Lafarge Malaysia Bhd said its RM270 million sub-contract for the East Coast Rail Link (ECRL) has been suspended until further notice, but added that completed work will be compensated duly.
Its wholly owned unit, Lafarge Cement Sdn Bhd, reached an agreement with China Communications Construction (ECRL) Sdn Bhd — the main contractor for the 688km rail line — on March 19 this year for the supply of cement for all eight packages of works.
Works on the rail project have been suspended indefinitely to assess its financial feasibility and renegotiate terms after the overall estimated cost rose to RM80.92 billion from the initial RM55 billion estimate.
In an exchange filing yesterday, Lafarge noted the suspension will not significantly impact its finances as completed work up to the point of suspension will be compensated for, in accordance with the terms and conditions of the contract.
It said the impact of the suspension after this period can only be assessed upon receipt of clear direction from the contractor or project manager Malaysia Rail Link Sdn Bhd.
This will only be available after the completion of the government’s review of the project. The company will make
further announcements on any material developments arising from the status of the contract.
Meanwhile, Gas Malaysia Bhd has inked a memorandum of understanding (MoU) with Japan’s Tokyo Gas Co Ltd to explore investment opportunities in the development of the natural gas value chain in South-East Asian region except Vietnam. According to a filling to Bursa Malaysia yesterday, Gas Malaysia said the scope of work will include technical and commercial information, personnel exchange for educational and training purposes and joint investments in new projects. The MoU will last for two years.
On another note, WCT Holdings Bhd said it has secured a RM555 million contract for works on a commercial mixed development in Kuala Lumpur via its wholly owned unit WCT Bhd (WCTB).
The project is located on Jalan Tun Razak/Jalan Davis and comprises a four-storey shopping complex, three-storey car park, one level of open landscape with retail space and one information centre for future development.
As part of the award by Lendlease Projects (M) Sdn Bhd, WCTB is entitled to be paid RM27.75 million for the preliminary works ahead of an execution of a trade contract slated for Oct 10 this year. — TMR