MALAKOF 5264 MALAKOFF CORPORATION BERHAD, contractors settle Tanjung Bin power plant work completion disputes

 MALAKOF 5264  MALAKOFF CORPORATION BERHAD, contractors settle Tanjung Bin power plant work completion disputes

KUALA LUMPUR (March 28): Malakoff Corp Bhd's wholly-owned subsidiary Tanjung Bin Energy Sdn Bhd (TBE) has come to an agreement with a consortium of contractors to end the disputes around alleged breaches of contractual duties by the latter for the construction of a coal unloading jetty and bulk handling system at the Tanjung Bin power plant in Johor.

TBE and the HSL-TGE-GASB consortium — a joint venture among HSL Constructor Pte Ltd, HSL Constructor Sdn Bhd, Tecgates Engineering (M) Sdn Bhd and Gema Antara Sdn Bhd — entered into an agreement "for the full and final resolution of the disputes and differences which are the subject of the arbitration in accordance with mutually agreed terms and conditions".

The agreement was inked on Jan 26, 2022, according to Malakoff's company filing.

TBE initiated an arbitration against the consortium in March 2020, alleging that the contractors had failed to complete all work stated in the contract as required for the work to be considered as completed for the purposes of taking over by March 6, 2019 as agreed.

It sought RM7.9 million, after deducting the remaining milestone claims of RM28.44 million from TBE from the contractors while also demanding the contractors to deliver a warranty bond worth RM12.11 million.

Shares of Malakoff slipped 1.5 sen or 2.4% to 61 sen, giving the utility group a market capitalisation of RM3.03 billion.

http://www.theedgemarkets.com/article/malakoff-contractors-settle-tanjung-power-plant-work-completion-dispute