Puncak Niaga Kuantan sewage treatment plant contact sum cut by RM57m to RM432m

KUALA LUMPUR (July 21): Puncak Niaga Holdings Bhd said its Kuantan regional sewage treatment plant contract sum has been revised downwards by about RM57.28 million to RM432.65 million from RM489.93 million.

In a filing with Bursa Malaysia today, Puncak Niaga said the contract amount was revised downwards by the main contractor, Jalur Cahaya Sdn Bhd, and the client, the Sewerage Services Department.

Back in May 2018, Puncak Niaga bagged the sewage treatment plant project via its wholly-owned subsidiary Puncak Niaga Construction Sdn Bhd (PNCSB) that had entered into a principal subcontract agreement with Jalur Cahaya.

According to the agreement, the contract period spans from March 5, 2018 to Feb 19, 2022, while PNCSB was appointed the principal subcontractor for the project in Kuantan, Pahang.

Meanwhile, in a separate filing, Puncak Niaga said its subsidiary PNCSB is being sued by its subcontractor, City Tunneling Sdn Bhd for RM1.33 million for a dispute over a payment claim in relation to the construction of a sewer pipe network in Bunus of Kuala Lumpur.

"PNCSB will consult its solicitors and seek to instruct its solicitors to contest the matter," it said.

Puncak shares closed unchanged at 21.5 sen today, giving it a market capitalisation of RM96.16 million.