Scomi’s Mumbai monorail contract axed

PETALING JAYA: Scomi Group Bhd’s contract for a monorail system in the Mumbai metropolitan region has been terminated by the Mumbai Metropolitan Region Development Authority (MMRDA).

In a filing with Bursa Malaysia, Scomi said the MMRDA issued a notice of termination of contract via a letter dated Dec 14, 2018 to the consortium of Larsen & Toubro Ltd and Scomi Engineering Bhd.

“The company is in discussions with its consortium partner with a view to fully enforce the consortium’s rights under the contract in respect of the notice of termination, including taking all necessary legal proceedings by acting on the advice of its solicitors,” it said.

The notice of termination takes effect 15 clear days from the date thereof. Scomi said the financial impact of the termination for the financial year ending March 31, 2019 is dependent on the outcome of the legal proceedings.

The RM1.85 billion contract for the design, development, construction, operation and maintenance of the monorail system in Mumbai was awarded by MMRDA to the consortium on Nov 7, 2008.

Scomi’s share price closed unchanged at 4.5 sen today with 550,200 shares traded.

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