SINGAPORE (Apr 2): After nearly five years, ecoWise Holdings has finally settled a dispute with the contractor of an underperforming power plant in China. That clears the way for the company to move forward and put things right with the plant, which has almost been entirely written off its books.

On Jan 15, the courts in China ruled that China Huadian Engineering, which was contracted to build the biomass power plant, will have to pay ecoWise RMB18.8 million ($3.9 million) in compensation. This amount will be offset against a remaining sum of RMB31.7 million due to the contractor. The courts also ordered Huadian to rectify the technical problems of the plant by June this year.

Wong Joo Wan, chairman of ecoWise’s audit committee, tells The Edge Singapore that he is relieved at the outcome of the legal case. “You can imagine the board’s apprehension. This David versus Goliath scenario can be quite daunting,” he says.

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