Boustead Projects unit to pay Veolia S$4.9m to settle contractual matter

BOUSTEAD Projects' wholly-owned subsidiary Boustead Projects E&C (BP E&C) has agreed to a settlement with Veolia ES Singapore Industrial in relation to a 2017 contract.

In an exchange filing on Wednesday, Boustead said the companies have amicably agreed to settle their disputes regarding the project, with BP E&C to pay Veolia a net sum of S$4.9 million as part of the settlement.

Last September, Boustead announced that BP E&C had received a letter of demand from solicitors acting for Veolia ES Singapore Industrial for the payment of S$17.8 million. This was in relation to a 2017 contract where Veolia appointed BP E&C to carry out civil and associated works for a Singapore hazardous waste-treatment facility.

Boustead said it has already made adequate provisions for payment of the settlement sum in the financial year ended March 31, 2021, so no additional provisions will be required.

Boustead Projects shares rose 1.9 per cent or 2 Singapore cents on Wednesday to close at S$1.07 before the announcement.