Boustead Heavy unit terminates RM55m harbour tugs contract

PETALING JAYA: Boustead Heavy Industries Corp Bhd’s (BHIC) wholly-owned subsidiary BHIC Shipbuilding & Engineering Sdn Bhd (BSE) and KFS Support Services Sdn Bhd have agreed to terminate a RM54.90 million contract for the design, supply, construct, testing, commissioning and delivery of three 45-tonne bollard pull azimuth stern drive harbour tugs.
“KFS was unable to fulfil the conditions precedent set in the contract. Consequent thereto, both parties have agreed to terminate the contract,” BHIC said in a stock exchange filing yesterday.
On April 19, 2016, BSE had received and accepted a letter of award from KFS and subsequently signed the contract with KFS.
The contract was subject to KFS entering into a contract with Konsortium Pelabuhan Kemaman Sdn Bhd and obtaining a support letter from a reputable financial institution confirming the provision of financing for the project.