By John Lee.
A British court has supported a decision by the trustees of a pension scheme to petition to have the scheme’s sponsoring employers, Biwater, wound up.
The decision could lead to the potential liquidation of Biwater, which has projects in Basra, and in Iraqi Kurdistan.
As at 19th May 2023, Biwater owed the pension scheme over £39 million ($50 million), and the deteriorating financial position of the pension scheme was the product of Biwater’s financial problems.
Biwater is part of a consortium of companies intending to develop a major seawater desalination project in Basra, but according to the court judgement, this contract was not yet signed. Last week, the Iraqi Cabinet transferred responsibility for this project to Basra Governorate.
The company is also involved in a water and wastewater treatment project in the Kurdistan Region of Iraq; the court documents mention, “a contract in Kurdistan, supposed to start obtaining receipts in September 2021 but not yet started.”
Click here to read the full court judgement.
(Source: Bailii)
