Econpile Issues Termination Notice To SUKE Highway Contractor, Gabungan Strategik

Econpile and its joint venture partner, China Communication Construction Company (M) Sdn Bhd (“CCCC”) have issued a Notice of Termination for the SUKE highway foundation work to Project Contractor Gabungan Strategik Sdn Bhd.

Both the sub-contractors were involved in the execution and completion of the foundation, substructures, and other ancillary works for SUKE Highway or Projek Penswastaan Lebuhraya Bertingkat Sungai Besi-Ulu Kelang Package CA3.

Back in 2016, Gabungan Strategik was awarded to CCCC and Econpile for the job with a total value worth RM389 million with CCCC taking the lead role. However, in January this year, CCCC issued a Notice of Termination to the main contractor on alleged fundamental breach and refusal to perform their fundamental obligations under the agreement. TO which Gabungan responded by accepting the termination and reserved its rights, on damage claims for the work already completed.

The Company is communicating with GSSB and CCCC to obtain detailed information on the Termination. Due to the preliminary status of the matter, the financial impact arising from the termination is still being assessed and cannot be ascertained as yet.

SUKE Highway or Sungai Besi-Ulu Kelang Elevated Expressway is a 24.4km, three-lane, dual-carriageway running from Sri Petaling to Ulu Kelang. This was also the construction site that had received a stop order after massive debris collapsed on a car roof killing the passenger.

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