
Constrution espenditore:Psair Pnjang 'B Station - let Phase
33.98 9.61. 9.65 0.75 54..02 10..0
- 2nd Phase 0.91. 11.22 24..96 1.90 39.02 76.06Proposed J.rong
Station - lot Phase 0.19 0.4.9 18.18 51.73 9.4o0 0.96 18.86
90.76
- 2nd Phase 11.93 19.52 31.05
Di.trlb.tios 30.31. 30.36 27.1.2 29.68 26.16 25.09 29.05 117.50
137.10Other wrks 1.85 1.8). 2.61 1.67 3.09 2.11 1.32 7.97 l0.83
Tot.1] Cons trution 67.11 53.22 61..86 52.18 80.98 1.8.13 50.85
237.37 297.00
Anortization. IBRI Loan 337-SD 0.81 1.70 1.80 1.89 2.01 2.51
8.21Proposed I089.0 oa 0.92 0.98 1.03 2.93Gceern,set loans 0.06
0.56 0.99 1.75 1.75 1.75 1.75 3.36 7.99
oture loans 0.75 2.90 3.70 7.35Sinking funds 3.61. 3.60 3.51
3.1.1 3.29 3.11. 3.11. 1b.19 16.59Suppliers Credits __________0.92
1.31 2.26 2.11 0.92 6.90
Tota]. A.ortizatioo 3.70 4.16 9.31 7.81 9.82 1.2.92 111.01.
20.98 19.90
Int.eret: DBRD Loan 337-S2 0.13 1.1.2 1.92 2.38 2.28 2.19 2.07
6.15 10.91.Propose.d 1BRD9.0oa 0.1.2 1.21. 1.79 1.73 1.67 2.16
7.35Ooers-et loans 0.57 1.96 1.38 1.73 1.63 1.53 1.1.3 5.61.
7.70Future 1oans 0.1.3 2.02 3.63 1,.37 0.1.3 10.10Sinking fond debt
7.10 7.10 2.10 7.10 7.10 7.10 7.10 28.1.0 35.50Suppliers crdits
__________ 0.03 0.29 0.79 1.03 0.93 0.32 3.07
Total Ioteret 98.10 10.1. 10.85 13.67 159.66 17.21 17.57 13.1.7
74.Q(0
Total Debt le--c 11.00 31.61, i6.16 21.19 29.18 30.13 11.61
61.38 321,.06
Incre.ase- netre 2.00 3.89 (2.51)) 0.50 0. 50 0.50 j0 3.P.5
O.
Repayment of refundble deposits 1.03 0.32 C50- 3.1.2 3.52 1.7 77
5.27
TO07-1 AYPLTl0 ri.7Ns 002 7.7 3.17772.09 1 1).01 4 l 9.53 "'.73
3V.1 .,3 .71.I
lass -upl-n (oct. :s.06 II1.3? .} .3,69) ',17 3:.00 1., -
si5sr27, .66
-
ANNFX 15
SINGAPORE
PUBLIEC UTILITIES BOARD
Esti..ted So-ce. and Applicati-n of Ponds - 6Ai1
Depart-ets(e.pre...ed in mIlliona of 19$)
1966 1967 1968 1969 1970 1966-1970
SOURCESCash gen..rAted from operation....81.15.0.6.. 55
El..t,i.ity 34.36 0-31 5h.(h 61.43 65-58
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~262.74.Water 10.81. 16.00 17.67 18.57
i9.16 82.51.Ga. 3.18 1.75 5.64. 6.4.6 7.27 27.30Service 0.59 0.6
0.68 0.68 0.77 3.32
Total Cash Genration 18.99 68.66 78.03 87.18. 93.08 375.90
Refundable coe.oura- deposits:Electricity 0.80 0.80 0.80 0.80
0.80 1.00
Capital roneipte.ESeotricity 1.25 1.10 1.10 1.10 1.10 5.65Water
0.55 0.32 0.20 0.20 0.20 .1.473..a 0.30 0.30 0.30 0.30 0.30
1.50
Total Capital Reesipt. 2.10 1.72 i.60 1.60 1.60 0.62
Sinking fond ... tr-b.tlns deferred.Electricity 1.81. 1.81.Water
0.55 0.55Gu 0.19 0.19Service 0.03 0 .U3
Total 2.61 2.61
Oeer-prcvti.n for Property TaoOlectri-ty 1.13 1.13Water 2.68
2.68Gas 0.09 0.09
Total 3.90 3.910
B-rrcinge:ElectrAcity 55.62 21.68 55.21 16.98 17.8.5
169.91.Water (including IBRD Loan 1.08-M-A) 21.10 21.62 15.75 5.00
63.17Gas 3.50 2.50 2.00 2.00 10.00
Total Ourr...ligs 80.22 1.8.80 72.96 23.98 17.15 21.3.L1
Total ...orceuElectricity 95.02 73.89 111.15 80.31 81.93
I.15.30Water 35.72 3'.94 33.62 23.77 19.66 150.7)Gas 7.26 7.55
7.91. 8.76 7.57 39.08Sevice 0.62 0.60 0.6 0.68 0.77 3.35
TOTAIl SOURCES 238.62 119.98 153.39 113.52 112.93 638.1.4
APPLICATIONSConstruc.ti ec-penditure-
Electricity 64.86 52.18 80.98 1.8.13 50.85 297.00Water 29.35
30.88 25.01 10.1.6 5.85 121.55Gas 4.65 3.50) 1.00 3.80 3.00
18.95
Service ~~~~~~~~~~~~~~~2.56 0.22 0.26 1.10 0.31. 1.48S.i- Total
Construction Erpendit-r 101.4.2 66.78 110.25 63.1.9 60.04
1.21.98
Debt uceoice,Electricity 16.16 21.1.8 25.4.8 30.13 31.61
124.86Watar 5.59 6.45 8.33 10.92 11.15 4.1.93G as 2.1.3 2.71 2.81.
2.81. 2.8.3 13.68
Total Debt Seroine 23.68 30.67 36.65 4.3.89 1.5.59 180.4.7
Iorasi loncleElectrict (2.50) 0.50 0.50 0.50 0.50 (0.50)
Water 0.20 0.00 0.20 0.20 0.80G.. 0.10 0.10 0.20
Total I--ece in . etre (2.50) 0.80 C.70 0.80 -0.70 0.50
Repayveent of refurduble deposits:Electricity 0.50 3.12 1-.52
0.77 0.77 8.98Water 0.02 1.78 1.19 3.29Gas 0.02 0.02
Total Repaynen ts 0.52 3.11 3.52 2.55 2.26 12.29
Total applications.Electri.ity 79.02 77.58 110.1.8 79.53 83.73
130.31.Water 34.4.6 37.53 33.54. 23.36 18.68 11~7.57Ga 7.08 6.36
6.81. 6.71 5.83 32.85ISr,lue 2.56 0.22 0.26 1.10 0.31. 1.48
T'OTAL APPLICATIONS 123.12 121.69 151.12 110.73 108.58
615.21
Cash -,rplus (deficit):Eleetricity 16.00 (3.69) 0.67 0.78 1.20
11.96Water 1.26 o.1:a 0.08 0.11 0.98 3.11.Ge 0.18 1.19 1.10 2.02
1.75 6.21.Service (1.94.) 0.38 0.02 (0.42) 0.1.3 (1.13)I-cease or
(decrease) in payable.less re-l-eble. (7.90) (2.1.1) (1.21) (1.10)
(0.98) (13.20)
Net tncreaze (dscrea...) in service cash (9.145) (2.03) (10.79)
(1.52) (0.55) (1131)
TOTAL CASH SURPLUJS (DEFICIT) 7.99 (1.12) 1.06 1.69 3.38
10.00
Cash at begi-niog of year (6.70) 1.39 (2.83) (1.77) (0.08)
Cash at end of year 1.29 (2.83) (1.77) (0).08) 3.30
NOTE: The figures for ths electricity department corespond to
those in Anne 11. Data for the .nter, gas and -irvbc
deperte...ts.ere te1kn fran PUBls forecasts and r-oded to the
nearest 410,000.
September 27, 1966
-
ANNEX 16
SINGAPORE
PUBLIC UTILITIES BOARD SECOND POWER PROJECT
Assumptions for Financial Forecasts
ELECTRICITY DEPARTMENT
1. Tariffs
The forecast is based on revised tariffs effective November 1,
1966 viz:
(a) Lighting and Fans - average of 15.2 M cents per kwh(b)
Domestic Powrer - average of 7.0 M cents per kwh(c) Commercial and
Industrial - average of 4,9 M cents per kwh(d) Public Lighting -
average of 7.50 M cents per kwh
2. Operating Costs
(a) Administration - at M$ 1.60 million for 1966 and 7,'O
increaseper annum
(b) Generation - at M$ 7.95 million for 1966 plus M$ 550,000
for1967 and 1968, M$ 1 million for 1969 and M$ 2 mil-lion for
1970
(c) Distribution - at M$ 5.97 million for 1966 plus M$
600,000per annum
(d) Commercial and Hiring - at 1$ 1X86 million for 1966 plusM$
150,000 per annum
(e) Service Department cost allocated - based on proportion
oftariff income
(f) Property Tax - at 4% of total gross revenues of previous
yearallocated between electricity and gas in pro-portion to
revenues
(g) Depreciation - straight-line method
3. Debt Service
(a) Proposed loan - 20-year loan at 6% interest with
repaymentcommencing in 1968
(b) Government and other future loans - 20 years at 5.75%
interest,repayment commencingimmediately
WATER DEPARTENT
1. Tariffs
The forecast is based on revised tariffs effective Nlovember 1,
1966 viz:
(a) Domestic - 80 1I cents per 1,000 gallons(b) Shipping - T4$
4.00 per 1,000 gallons(c) Government - M4$ loO0 per 1,000
gallons
-
ANNEX 16Page 2
(d) Foreign Armed Services and statutory bodies - M$ 1.50
per1,000 gallons
(e) Industry (water processed for sale) - Vi$ 2.50 per 1,000
gallons(f) Other industry - 1,1$ 1,50 per 1,000 gallons
2. Operating costs
(a) Administration - at M$2,05 million for 1966 and 5% increase
perannum
(b) Collection and Storage - at M$300,COO for 1966 and 5%
increaseper annum
(c) Treatment - at 9M5 M cents per 1,000 gallons sold for
1965plus 0.2 M cents per 1,000 gallons sold per annum
(d) Pumping - at 12.8 M cents per 1,000 gallons sold for 1965
plus0.5 14 cents per 1,000 gallons sold per annum
(e) Supply mains - M$260,000 for 1966 plus M$10,000 per annum(f)
Service reservoirs - M$180,000 for 1966 plus M$10,000 per annum(g)
Distribution - MI$1.9 million for 1966 plus M$100,000 per annum(h)
Waste detection - M$170,000 for 1966 plus V$l0,000 per annum(i)
Metering - M$700,000 for 1966 plus M$20,C00 per annum(j) Special
water levy - Deduct 6,500 MG at 3 M cents per 1,000
gallons for 1966 to mid-1969 and 16,250 FAGat 3 M cents per
1,000 gallons from mid-1969 to 1970
(k) Service department cost allocated - based on proportion
oftariff income
(1) Depreciation - straight-line method
3. Debt Service
Government Loan - as for Electricity.
GAS DEPARTMENT
1 Tariffs
The forecast is based on revised tariffs effective November 1,
1966 viz:
All consumers - h M cents per unit
2. Operating Costs
(a) Acdinistration - at M$210,000 for 1966 plus M$10,000 per
annum(b) Manufacture:
Oil - present pricesWater - at M$50,000 for 1966 plus M$10,000
per annumOther - at M$1.35 million for 1966 plus M$150,000 per
annum
(c) Distribution - at M$700,000 for 1966 plus 1-1$50,000 per
annum(d) Hire of appliances - at M$650,000 for 1966 plus M$50,000
per
annum
-
ANNEX 16Page 3
(e) Service Department cost allocated - based on proportion
oftariff income
(f) Property tax - at 4% of total gross revenues of previousyear
allocated between electricity and gas inproportion to revenues
(g) Depreciation - straight-line method
Debt Service
Government loan as for Electricity.
-
M A L j A. Z _ Y A
P 7 / J O*/OJoh_._ t
J~~~~urong Pnr 2 _/\ /1\_/7
p_ L, C H I N A >"'- / _/
-BURMA ~~~~~~~~~~~~~SINGAPOREB',o0 v,-! c- SINGAPORE ISLAND
,g \TF -1 j P~~~~~~osir Ponjong . -E L P~~~~~~~~~~~~~ower
Station
a Ande/non9jC dJ ^ Sites A and B ) w PRINCIPAL ROADS
I Andomo,, 4 R~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~PAILWAY
INTERNATIONAL BOUNDARY
ALAYA
0 2 2 4 5 M,Ies
INO14N OCEAN 0 O4 4
JUNE 1966 IBRD-1031 R