SCOMI Group Bhd’s indirect wholly owned subsidiary, Scomi Transit Projects Sdn Bhd (STP), and the government-owned Prasarana Malaysia Bhd have entered a completion agreement for the design, manufacture, completion and delivery of seven four-car vehicles and systems for the Kuala Lumpur Monorail worth RM122 million.

Prasarana, established by the Finance Ministry, is the asset owner of the KL Monorail in the Klang Valley.

Scomi said the agreement is conditional upon the issuance of an acceptance certificate by Prasarana after the expiry of a monitoring period and completion of remedial works necessary to put five four-car trains into revenue service.

This is pursuant to the settlement agreement, which is to be fulfilled by May 13 next year or another date mutually agreed to by Prasarana and STP, failing which, the completion agreement shall lapse and cease to have further effect.

“The works are to be completed within 18 months of the issuance of a notice to proceed by Prasarana,” said Scomi in a filing with Bursa Malaysia today.

The agreement will not have a material impact on Scomi’s earnings and net assets per share.

There is also no effect on Scomi’s gearing, as no bank borrowings are expected to be arranged for the agreement. – Bernama, June 24, 2019.