National water agency PUB gives Hyflux's Tuaspring more time to remedy defaults

PUB will exercise its right to terminate the purchase agreement and take over the Tuaspring desalination plant if Hyflux fails to remedy defaults by the new deadline of April 30, 2019.
PUB will exercise its right to terminate the purchase agreement and take over the Tuaspring desalination plant if Hyflux fails to remedy defaults by the new deadline of April 30, 2019.PHOTO: LIANHE ZAOBAO

SINGAPORE - The national water agency PUB has given Hyflux's integrated water and power plant Tuaspring more time to remedy defaults arising under their water purchase agreement.

The deadline has been extended from April 5 to April 30, PUB said on Friday (March 29).

PUB will exercise its right to terminate the purchase agreement and take over the Tuaspring desalination plant if Hyflux fails to remedy defaults by the new deadline, it added.

Tuaspring had asked to have the deadline extended because it is "currently loss-making and will require support" from its parent company Hyflux, PUB said.

But Hyflux's "ability to provide financial support to Tuaspring will depend on whether it is able to complete its restructure and to obtain the investment from SM Investments", it added.