By Jessica Cheam

THE grand vision of transforming Punggol into Singapore's first waterfront public housing town begins in earnest next month when construction gets under way.

A $144.6 million contract for the first part of the Punggol Waterway has been awarded to Koh Brothers Building and Civil Engineering Contractor, said the Housing Board (HDB) yesterday.

The 2.4 km stretch - the entire waterway will be 4.2 km long - is expected to be completed late next year, the HDB said.

Punggol Waterway is part of the 'Punggol 21-plus' masterplan unveiled by Prime Minister Lee Hsien Loong in his National Day Rally speech in 2007.

The new town will boast features like a freshwater lake and a waterway running through the estate, with homes and a town centre on the banks.

The coastal suburb will also have facilities for water sports, gardens and parks with jogging tracks, and eateries for al-fresco dining, Mr Lee had said.

The Punggol Waterway, which will be connected to Sungei Punggol, will have an average depth of 4m, with its width varying from 10 to 85m.

HDB said yesterday its plans to launch the first sale site at Punggol's Town Centre for a mixed commercial and private residential development 'are also on track'.

The board launched more than 4,000 flats in Punggol last year. By end-2011, there will be about 23,000 completed flats in the area.

In the longer term, a further 21,000 public and private homes will be built 'along the waterway for residents to enjoy waterfront housing', said the HDB.

This article was first published in The Straits Times on January 29, 2009.