Hyflux's Tuaspring Plant to be turned over on May 17, Water Purchase Agreement terminated

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

The press release noted that the action has been done to "keep it safe" and that "the termination notice provides a 30-day notice period before PUB takes over the TSDP."

On March 21, the PUB announced its plans to take over the plan.

PUB and Tuaspring Pte Ltd Signed a 25-Year Water Purchase Agreement on April 6, 2011, with Tuaspring being obligated to deliver up to 70 million gallons of desalinated water per day to PUB until 2038, a responsibility the desalination plant was not able to uphold numerous occasions.

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According to NAC PUB will be responsible for the management and maintenance of the TDSP.

"We will work out the implementation details and timeline … to smooth transition," said PUB.

It is the focus of PUB to implement the "necessary measures and upgrading works to ensure that the Desalination Plant is able to produce desalinated water reliably."

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

Hyflux said on April 17, "The termination of the purchase agreement is expected to have a material impact on the financial performance of the group."

"Hyflux who is currently being overburdened by staggering debt among other issues.

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