Singapore’s water and power company, Hyflux, has been under fire recently when they were found to have incurred a hefty debt of S$3 billion and regulators are now investigating their accounting practices, according to TODAY.
It was reported that national water agency PUB will take over Tuaspring, Hyflux’s integrated desalination and power plant in Singapore, if the firm is unable to “repay its defaults” by 30 April.
According to TODAY, PUB on Wednesday (17 Apr) gave a termination notice to Tuaspring, ending their water purchase agreement.
After a 30-day notice period, PUB will take over the Tuaspring Desalination Plant (TSDP).
PUB stated that it is willing to waive its entitled compensation sum under the agreement and buy over the desalination plant at “zero dollars”.
Tuaspring had signed a water agreement with PUB in 2011 to deliver up to 70 million gallons of desalinated water a day to PUB for 25 years from 2013 to 2038.
The agency said that Tuaspring had “failed to keep the plant reliably operational as required”.
The Straits Times (ST) added that the plant is unable prove that it can financially support its operations in the next six months.
About $900 million are owed to about 34,000 Hyflux shareholders and investors as the company ceased trading on the Singapore Exchange (SGX).
Featured Image Credit: Hyflux