Hyflux Tuaspring plant to be delivered to PUB on May 17, Enclosed Water Purchase Agreement



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Photo: YT screengrab

Singapore's national water agency PUB issued a statement on April 17 (Wednesday) that is set to take over the Hyflux Tuaspring Desalination Plant (TSDP) and the Water Acquisition Agreement (WPA) will be terminated .

The press release noted that the course of action was made "to safeguard Singapore's water safety" and that "notice of termination provides for a notice period of 30 days before the PUB assumes the TSDP."

On March 21, PUB announced its plans to take over the desalination plan if it could not resolve its default by April 5.

PUB and Tuaspring Pte Ltd signed a 25-year Water Acquisition Agreement on 6 April 2011, with Tuaspring obliged to supply up to 70 million gallons of desalinated water per day to PUB by 2038, a desalination plant could not comply. numerous occasions.

Read related: The PUB gives the deadline for Hyflux to resolve the defaults, or it will assume Tuaspring

According CNA, PUB will not undertake a complete restructuring of the administration and will maintain existing staff who have the relevant skills and knowledge to operate the TDSP.

"Let's work out the implementation details and schedule … to facilitate a smooth transition," PUB said.

It is PUB's focus to implement the "necessary measures and modernize the works to ensure that the Tuaspring Desalination Plant is capable of producing reliably desalinated water."

"The extent of modernization measures and works will be determined after PUB conducts a more in-depth engineering assessment," PUB added.

In response to the notice of termination, Hyflux said on April 17: "The termination of the water purchase agreement should have a significant impact on the group's financial performance."

"The company will make the appropriate announcements, as and when there are more material developments on this subject," added Hyflux, who is currently overwhelmed by baffling debts, among other issues.

Read related: Singapore petition President Halimah to appoint a commission of inquiry to investigate Hyflux

Read related: Hyflux investors may end up losing 90% of their capital in the next restructuring

While the initial deadline was set for April 5, Tuaspring requested an extension of the standard notice period to April 30, with which PUB agreed under certain undisclosed conditions.

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