Zecon Bhd’s contract to build the RM495 million Petra Jaya Hospital project in Sarawak has been cancelled by the Malaysian Public Works Dept (JKR).
In an exchange filing yesterday, the construction, property and toll concession company noted it received the termination notice from JKR on Tuesday which informed the company the 300-bed hospital in Kuching will not proceed.
Zecon is seeking legal advice on the contract termination on the opinion the termination is wrongful.
Health Minister Dr Dzulkefly Ahmad announced the plan to cancel the project earlier in July on fears it will not be completed within the stipulated time frame.
The project commenced on May, 2013 and was initially slated to be completed on November, 2016.
Zecon said on its website the 300-bed hospital was expected to be completed by June 30 this year.
However, Dzulkefly said inspection at the site revealed that only 34.5% of construction had been completed.