Explain why RM584m contract axed, Muhibbah JV tells Bintulu Port


KUALA LUMPUR: Muhibbah Engineering (M) Bhd wants the Bintulu Port Authority to explain why it had cancelled the award of a RM584.84mil contract.

Muhibbah said on Tuesday the joint venture – Muhibbah Viccana – had written to the port authority “to seek for its reason for the termination of its supply base development project”.

Muhibbah said the JV, in which it owns a 51% stake, was ascertaining the financial and operational impact and compiling the relevant claims as a result of this termination for discussion with Bintulu Port Authority. 

“The JV is of the view that Bintulu Port Authority will grant fair compensation to the JV and should not result in adverse impact to the JV and the company,” it said.

On Jan 17, Muhibbah announced to Bursa Malaysia the JV had received a notice about the termination of the contract. 

The JV won the RM584.84mil contract on April 28, 2017.  The project was supposed to be completed by the end of this year.

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