Ekovest JVA with Samling for Pan Borneo Highway project now void

KUALA LUMPUR: Ekovest Bhd announced today that the joint-venture and shareholders agreement (JVA) between its wholly-owned subsidiary, Ekovest Construction Sdn Bhd (ECSB), and Samling Resources Sdn Bhd (SRSB) for the Pan Borneo Highway project in Sarawak is now void.
In a filing with Bursa Malaysia today, Ekovest said ECSB had received a letter on June 4, 2018 from SRSB stating that Lebuhraya Borneo Utara Sdn Bhd, the project delivery partner for the highway, have not consented for the work package to be sub-contracted to Samling – Ekovest JV Sdn Bhd, the joint-venture (JV) company formed under the JVA.
"As such, SRSB is claiming that the JV company cannot carry out the project and the JVA is now void," it said.
To recap, on Jan 6, 2017, ECSB entered into an agreement with SRSB to jointly undertake the development and upgrading of the Pan Borneo Highway Phase 1, for work package contract WPC-02 (Semantan to Moyan River Bridge and KSR Interchanges) with a RM2.11 billion total contract value. — Bernama