KUALA LUMPUR: Scomi Group Bhd’s indirect wholly–owned subsidiary, Scomi Transit Projects Sdn Bhd (STP) and government–owned Prasarana Malaysia Bhd, recently entered into an agreement (completion agreement) for the design, manufacture, completion and delivery of seven four–car revenue service vehicles and its systems for the Kuala Lumpur Monorail worth RM122 million.
Prasarana, a company established by the Ministry of Finance (MOF), is the asset owner of the Kuala Lumpur Monorail in the Klang Valley.
Scomi said the completion agreement was conditional upon the issuance of an acceptance certificate by Prasarana after the expiry of a monitoring period and completion of the remedial works necessary to put five four–car monorail trains into revenue service.
This is pursuant to the settlement agreement, which is to be fulfilled by May 13, 2020 or such other date mutually agreed by Prasarana and STP, failing which the completion agreement shall lapse and cease to have further effect.
“The works are to be completed within 18 months from the issuance of a notice to proceed by Prasarana,” said Scomi in a filing with Bursa Malaysia today.
The completion agreement would not have any material impact on Scomi’s earnings per share and net assets per share.
There is no effect on Scomi’s gearing as no bank borrowing is expected to be arranged for the completion agreement. — Bernama
