TEHRAN, Nov 27_Singapore’s embattled water firm Hyflux says it has terminated a contract to design, manufacture and supply a seawater desalination package in southern Iran.
TEHRAN, Young Journalists Club(YJC)_Its subsidiary Hyflux International Pte Ltd (HIPL) had signed a contract in April 2018 to develop a reverse osmosis desalination plant in Bandar Abbas on the Persian Gulf.
The project, awarded by Iranian firm Asia Water Development Engineering Company (AWDEC), was suspended in October 2018 after the US pulled out of an international nuclear deal with Iran and reintroduced sanctions on the country, the Business Times of Singapore reported.
According to the English-language newspaper, Hyflux was unable to receive payments from AWDEC for works to be performed under the contract because of the sanctions.
The coercive measures target Iran’s oil exports and financial sector, essentially making 50 Iranian banks and their subsidiaries off limits to foreign banks on pain of losing access to the US financial system.
Hyflux announced on Tuesday that HIPL “has been released and discharged from all rights, duties, obligations, claims and demands”, the English-language newspaper said.
The announcement came hours after Hyflux said it had finally entered a rescue deal worth $293 million with United Arab Emirates-based utility group Utico following seven months of negotiation.
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