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Netlink NBN Trust, vendor end project for support systems
NETLINK NBN Trust and a vendor on Thursday agreed to mutually discharge a project contract following multiple and extensive discussions.
The contract relates to the design and implementation of a new generation business support system and operation support system for the fibre broadband operator.
Netlink NBN Trust expects to write off around S$15.4 million in capitalised project costs as a result of the move, after taking into account the trust's ability to continue using certain software licences, its trustee-manager disclosed on Thursday in a regulatory update.
The amount comprises S$6.1 million in capitalised internal staff costs and S$9.3 million in third party costs, as at Dec 31, 2019.
The trust said it would be in its commercial interests to agree to the mutual discharge to focus on its core business and operations. The mutual discharge also allows the continued use of any third-party software acquired in connection with the project.
The trustee-manager does not expect the mutual discharge to have a material impact on Netlink NBN Trust's distribution for the financial year ending March 31, 2020.
This is because the majority of costs incurred under the project were paid and capitalised during periods before and during the financial year ended March 31, 2019,
The specific terms of the mutual discharge were not disclosed due to confidentiality.
Netlink NBN Trust added that it will continue to explore options for the upgrade and/or enhancement of its business support systems and operation support systems.
The counter was trading at S$0.98 as at 11.35am on Thursday, down S$0.02 or 2 per cent.