KUALA LUMPUR: Progressive Impact Corp Bhd
(Picorp) has announced that Danga Bay Sdn Bhd has issued a formal notice to mutually terminate the letter of award to its 90% owned subsidiary Alam Sekitar Eco-Technology Sdn Bhd for a RM43.6mil sewerage project in Johor Baru.
The environmental solutions provider told Bursa Malaysia that the termination was due to the recent changes in the design of the sewerage treatment plant, which led to the increase of the total project cost.
Taking into account that Alam Sekitar and Danga Bay were unable to reach a consensus on such an increase, both parties have mutually agreed that it was no longer viable to proceed with the project based on the circumstances.
The project, awarded in January, entailed the design, construction, completion, commissioning, testing and handing over of a new sewerage treatment plant in Johor Baru.
Alam Sekitar had agreed on April 12, 2016, to accept the termination with claims of costs for work done.
Picorp said the termination would not have any effect on the issued and paid-up share capital, the substantial shareholders’ shareholding, gearing and dividends of the company.
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