Scomi Mumbai monorail contract terminated


KUALA LUMPUR: Scomi Group Bhd has lost the Mumbai monorail project.

The company, in a filing with Bursa Malaysia on Monday, said Mumbai Metropolitan Region Development Authority (MMRDA) via a letter dated Dec 14 has terminated the contract awarded to the consortium, in which Scomi is a partner.

The Mumbai monorail project was awarded to Scomi Engineering Bhd and its Indian partner Larsen and Toubro Ltd on Nov 7, 2008.

“The company is discussing with its consortium partner with a view to fully enforce the consortium’s rights under the contract in respect of the notice of termination, including taking all necessary legal proceedings on the advice of its solicitors,” Scomi said.

It also said the financial impact of the termination for the financial year ended March 31, 2019 would depend on the outcome of the legal proceedings.

“The company will continue to provide updates from time to time on any further material development on this matter,” it said.

In November, Scomi said it has completed work for phase two of the Mumbai monorail project and in September has commenced operations and maintenance on phase 1.

Corporate News , Scomi