HSS: Consultancy contracts for ECRL suspended

PETALING JAYA: HSS Engineers Bhd announced that the consultancy contracts awarded to its associate company HSS Integrated Sdn Bhd (HSSI) for the East Coast Rail Link (ECRL) have been suspended pending government review.
The group told the stock exchange that it received letters on the suspension of HSSI’s services from its client China Communication Construction Sdn Bhd, following instruction from Malaysia Rail Link Sdn Bhd.
To recap, HSSI bagged two contracts under the ECRL project; a RM82.5 million contract from China Communication Construction to provide supervision consultancy services for infrastructure works for Package 1 ECRL which covers KM0 to KM231.5, and a RM25 million detail, design and shop drawing design consultancy services for KM0 to KM213.5.
“Pending government’s review, the suspension is not expected to have any significant financial impact on the operations and financials of the company in the current financial period given the duration of the contract is for a period of approximately seven years and only preliminary mobilisation of supervision staff has commenced which will be compensated for in accordance with the terms and conditions of the contract ,” said its board of directors.