This article first appeared in The Edge Financial Daily, on June 21, 2016.

KUALA LUMPUR: Puncak Niaga Holdings Bhd said its wholly owned unit Puncak Niaga Construction Sdn Bhd (PNCSB) had received two separate notices of arbitration from the subcontractor that PNCSB had terminated for the sewerage pipe network project in the Bunus catchment area here.

The subcontractor, Genbina Sdn Bhd, is seeking a payment of RM143.87 million, together with damages, interests, costs and other such relief as the arbitrator deems fit, from PNCSB.

PNCSB had appointed Genbina as its subcontractor for the Bunus project, worth RM394 million, via a letter of award (LoA) dated March 6, 2014. The project was awarded to Genbina on Feb 14, 2014.

In a bourse filing, Puncak Niaga said the arbitration notices from Genbina, dated June 17, was received by PNCSB yesterday.

PNCSB terminated Genbina on June 10 this year, allegedly due to various breaches of contract under the LoA, and slow progress of work.

The notices, added Puncak Niaga, referred the differences arising from the termination of the contract, and an operate, maintain and service agreement, to arbitration under the Kuala Lumpur Regional Centre for Arbitration (Amendment) Act 2011 for alleged sums of RM119.7 million and RM24.17 million respectively.

“PNCSB has instructed its lawyers to contest the matter,” the filing read.