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PUB contests Tan Kin Lian’s “for free” claim despite zero-cost takeover of Tuaspring desalination plant

The Public Utilities Board (PUB) issued a correction to Tan Kin Lian, disputing his comment that PUB took over the Tuaspring Desalination Plant “for free.” PUB clarified the plant’s negative value, though its zero-cost acquisition and waived compensation arguably left Hyflux investors with less to recover from.

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The Public Utilities Board (PUB) has issued a correction notice to former NTUC CEO and presidential candidate Tan Kin Lian, disputing claims made in his 28 September 2023 Facebook post regarding PUB’s takeover of the Tuaspring Desalination Plant, previously owned by Hyflux.

In his post, Tan commented that PUB took over the Tuaspring Desalination Plant “for free, at the expense of the investors and bondholders of Hyflux,” and incorrectly stated that the Tuas NEWater Factory was located at the same site as the Tuaspring plant. These comments prompted PUB to issue a public correction on 29 September.

PUB disputed Tan’s characterization of the acquisition, emphasizing that it did not take over the plant “for free.”

The agency clarified that the plant’s purchase price was determined by an independent valuation, which concluded that the asset had a negative value.

This assessment was shared in Parliament by then Minister for the Environment and Water Resources, Masagos Zulkifli, in April 2019, where it was disclosed that the cost to keep the plant operational exceeded its worth.

Given Hyflux’s precarious financial state, PUB waived a compensation sum owed by Tuaspring Pte Ltd (TPL), Hyflux’s subsidiary, to ensure Singapore’s water security was maintained.

However, while PUB’s statement highlights factual inaccuracies, some of Tan’s assertions may carry weight given the circumstances of the takeover and Hyflux’s financial collapse.

The plant was indeed taken over for zero dollars, with PUB waiving compensation from TPL.

The waiver, while justified by PUB as a necessity to safeguard water operations, still meant that Hyflux’s creditors, including 34,000 perpetual securities and preference shareholders owed approximately $900 million, were left empty-handed from the sale of the water plant.

This outcome arguably made the recovery of financial losses less possible for retail investors who had placed their faith in the once-renowned water management firm.

PUB’s statement further explained that its actions did not weaken Hyflux or exacerbate the situation for bondholders.

However, the broader context reveals that Hyflux’s collapse, largely due to mounting debts and mismanagement, severely impacted its investors, many of whom were left with substantial losses.

Whether PUB’s actions could have been different is a matter of debate, as Tan’s criticism reflects the frustration of retail investors who felt sidelined during Hyflux’s downfall.

PUB’s role in the saga, while arguably pragmatic in its handling of the desalination plant, does not address the broader financial disaster that affected Hyflux’s stakeholders.

In addition to the financial aspect, Tan’s post also inaccurately stated that the Tuas NEWater Factory and the Tuaspring Desalination Plant were located at the same site.

PUB corrected this by clarifying that the two facilities are situated 6km apart, with the NEWater Factory focusing on producing reclaimed water and the Tuaspring facility, now renamed Tuas South Desalination Plant, continuing to produce desalinated water. This technical error in Tan’s post does not detract from the underlying critique regarding how the takeover impacted Hyflux’s investors.

PUB’s public correction seems aimed at ensuring accuracy in public discourse, but it also raises questions about how much responsibility the agency bears in managing the aftermath of Hyflux’s collapse.

As of 10 a.m. on the morning after PUB’s response, Tan had not yet amended his post, and there was no correction direction issued under the Protection from Online Falsehoods and Manipulation Act (POFMA).

Hyflux once celebrated as a pioneering water technology firm, was ultimately brought down by financial mismanagement, with it taking on too much debt.

The Tuaspring Integrated Water and Power Plant, developed at a cost of S$1.05 billion, became a symbol of Hyflux’s downfall when the company failed to keep the plant operational, prompting PUB to take over the desalination facility in 2019.

In June 2022, Malaysia-based YTL Power International purchased the power plant assets of the Tuaspring facility for S$270 million. With PUB having already taken over the desalination plant at no cost, this acquisition of only the power plant further frustrated Hyflux investors, who believed the assets could have helped recover some of their losses.

While PUB took over the desalination plant to ensure water security, Hyflux’s investors were left with little to recover. Although the takeover may have been necessary for national interests, the financial consequences left many feeling betrayed.

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Singapore

EWL disruption enters day 6: LTA says damaged rail segments replaced as repairs continue

The Land Transport Authority (LTA) announced on Monday (30 September) that all affected rail segments between Clementi and Ulu Pandan Depot have been replaced, as efforts to restore train services along the East-West MRT Line continue. Services have been disrupted since 25 September, affecting 2.1 million passengers. SMRT aims to resume operations by 1 October.

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SINGAPORE: Work to restore train services along the four-station stretch of Singapore’s East-West MRT Line is progressing as all damaged rail segments between Clementi and Ulu Pandan Depot have now been replaced, the Land Transport Authority (LTA) confirmed on Monday (30 September).

This update follows extensive repair efforts to address damage caused by a faulty train that severely disrupted services between Jurong East and Buona Vista last Wednesday (25 Sept).

In a Facebook post, LTA noted that not only had the affected rail segments been replaced, but the third rail, which supplies power to the trains, was also reinstated.

A series of critical tests have already been completed, including a stress test involving a locomotive to ensure the integrity of the newly installed rails.

According to the authority, an endurance test began on 30 September, simulating a fully packed train by loading a train with sandbags and running it across the repaired tracks.

Another key procedure, known as an “electric meggering” test, was also completed.

This test confirmed that both the third rail and the rail that trains run on were adequately insulated, allowing engineers to safely switch on the traction power supply.

Train services have been down along this vital MRT corridor since 25 September, impacting approximately 2.1 million passengers.

Rail operator SMRT, together with LTA, is targeting 1 October to resume operations, pending favorable weather conditions and successful completion of final tests.

Initial plans to restore services by 30 September were delayed after stress tests conducted on 28 September revealed 12 additional cracks in rail segments that had not been replaced earlier, forcing engineers to replace a further 10 sections of rail.

The disruptions stem from an incident on 25 September involving a faulty first-generation Kawasaki Heavy Industries train, which has been in service for more than 35 years.

The train encountered a fault near Clementi station at around 9am, and while it was being withdrawn from service and redirected towards the Ulu Pandan Depot, a defective component in the train’s undercarriage, known as an axle box, dislodged near Dover station.

This led to the wheels running off the track, causing extensive damage to both the tracks and trackside equipment.

The incident caused significant structural damage, including 46 rail fractures over a 2.55km stretch of track, and led to a power trip that stalled other trains on the line.

It also damaged three point machines and stretches of the third rail, in addition to causing damage to power cables and rail fasteners, further complicating the repair efforts.

In a separate update posted on the morning of 30 September, SMRT confirmed that its engineers had successfully completed ultrasonic testing of rail welds.

This process involves measuring the reflection of high-frequency sound waves to inspect the integrity of the welded joints.

Additionally, the operator stated that the train endurance tests, which form part of the final stage of testing, were currently under way.

The full restoration of services now depends on the results of these endurance tests and favorable weather conditions.

The repairs are part of ongoing efforts by SMRT and LTA to ensure that passenger safety is prioritized before train services resume.

Once services are restored, SMRT has indicated that all necessary safety checks and repairs will have been thoroughly completed to ensure reliable service for passengers on this critical stretch of the East-West MRT Line.

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Labour

44-year-old Bangladeshi worker dies in worksite accident at Resorts World Sentosa

A Bangladeshi worker died after being struck by a collapsed steel structure at a worksite in Resorts World Sentosa. The accident occurred during lifting operations on 29 September. Authorities confirmed no foul play is suspected, and the contractor has been ordered to halt all lifting activities as investigations continue.

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SINGAPORE: A 44-year-old Bangladeshi worker tragically died following an accident at a construction site within Resorts World Sentosa (RWS) on Sunday (29 September).

According to Lianhe Zaobao, the worker, whose identity has not been disclosed, was fatally struck by a steel structure that collapsed during lifting operations at the site, which is part of the former Maritime Experiential Museum area.

Authorities were alerted to the accident at approximately 8 a.m. at 8 Sentosa Gateway. When police and Singapore Civil Defence Force (SCDF) personnel arrived, the worker was found unconscious.

A paramedic from the SCDF pronounced the man dead at the scene, according to the Singapore Police Force.

The Ministry of Manpower (MOM) confirmed that part of the steel structure collapsed while it was being lifted, causing it to strike the worker.

MOM has instructed Sunray Woodcraft Construction, the contractor responsible for the site, to halt all lifting activities immediately.

The ministry stressed the importance of ensuring that lifting equipment and supporting structures are properly designed, installed, and inspected as a general safety measure.

RWS said the incident took place in a section of the resort where the public does not have access. The area had previously housed the Maritime Experiential Museum, which was shut down in March 2020 to make way for the expansion of the S.E.A. Aquarium.

This project, part of the broader Resorts World Sentosa expansion, began in 2022. When completed, the rebranded Singapore Oceanarium is expected to be three times the size of the original aquarium and will include a research and learning centre.

In a statement, RWS acknowledged that it was informed of the accident by the contractor on the morning of 29 September and confirmed its cooperation with the authorities as investigations continue.

The police have ruled out foul play but have noted that the investigation is still ongoing.

The Manpower Ministry’s statistics show that there were 36 fatal workplace accidents in 2023, down from 46 in 2022 and 37 in 2021.

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