CFA Society Singapore
SINGAPORE (July 11): Hyflux has received a letter of intent (LoI) for the award of a second contract from Asia Water Development Engineering Company (AWDEC) for a seawater reverse osmosis desalination package at Bandar Abbas, Iran.
The announcement follows the $110.7 million contract awarded by AWDEC in April this year for a similar project at the same location, which Hyflux says AWDEC is pleased with thus far based on the project’s first phase of progress.
Under the anticipated second contract, Hyflux is expected to design, manufacture and supply another desalination unit with similar specifications to the first plant.
The facility is expected to supply 200,000 cubic metres of water per day, such that both plants, when completed, will supply a total of 400,000 cubic metres of water per day, and form part of five desalination plants which AWDEC plans to build as part of the proposed Saghi Kosar (SAKO) Desalination and Power Plant in Bandar Abbas, Iran.
Hyflux adds that both the group and AWDEC intends to “make best efforts” to agree on the mod, price, method of payment and other terms and conditions of the second contract within a two-month period.
The beleaguered water treatment firm’s announcement of its LoI with AWDEC comes as the group undergoes a debt restructuring exercise which, as of late, has seen the group's exit from a project in Saudi Arabia, court protection against creditors and deadline extensions in the filing of the group’s 2Q18 and 3Q18 financial statements.
The group is also currently seeking $200 million in rescue financing to fund its TuasOne Waste-to-Energy Plant project and US$250 million ($336.2 million) Qurayyat Independent Water Project, as well as to secure new projects in future.
Shares in Hyflux have been suspended since May, and last traded at 21 cents.