KUALA LUMPUR (June 27): Scomi Engineering Bhd said the High Court has extended the term of an injunction granted to its wholly-owned subsidiary, Scomi Transit Projects Sdn Bhd (STP), against Prasarana Malaysia Bhd (PMB)

The group said the injunction now restrains PMB, the asset and project owner for the Kuala Lumpur Monorail Fleet Expansion Project, from terminating the contract between PMB and STP, until further order of the court.

The court will hear the parties on July 21 with regards to the injunction and a suit filed by STP against PMB, it said in a filing with Bursa Malaysia today.

The contract involves the upgrade of monorail stations and systems and replacement of old trains with 12 new 4-car trains, six of which have been delivered, with five in successful revenue service.

“83% of the project works have been completed by STP, despite extensive delays beyond its control. The project to date has been delayed by over 1500 days and the contract provides that STP, as contractor, is entitled to be paid costs incurred, in respect of delay and any variations to the specifications,” the company claimed.

STP alleges it was not afforded its rights under the contract in connection with the delay and/or variations to the specifications, and that it did not receive payments when due.

As a result of which, Scomi Engineering said that STP was not able to renew the performance bond immediately on demand by PMB.

Meanwhile, Scomi Engineering also claimed that STP is not responsible for the delays mentioned in a Bernama article yesterday.

“The delays were caused by various matters over which STP had no control, and in respect of which STP was entitled to (and did not) receive extensions of time and prolongation costs,” it said.

The article had quoted PMB President and Group Chief Executive Officer Datuk Azmi Abdul Aziz as saying the project is now seriously overdue.

“If further delayed, it will adversely impact the travelling public at large, as well as other stakeholders,” Azmi was quoted as saying.

Azmi went on to say if the project had been implemented and in service by now, it would also have incorporated advances in safety, as well as provided improved access for persons with disabilities.

Scomi Engineering, in its filing today, clarified that STP has delivered an up-to-date monorail system, with new 4-car trains that meet the highest international standards.

“The trains employ the latest technology in components, manufactured by various high quality suppliers, including a bespoke drive train that has been engineered and developed by the company,” it claimed.

Scomi Engineering said the trains’ systems comply with European standards and provide universal access to cater for the needs of disabled travellers.

Scomi Engineering also said that STP stands ready to deliver the remaining trains for the originally-negotiated price, and to complete the project in 12 months, provided STP’s claims are dealt with promptly and fairly.

STP, it added, has during the last three months, engaged with some of the stakeholders and PMB, with a view to negotiating a solution to the current situation which involves the appointment of an independent expert to evaluate STP’s claims of RM365 million, a remedial plan which would see delivery of all remaining trains.

Despite this, PMB is seeking to terminate the contract, said Scomi Engineering.