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

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.

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

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

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.

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

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

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).

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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.

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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