PUB should buy Tuaspring at reasonable value

PUB said it would be willing to take over Tuaspring plant for zero dollars as its current valuation is negative.
PUB said it would be willing to take over Tuaspring plant for zero dollars as its current valuation is negative. PHOTO: HYFLUX

In announcing its plans to take over the Tuaspring desalination plant, national water agency PUB said it would be willing to take over the plant for zero dollars as its current valuation is negative (PUB to take over Tuaspring for zero dollars if defaults not fixed, March 22).

As a regulator, a customer and a potential buyer of the desalination plant, PUB has various different considerations, some of which may be conflicting. I hope that PUB weighs these considerations cautiously.

Beyond these, PUB should also purchase the plant at market valuation, or at a reasonable price using different valuation methods.

Investors need to have confidence that their investments in Singapore will be treated fairly when there is a default.

This is important for future infrastructure projects which require huge investments and engineering capabilities of best-in-class firms to cater to our country's needs.

Chiam Sheng Shi

A version of this article appeared in the print edition of The Straits Times on March 26, 2019, with the headline 'PUB should buy Tuaspring at reasonable value'. Print Edition | Subscribe