KUALA LUMPUR (Jan 17): The Bintulu Port Authority has cancelled a RM584.84 million contract with Muhibbah Engineering (M) Bhd to build a supply base wharf at the second harbour basin of the port in Sarawak.
In a filing with Bursa Malaysia, Muhibbah said its 51%-owned unit Muhibbah Viccana JV has received a notice from the Bintulu Port Authority to terminate the contract.
It is expecting a fair compensation to the termination of the contract.
"The company is in negotiation and discussion with Bintulu Port Authority on the notice of termination. The company reserves all of its rights and remedies," Muhibbah said.
The project, which was awarded to Muhibbah Viccana JV on April 28, 2017, was expected to be completed by the end of 2019.
Muhibbah shares closed down 2 sen or 0.66% at RM2.99 today, bringing a market value of RM1.45 billion.