Hyflux 6% Perpetual Securities

[Toni90]

Read somewhere Tuasone 95% completed. Such a waste. So close to completion and can start collecting money.

U read wrong lah. A lot not complete.

Where got collecting money. Most likely burning money too.

 

[BBCWatcher]

Pub take over at zero cost low possibility as it will be too glaring to do it already

PUB will take over the Tuaspring desalination plant (only) at $0. PUB already announced that's what'll happen in a matter of days because that's PUB's contractual right. When the supplier (Hyflux) fails to live up to the contract it voluntarily signed, that's the contract's terminating clause.

I don't think this government will stop asserting its contractual rights, especially when asserting its rights is in the national interest. The government is powerfully motivated to make sure that everybody understands a deal is a deal.

 

[eddy2099sg]

Hyflux only left with TS?

They have 30% of singspring which isn't significant

 

[MikeDirnt78]

The pipe that PUB install and maintain to all houses and factories is free? So you expect the water to be sold to you at $0.42? Who is going to pay and maintain the pipes, water treatment and test to ensure that the water is safe for drinking?

Maybe if request for untreated water or sea water can get below 42 cents.

Water treatment and desalination plants are not cheap to maintain. Otherwise, the 3rd world countries won't run out of water.

https://www.straitstimes.com/asia/s...to-spore-to-ease-water-crisis-in-metro-manila

 

[audiovideo]

一子错满盘皆落索 ......

 

[tmkedmw]

https://www.straitstimes.com/busine...-gives-tuaspring-more-time-to-remedy-defaults

Pub extends deadline from 5Apr to 30Apr

 

[tmkedmw]

https://www.channelnewsasia.com/new...ice-tuaspring-financial-position-pub-11393440

PUB CEO responded today to sias open letter.

 

[MikeDirnt78]

"However, given TPL's current financial position, PUB is unlikely to recover the compensation sum from TPL. Therefore, PUB has informed TPL that it is willing to waive the compensation sum and to purchase the TSDP for zero dollars."



Luckily Hyflux don't need to pay any compensation to PUB.

 

[havetheveryfun]

"However, given TPL's current financial position, PUB is unlikely to recover the compensation sum from TPL. Therefore, PUB has informed TPL that it is willing to waive the compensation sum and to purchase the TSDP for zero dollars."



Luckily Hyflux don't need to pay any compensation to PUB.

thought this one they said only recently ? why they post similar or same letter

 

[MikeDirnt78]

thought this one they said only recently ? why they post similar or same letter

Not sure I just read it today.

I read about the $0 takeover only.

 

[tmkedmw]

"However, given TPL's current financial position, PUB is unlikely to recover the compensation sum from TPL. Therefore, PUB has informed TPL that it is willing to waive the compensation sum and to purchase the TSDP for zero dollars."



Luckily Hyflux don't need to pay any compensation to PUB.

Ministry of Finance got guidelines for public private partnership and hearsay that what PUB is doing may not be in accordance with some guidelines.

 

[tmkedmw]

https://links.sgx.com/FileOpen/Announcement - 29 March 2019 PUB.ashx?App=Announcement&FileID=549409

Hyflux latest filed with sgx today.

 

[MikeDirnt78]

Ministry of Finance got guidelines for public private partnership and hearsay that what PUB is doing may not be in accordance with some guidelines.

They are guidelines only.

The partnership is still bounded by the T&C in the contract.

 

[tmkedmw]

They are guidelines only.

The partnership is still bounded by the T&C in the contract.

Whilst t&c are binding, it still begs the question why PUB signed off terms that are not in accordance with the MOF PPP guidelines?

 

[TabascoSauce]

Whilst t&c are binding, it still begs the question why PUB signed off terms that are not in accordance with the MOF PPP guidelines?

Bcos guidelines are not rules.

There are guidelines for washing hands, but it doesn’t mean u have to follow it.

 

[sgdividends]

The Hyflux investors will be at the Hong Lim Park at 3pm to 4 pm today sat. Do you all know about it?

 

[BBCWatcher]

Whilst t&c are binding, it still begs the question why PUB signed off terms that are not in accordance with the MOF PPP guidelines?

Hyflux could have raised that question before it (Tuaspring) signed its agreement with PUB. Perhaps Hyflux did, but Hyflux still signed the deal.

Bear in mind that a big part of the reason Hyflux signed a “bad” deal with PUB is that Hyflux wanted a showcase project in order to sell many more desalination plants to water authorities around the world. Having PUB (Singapore) as a happy customer is commercially worth a great deal. And that’s exactly what Hyflux got. Don’t cry for Hyflux or its investors here. They were adults, they signed their contract with PUB, and they knew exactly what they were getting (a questionable commercial proposition on its own, but an exceptionally valuable showcase to promote additional sales).

OK, that plan didn’t work. That’s capitalism. And if it wasn’t PUB it’d be some other water authority grabbing a desalination plant for $0 right now. This was all part of Hyflux’s business plan, and it just didn’t work.

 

[w1rbelw1nd]

Why not? Taxpayers and water ratepayers have absolutely no duty to save Hyflux as Hyflux. Nobody forced Hyflux to build its desalination plant at Tuaspring and to sign what now looks like a terrible contract with PUB. Hyflux and its investors did that. PUB is acting in the national interest, exactly as it should.

True. The fault lies primarily with the Hyflux tendering team, no one (including PUB) forced them to put up the commercially pricing bid they did.

I would argue that PUB might not have acted in national's best interest by taking a bid that seems to be

1. commercially unviable (pricing of desalinated water sold to PUB a lot lower than other plants)

2. from an entity with weak financials

Also, it is acting in many CONFLICTED roles as a customer, regulator, and buyer of the distressed plant.

PUB handling of this matter is a joke. They should bring in the AGC to make sure this kind of fiasco (all the mishandling) doesnt happen again with a government agency.

 

[Texas5ice]

True. The fault lies primarily with the Hyflux tendering team, no one (including PUB) forced them to put up the commercially pricing bid they did.

I would argue that PUB might not have acted in national's best interest by taking a bid that seems to be

1. commercially unviable (pricing of desalinated water sold to PUB a lot lower than other plants)

2. from an entity with weak financials

Also, it is acting in many CONFLICTED roles as a customer, regulator, and buyer of the distressed plant.

PUB handling of this matter is a joke. They should bring in the AGC to make sure this kind of fiasco (all the mishandling) doesnt happen again with a government agency.

Speaking with benefit of hindsight to judge PUB? If Hyflux signed the Tuas Spring project on less than ideal terms, but went on to win many lucrative projects and is flushed with money now, would you be making that statement?

Hyflux was a relative unknown until the Tuas Spring deal gave it the publicity it desired. That publicity alone is worth alot in advertising dollars. Hyflux took a gamble and failed. They failed because they were incompetent, not because of weak financials. Besides Tuas Spring, they have several failed overseas ventures. From PUB's perspective, Hyflux had the expertise and is willing to sell them water for 25 years at low price. Of course, PUB will gladly accept the bid. That is the definition of acting in the best interest of the nation.

There isn't a conflicted role as you claimed as well. PUB commissioned Hyflux to build Tuas Spring on a 25 years service concession arrangement. PUB is still the legal owner of Tuas Spring. Hyflux is only granted the right to operate Tuas Spring for 25 years on condition that they fulfill their contractual obligations to sell the required amount of water to PUB at contract price. Hyflux may sell the electricity generated from Tuas Sping to anybody for 25 years also.

I am sure PUB being the legal owner has termination clauses as well as penalty clauses built into the contract to make sure Hyflux delivers on their contractual obligations to SECURE our water supply. It will be remiss of PUB being the guardian of our water supply to do otherwise.

 

[w1rbelw1nd]

OK, that plan didn’t work. That’s capitalism.

Nope. You dont go around screwing private companies getting the best rate because "capitalism", especially for strategic assets like rail and water. See what happened to SMRT and now, Hyflux? In the end the government have to directly or indirectly own or subsidise (as with the case of SMRT) these assets.