KUALA LUMPUR (Dec 22): Knusford Bhd, which counts businessman Tan Sri Lim Kang Hoo as a major shareholder, announced today that its US$166 million (RM677 million) engineering, procurement and construction (EPC) contract for the ArthaLand Cebu Exchange project in the Philippines has been called off.

In a filing with Bursa Malaysia, Knusford said the parties were unable to reach mutually-agreed terms and conditions for the EPC contract.

"The company has on Dec 20 received a letter from ArthaLand Corporation not to engage Knusford and China Railway Dongfang Group Sdn Bhd (CRECSB) as the EPC contractor for the project,” the filing said.

ArthaLand is a boutique Filipino developer of green, world class developments in the residential and office segments.

On Feb 26, Knusford and CRECSB inked an agreement with ArthaLand to jointly undertake the EPC contract for the ArthaLand Cebu Exchange project, a 38-storey office building which will rise on a 8,440 sqm of property in Cebu, Philippines.

CRECSB, a wholly-owned subsidiary of China Railway Group Limited (CREC), one of the largest construction conglomerates in the world, was to form a 70:30 joint venture company with Knusford in the Philippines to execute the EPC contract.

Knusford shares did not trade today. It last traded at 93 sen on Dec 7, for a market capitalisation of RM92 million.