CPG Consultants, in partnership with KPMB & Colliers, was engaged by PUB, Singapore's national water agency, to conduct a privatisation study of Kranji NEWater Factory, following the successful implementation of the Tuas Desalination Plant and Ulu Pandan NEWater Plant projects, both of which used a Design, Build, Own and Operate (DBOO) arrangement. Thereafter, PUB looked into the feasibility of divesting another NEWater factory with the possible inclusion of leasing part of or divesting whole of the water reclamation plant.

The objective of the Kranji NEWater Factory divestment exercise was to verify whether higher efficiency and lower cost in NEWater delivery can be achieved by the private sector, taking into consideration the strategic, legal, commercial and technical impacts.

To achieve this objective, the divestment study looked into feasibility issues and recommended the most suitable divestment model for the Kranji NEWater Factory. The study also looked into the possible inclusion of leasing part of or divesting the whole of the upstream Kranji Water Reclamation Plant with the Kranji NEWater Factory.