Hyflux is looking for loans of up to $650m to fund the construction of the Tuaspring desalination plant and a 400MW gas-fired power plant in Singapore.

The 318,500 cubic metres per day desalination plant will be located in Tuas and is expected to begin commercial operations in 2013.

Hyflux subsidiary Tuaspring also signed a 25-year water purchase agreement with national water agency PUB.

As the concession company, Tuaspring will deliver desalinated water to PUB from 2013 to 2038.