KUALA LUMPUR (Dec 13): Protasco Bhd said today its subsidiary HCM Engineering Sdn Bhd received a termination letter from Turnpike Synergy Sdn Bhd (TSSB) for the construction of the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) due to the delay in the project's implementation.
In a statement to Bursa Malaysia, Protasco said the SUKE project is undertaken by the joint venture between HCM and Hatimuda Sdn Bhd on a 40% to 60% basis (HCM-Hatimuda JV).
Protasco said: "HCM-Hatimuda JV was awarded with the project by TSSB in August 2016 with a value of approximately RM315.8 million and was expected to complete it in 30 months by Feb 28, 2019. The notice of termination was served by TSSB as a result of an overall delay and physical delay of the project undertaken by HCM-Hatimuda JV."
"The project was solely financed, implemented and managed by the joint venture party, Hatimuda, hence, the termination does not have any significant impact on the net assets and earnings of Protasco Group for the current financial year and year ending Dec 31, 2019," Protasco said. — theedgemarkets.com