KUALA LUMPUR: GEORGE KENT (M) BHD has commenced an arbitration proceeding against its joint venture partner MALAYSIAN RESOURCES CORP Bhd (MRCB) over a dispute relating to securing of funds for the Light Rail Transit line 3 (LRT 3) project.
The notice of arbitration was served on Aug 13.
MRCB and George Kent set up a joint venture company - MRCB George Kent Sdn Bhd - to undertake and complete the LRT 3 project.
The JV company was appointed by Prasarana Malaysia Bhd on Sept 4, 2015 as the project delivery partner for the LRT 3 project.
The structure was later changed to a fixed price contract. Prasarana and the JV company have signed the revised contract on Jan 25, 2019 for the contract value of RM11.4bil.
"George Kent and MRCB have a difference of opinion in the interpretation of certain provisions of the shareholders' agreement with regards to the options for securing of the financing requirements for the JV company," the company said.
The company added it has the rights under the shareholders' agreement dated June 5, 2015 to refer the matter to arbitration and seek certain declarations as to the interpretation of those provisions.