MAHB takes 3 firms to arbitration over klia2

PETALING JAYA: Malaysia Airports Holdings Bhd (MAHB) has issued notices of arbitration to KLIA Consultancy Services Sdn Bhd (KLIACS), Straits Consulting Engineers Sdn Bhd (SCE) and HSS Engineers Bhd’s unit for breaches of obligations related to the development of klia2 and services at KL International Airport (KLIA).

All agreements were signed in 2010. MAHB is seeking collective damages of about RM297.9 million from all three companies.

In the first notice, MAHB is claiming breaches in obligations under the project management consultancy (PMC) agreement it entered with KLIACS.

MAHB had appointed KLIACS to provide consultancy services for the proposed development of klia2 and the third runway at KLIA. MAHB took over the project management of klia2 in September 2011.

MAHB wants KLIACS to be wholly or partly liable for the losses and damages it has suffered, estimated to be RM148.93 million as at October 2016.

In the second notice, MAHB’s claim against SCE is for the estimated sum of RM84.31 million as at October 2016 relating to losses and damages it has suffered. MAHB’s claim also includes interest, costs and any other/further relief that the arbitrator may deem fit and just.

SCE was appointed to provide civil and structural consultancy services for the proposed development of klia2 and associated services at KLIA.

MAHB’s claim against HSS Integrated Sdn Bhd however is for a sum of RM64.6 million for an alleged breach of the memorandum of agreement for work done on klia2 and KLIA.

“Attempts have been made to amicably settle these disputes and/or differences. However, they remain unresolved,” MAHB said in a stock exchange filing yesterday.
The group’s solicitors preliminary view is that it has a good arguable case against KLIACS, SCE and HSS Integrated.