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Hyflux unit to be paid US$2.7 million in interest following arbitration dispute
WATER treatment company Hyflux said that SEPCOIII Electric Power Construction Corporation has been ordered to pay its wholly-owned unit, Hydrochem, US$2.7 million in interest, following an arbitration dispute.
SEPCOIII will also have to pay Hydrochem about S$4.2 million for the costs of arbitration, Hyflux told the Singapore Exchange in a filing on Tuesday.
The two payments are in addition to the US$16.1 million that SEPCOIII had been ordered to pay under the interim award in September last year.
Hydrochem had commenced arbitration against SEPCOIII regarding disputes which arose out of an engineering and procurement contract dated Aug 28, 2009.
The contract involved the development, design and manufacture of certain units for a desalination facility in Salalah, Oman.
The interim award was issued by the tribunal on Aug 31.
Hyflux shares closed flat at 37.5 Singapore cents on Tuesday, before the announcement was made.