Libya: Hyflux's Libya projects could face delays

Singapore's water treatment firm Hyflux said last week of February that its projects in Libya could be delayed due to the political uncertainty in the country. 

Hyflux recently won a US$100 million engineering, procurement and construction contract for a seawater desalination plant in Tobruk, and was also in negotiations on two projects in Benghazi and Tripoli. 

However, the firm said that its two seawater desalination projects in Algeria have not been affected by the demonstrations there and are progressing as scheduled. 

Hyflux said that the Middle East and North Africa (MENA) region, which contributes 60 per cent to the group revenue, remains a key market. 

'Notwithstanding the prevailing risks involved in investing in MENA countries, they remain long-term compelling markets for us given the vast opportunities for wastewater recycling and seawater desalination solutions,' said Hyflux CEO Olivia Lum in a statement. 

Hyflux reported an 18 per cent increase in net profit to S$88.5 million (US$69 million) for its financial year ended Dec 31, 2010, from a year earlier, helped by higher contributions from both the municipal and industrial segments.