Friday 29 Mar 2024
By
main news image

This article first appeared in The Edge Financial Daily, on April 13, 2016.

 

KUALA LUMPUR: Progressive Impact Corp Bhd, which has bagged a RM43.6 million contract for the sewerage treatment plant project in Johor from Danga Bay Sdn Bhd early this year, said the contract had been terminated.

In February, Progressive Impact announced that it had bagged the above contract via its 90%-owned subsidiary, Alam Sekitar Eco-Technology Sdn Bhd (ASET). In a filing with Bursa Malaysia yesterday, Progressive Impact said ASET had received a formal notice for the mutual termination of the letter of award from Danga Bay and had agreed to accept the termination with claims for costs of work done.

According to Progressive Impact, the termination was due to the recent changes to the design of the Sewerage Treatment Plant (Module 1), which resulted in an increase in the total project cost. Another reason was that ASET and Danga Bay were unable to reach a consensus on the increase, it added.

Thus, both parties have mutually agreed that based on the prevailing circumstances, it was no longer viable to proceed with the project.

“The termination will not have any effect on the issued and paid-up share capital,” it added.

      Print
      Text Size
      Share