SCIB group managing director Rosland Othman
KUCHING (Feb 14): Civil engineering specialist Sarawak Consolidated Industries Bhd (SCIB) today announced that it was terminating its engineering, procurement, construction and commissioning (EPCC) project involving earthworks on the Prabumulih-Muara Enim tolled road in Sumatera, Indonesia, valued at RM55.59 million.
The group said its wholly-owned subsidiary SCIB International (Labuan) Ltd (SCIBILL) had issued a notice of project’s termination to Indonesian corporation, PT Cipta Multi Sarana (PTCMS).
“SCIBILL, which accepted a letter of award for the EPCC project on Aug 18, 2020 from PTCMS, has decided to take the necessary measures to protect its interests following the lack of progress in the project arising from uncertainties related to the Covid-19 pandemic and in view of the initiatives being taken to review and update SCIB’s order book records.
“SCIBILL and PTCMS have mutually agreed to terminate the contract and unconditionally release and indefinitely discharge both parties from all claims, liens and obligations of every nature arising out of or in connection with the performance of the works, and all amendments thereto, provided that the parties’ obligations under a settlement agreement are fulfilled,” said SCIB in a statement, which also quoted SCIB group managing director Rosland Othman as having said that the termination was done ‘in the best interests of the SCIB, as there had been no progress in the project’.
“On the part of PTCMS, it has acknowledged that there are no penalties or liquidated ascertained damages on SCIBILL,” said the SCIB.