KUCHING: Bintulu Port Authority has terminated the RM584.84 million contract it awarded to Muhibbah Viccana JV about two years ago.
Muhibbah Engineering (M) Bhd, which has a 51 per cent equity interest in the JV, said it received the termination letter on Jan 17.
“The company is in negotiation and discussion with Bintulu Port Authority on the notice of termination.
“The company reserves all of its rights and remedies. The company anticipates a fair compensation with respect to the termination,” Muhibbah told Bursa Malaysia in a filing.
No reason was given for the contract termination.
To recap, Muhibbah Viccana JV was awarded the contract in April 2017 to undertake the “design and build for the development of supply base wharf and associated works in the Second Harbour Basin, Bintulu Port.
The contract entailed the construction of wharf, jetty and other associated facilities.
The construction work for the project was expected to be completed by end-2019.
