KUALA LUMPUR: Muhibbah Engineering (M) Bhd said its 51%-owned unit Muhibbah Viccana joint venture (JV) is currently in the process of ascertaining the financial and operational impacts following the termination of a RM584.84 million contract by the Bintulu Port Authority recently.

The JV is also compiling the relevant claims as a result of this termination for discussion with the port authority, it added.

“The JV is of the view that the Bintulu Port Authority will grant fair compensation to the JV and should not result in [an] adverse impact on the JV and the company,” said Muhibbah in a filing with Bursa Malaysia yesterday.

Last Thursday, Muhibbah announced that the Bintulu Port Authority had cancelled the contract with Muhibbah to build a supply base wharf at the second harbour basin of the port in Sarawak. The project, which was awarded to the Muhibbah Viccana JV on April 28, 2017, was expected to be completed by the end of 2019.