Hyflux PUB should have rejected Hyflux tender
PUB called for a tender for Tuaspring and received the following tenders:

Lowest - Hyflux - $0.35 per cu meter.
Next lowest - Keppel - $0.52
Others - $1.00

International benchmark - between $0.50 to $1.00.

If I were in charge in PUB, I will certainly NOT award the tender to Hyflux, as the price is unrealistically low. It is below international benchmark and is not achievable.

I will ask Hyflux to withdraw the tender. I may ask them to pay a penalty.

I will offer the tender to the second lowest tender, as the price is still below international benchmark and is quite achievable.

The purpose of PUB is not to kill off a company that made a mistake in the calculation that could lead to its destruction.

It should select an operator that is able to deliver the long term contract at a price that is within international benchmark.
It is a simple decision for me. But it seemed to be very difficult for the decision makers, and the highly paid ministers, in Singapore.

Tan Kin Lian.
 

Add Comment

---