WRP instructs Ranhill to start work on water treatment plant amid dispute

PETALING JAYA: Ranhill Holdings Bhd has been instructed to commence work on a 30 MLD water treatment plant, intake plant and pipeline despite the lack of approvals from relevant authorities.
In a filing with Bursa Malaysia yesterday, Ranhill said its wholly owned subsidiary Ranhill Water Technologies Sdn Bhd (RWT) had received a letter from Messrs Sharif & Khoo, representing WRP Asia Pacific Sdn Bhd on Monday.
The letter requires RWT to commence work within 14 days from its receipt of the said letter, failing which WRP will commence action to claim for damages and loss.
Recall that RWT was awarded the contracts for the construction and supply of materials for the development of the water treatment plant, intake plant and pipeline by WRP on Aug 15, 2015 and Sept 22, 2015.
“RWT had, on numerous occasions expressed its position in terminating the contracts due to long delay and failure by WRP in obtaining necessary approvals from relevant authorities for the proposed development in particular planning permission thus rendering the contracts void under the law,” said Ranhill.
The company said it is unable to ascertain the actual damages and loss that may be claimed against RWT as it is disputing the allegations of breach of contracts.
RWT has engaged a legal firm to advise and represent RWT on the matter.
“Our external counsel is of the view that the allegation of breach of contract by RWT is without merit and consequently the claim for damages is baseless,” it added.