The Government of Singapore has unveiled plans to finance Phase 2 of the SGD10 billion Deep Tunnel Sewerage System (DTSS) project through borrowings. The proposed Significant Infrastructure Government Loan Act (Singa) will support these borrowings once passed. The project is scheduled to start commercial operations by 2025.

DTSS is a system of deep tunnel drains that use gravity to transport used water to three centrally controlled treatment plants, where it is purified to create Newater. The project aims to free up land space by shifting treatment facilities underground for used water. The project is being built in two stages. The SGD3.4-billion Phase I included construction of more than 100 km of tunnels and link sewers serving the northern and eastern parts of the country. It was completed in 2008.

Work under Phase II began in 2017. It entails the redirection of used water from Singapore’s downtown and western areas to the new Tuas Water Reclamation Plant. As of April 2021, about 24 km of 100-km conveyance system had been installed under Phase II. This  phase is expected to cost SGD6.5 billion. Once completed, it will replace the traditional water plants in Jurong and Ulu Pandan and the freed land will be used as immediate pumping stations.