Taliworks Corp Bhd will seek a new partner for a RM374.7mil waste-water treatment project in Yinchuan City, China, after its original partner allegedly defaulted on its obligation.
Taliworks said it had, on Tuesday, received a letter from the Yinchuan City Waste Water Treatment Co Committee indicating that both Taliworks and Beijing Puresino-Boda Environmental Engineering Co Ltd (BODA) had yet to formalise the joint-venture (JV) company, in which Taliworks would have a 70% stake, to undertake the project.
“In accordance with the terms of the tender requiring the JV partners to jointly and severally assume responsibility of the entire project and following a default by BODA to fulfil its obligation on its part, the company is now obligated to assume responsibility of the entire project,” the water services company told Bursa Malaysia yesterday.
As a result, Taliworks has been offered to assume the project in its entirety in accordance with the terms of the tender.
Taliworks had replied to the committee, saying it had accepted the offer and would look for another partner to jointly participate in the project at a later date.
Taliworks and BODA had on Aug 25, 2010 signed a concession agreement with Yinchuan Municipal Construction Bureau to take over the four existing municipal waste-water treatment plants with recycled water facilities in Yinchuan City on a takeover-operate-transfer basis.
The JV company would have the right during a 30-year concession period to expand the waste-water treatment capacity and the right to process and sell recycled water.
At the time of the signing, BODA was already Taliworks’ JV partner in Puresino (Guanghan) Water Co Ltd, which manages and operates a municipal waste-water treatment plant in Sichuan for a 30-year concession expiring in 2033.
