KUCHING: Bintulu Port Authority (BPA) terminated a multi-million ringgit contract with Muhibbah Viccana JV recently due to its commercial and operational issues.
Muhibbah Engineering (M) Bhd, which has a 51 percent stake in the Muhibbah Viccana JV, had sought clarification from BPA on the reason for the termination.
The contract for the design and build for the development of supply base wharf and associated works in the Second Harbour Basin, Bintulu Port worth RM584.84 million was awarded to the said JV about two years ago. The termination letter was dated Jan 17,2019.
“Muhibbah Viccana JV and Bintulu Port Authority are discussing on the compensation related to the termination of the contract,” Muhibbah said in a filing with Bursa Malaysia.
It has not indicated how long the negotiations would take.
The construction work for the project was supposed to be completed by end-2019.
Meanwhile, Muhibbah has secured a RM165 million contract from Turnpike Synergy Sdn Bhd for the design supply, installation, testing and commissioning of noise barriers for Project Sungai Besi-Ulu Kelang elevated expressway and Project Damasara-Shah Alam elevated expressway.
The project is expected to be completed in first quarter-2021.
Turnpike Synergy is a wholly-owned subsidiary of Projek Lintaran Kota Holdings, which is in turn 100 per cent-owned by Permodalan Nasional Bhd.
