HYFLUX said on Friday that one of its units has received a notice of termination in respect of the operations and maintenance (O&M) contract for its Magtaa seawater desalination plant in Algeria.

The notice was issued by the owner of the project, Tahlyat Myah Magtaa (TMM), and specifies that Hyflux Operation & Maintenance Algeria, a wholly-owned unit of Hyflux, has 40 days to cure certain purported events of default under the O&M contract, failing which TMM would terminate the O&M contract. 

Hyflux has a 47 per cent shareholding interest in TMM. 

Hyflux Operation & Maintenance Algeria said that it does not agree with or accept the allegations made in the notice and will seek advice on enforcement and protection of its rights in the project. 

The purported termination, if put into effect by TMM, is expected to have a material impact on the group's financial performance for the year ending Dec 31, 2020.  

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