Mudajaya’s Sungai Buloh office tower contract terminated

KUALA LUMPUR (August 16): Mudajaya Group Bhd said the RM118.6 million contract it was offered to build an office complex called Hevea Tower in Sungai Buloh, Selangor, has been terminated.

“We wish to announce that Mudajaya Corp Bhd (MCB) had on Aug 14, 2018, received a letter dated Aug 13, 2018 from KLIA Consortium informing it that the contract for the project had been terminated with effect from Aug 13,” it said in a filing yesterday.

The group announced on Oct 3 last year that its wholly-owned unit MCB had accepted the contract award from KLIA Consortium. The job was for a 16-storey office block complex in Sungai Buloh, which was supposed to be completed by September 2019.

The office complex is part of a proposed development spanning over 2,330 acres (943ha) of land owned by the Malaysian Rubber Board (Lembaga Getah Malaysia [LGM]).

Yesterday, the group said KLIA Associates Sdn Bhd and KLIA Consultancy Services Sdn Bhd, which formed the KLIA Consortium, were appointed by LGM as the project delivery partner (PDP), while MCB was appointed by KLIA Consortium as the work package contractor for the project.

But on March 15, 2018, LGM and KLIA Consortium both agreed to the mutual cessation of the PDP agreement, it said.

“MCB will submit the claims for the outstanding amount including any other costs incurred to close the project’s account within the stipulated time,” it added.

Mudajaya’s shares closed 0.5 sen or 0.94% higher at 54 sen, for a market capitalisation of RM318.53 million. — theedgemarkets.com

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