Deals
Singapore May Pay $0 For Water Plant That Cost Investors Millions
- State water agency willing to waive compensation for breaches
- Hyflux says talking to investors on restructuring status
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Singapore’s government may pay nothing to take over a water desalination plant from cash-strapped Hyflux Ltd. while waiving a compensation fee, complicating the outlook for the firm’s restructuring plan.
The Tuaspring project consists of a water-treatment plant and a combined-cycle power plant that were built by Hyflux at a cost of S$1.1 billion ($815.4m) after winning a 25-year concession in 2011. The plant was billed as one of the four “national taps” to bolster the state’s water security. The Public Utilities Board served a notice of default on Tuaspring on March 5, citing operational and financial lapses.