Scomi Engineering seeks arbitration in dispute with Prasarana

PETALING JAYA: Scomi Engineering Bhd yesterday issued a notice of arbitration against Prasarana Malaysia Bhd to resolve the dispute between them in relation to the termination of the RM494 million Kuala Lumpur monorail fleet expansion project.
In a filing with the stock exchange, Scomi said the effect of the arbitration on its ongoing business performance is dependent on the outcome. 
"The company will continue to provide updates from time to time on any further material developments in this matter," it said.
The dispute arose in relation to the notice of termination dated June 9, 2016 issued by Prasarana which gave Scomi Transit Projects Sdn Bhd, a wholly owned subsidiary of Scomi Engineering, 14 days from the notice date to renew a performance bond associated with the project, failing which the contract dated June 3, 2011 will terminate.
The contract was for an upgrade of the Kuala Lumpur monorail stations and the electrical and mechanical system, the construction of a depot and the delivery of 12 sets of new four-car trains.