With Malaysian Airports announcing the termination of the KL Aerotrain contract, Pestech said it will be pursuing legal redress and is currently consulting legal advisors on the matter.
The group said it had 16 August 2023 received the Termination Notice dated 16 August 2023 from Malaysia Airports (Sepang) Sdn. Bhd. terminating it as the Contractor for the design, supply, installation, testing, and commissioning of the automated people mover and associated works at KL International Airport including financing, operation, and maintenance until 11 February 2034.
The Letter of Award for the Project at a total contract value was RM742.9 million was announced by the Company on 27 December 2021. The Project comprised D&B works of RM396,000,000, financing charges of RM104,200,000, and operation and maintenance services of RM242,754,400 over a period of ten years from the year 2025 to 2034.
The group added the termination of the project is expected to pose unfavourable financial effects to the Group.
