Hyflux: Termination notice given to desalination project in Algeria

Hyflux said on Tuesday that the seawater desalination plant at Souk Tleta, Wilaya of Tlemcen, Algeria, has received a purported notice of termination from the offtakers of the project.

“Hyflux does not agree with or accept the allegations made in the purported notice and will seek advice on enforcement and protection of its rights in the project,” in a filing to SGX on Tuesday, without providing details of the allegations.

The notice was received by Almiyah Attilemcania SpA (AAS), which is responsible for the development of the project, and Tlemcen Desalination Investment Company SAS (TDIC), which owns 51 percent of AAS, it said.

Hyflux owns 30 percent of TDIC, and a Hyflux subsidiary, Hyflux-TJSB Algeria SpA, performs operation and maintenance of the project, the filing said.

The offtakers, Sonatrach and Algerienne des Eaux, specified eight days’ prior written notice for the purported termination of the water purchase agreement, it said.

Hyflux said that the carrying amount of its investment in AAS was fully provided for in 2017 and the purported termination wasn’t expected to have a material impact on financial performance this year.

Hyflux shares have been suspended since May 23.

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