In December 2018, water treatment firm Hyflux told the Singapore Exchange that it had suspended a contract in Iran with effect from 16 October. A Hyflux unit had signed it in April with Asia Water Development Engineering Company (AWDEC) for a seawater reverse osmosis desalination package in Bandar Abbas, followed in July by a letter of intent for a second contract. Hyflux said the reinstated US sanctions left it unable to maintain banking support to receive payment.
The report showed how sanctions and payment channels can decide the fate of desalination projects, regardless of technology or demand. For suppliers, cross-border financing itself became a project risk.
Source: The Straits Times