SINGAPORE — The National Environment Agency (NEA) overpaid a project partner by $0.53 million for the operation of a waste-to-energy plant from December 2021 to January 2025.This occurred as NEA did not check with the partner on an update of the project's financial model, which would have included necessary adjustments to costs. It only did so when the Auditor-General's Office (AGO) asked about it in August 2024.This was noted in the AGO's annual report released on Sept 9 that highlighted key lapses by various ministries and public agencies for the 2024 to 2025 financial year.NEA's project partner was required to provide waste incineration services to NEA for a period of 25 years from 2021 to 2046. It had to submit a financial model incorporating the cost, funding, operating and technical assumptions, and update it within 30 days when it found out certain costs like the land lease premium and grid connection costs — which AGO found the partner had known since 2018.With the eventual update of the financial model, NEA estimated that it would pay $1.73 million less for the remaining contract period from February 2025 onward. Read more