HSS ENGINEERS BERHAD ("the Company") - Supervising Consultancy Services for Infrastructure Works for the East Coast Rail Link
Reference is made to the Company’s announcement dated 28 December 2017 in relation to the appointment of its associate company, HSS Integrated Sdn Bhd ("HSSI") as the Consultant to provide Supervising Consultancy Services for Infrastructure Works for the East Coast Rail Link (“ECRL”) Package 1 from KM0 to KM231.5 of the ECRL (“Contract”).
Suspension of Services Due to Government’s Review
The Company wishes to announce that following the instruction received by China Communication Construction (ECRL) Sdn Bhd (“Client”) from Malaysia Rail Link Sdn Bhd on 4 July 2018 in regard to ECRL project suspension, HSSI has on 9 July 2018 received a letter from the Client dated 6 July 2018 on suspension of HSSI’s services effective immediately until further notice.
Pending Government’s review, the suspension is not expected to have any significant financial impact on the operations and financials of the Company in the current financial period given the duration of the Contract is for a period of approximately 7 years and only preliminary mobilization of supervision staff has commenced which will be compensated for in accordance with the terms and conditions of the Contract. In the event the suspension of the Contract is lifted, it is expected for the Contract to contribute positively to the revenue and earnings of the Company.
The suspension of the Contract will not have any impact on the share capital and/or shareholding structure of the Company.
The Board of Directors does not envisage any specific risk to be associated with the suspension of the Contract.
Directors’ and/or major shareholders’ interests
None of the Directors and/ or Major Shareholders of the Company and persons connected to them has any interest, direct or indirect, in the Contract.
The Company will make further announcements in relation to any material developments concerning the Contract.
This announcement is dated 9 July 2018.
|Company Name||HSS ENGINEERS BERHAD|
|Date Announced||09 Jul 2018|
|Category||General Announcement for PLC|