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Ranhill terminates housing project in Libya

PETALING JAYA: Ranhill Bhd, through its subsidiary Amora Ranhill Consortium Sdn Bhd, has submitted a notice of termination to the Housing Infrastructure Board (HIB) of Libya on Sunday for the general works contract for the design, build and handover of 10,680 housing units in Tajura, Libya.

According to the announcement, the company acted to invoke force majeure pursuant to Article 36 of the contract and Article 360 of the Libyan Civil Code as a result of the civil war that began as social unrest in February, which barred the company from undertaking the contract.

"Since mid-March 2011, the project site has been occupied by government forces and as a result Ranhill can no longer secure or access the site.

The combination of these events has meant that it has proved impossible for Ranhill to obtain access to the site and to resume work for a period of nearly six months.

In addition, there is no evidence to suggest that position is likely to change in the foreseeable future," the company stated in the announcement.

In view of the unrest in Libya, Ranhill stated that the company is still unable to ascertain the termination of the contract with certainty.

However, the company stated that the termination does not affect its ability to negotiate its claims for time and money which were under consideration by the HIB at the time the project was suspended in February.

"The termination was based upon legal advice received that terminating the contract as a result of the ongoing social and political unrest in Libya was lawful and did not contravene Libyan law. On this basis, Ranhill does not envisage any legal effect on the termination," it stated.

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