Prasarana issues notice to remedy to Scomi

Prasarana Malaysia Berhad (Prasarana) has issued a Notice to Remedy to Scomi Transit Projects Sdn Bhd (Scomi) for failing to comply with Stage Gate 2 of the Second Supplemental Contract to deliver 10 sets of new four-car monorail trains, including seven sets for revenue service by 31 December 2015.

In a statement issued Wednesday, Prasarana said Scomi had not only failed to comply with the Stage Gate Schedule on the delivery of the trains but had also failed to submit any mitigation plan to remedy the delay as requested by Prasarana on January 4, this year.

Under the Notice of Remedy, Scomi had been given 60 days from 8 March 2016 to comply with the notice, failing which Prasarana would be at liberty to terminate the Principal Contract dated June 3, 2011, the Supplemental Agreement dated April 16, 2014 and the Second Supplemental Contract dated April 15, 2015.

“Under the principal contract signed between Prasarana and Scomi in 2011, the latter was contracted to deliver 12 sets of new four-car monorail trains,

“Construction of a new depot and installation of a new signalling system, as well as to upgrade the Kuala Lumpur monorail stations including the electrical and mechanical systems for a total contract value of RM494 million," the statement said.

To date, only six sets of new four-car monorail trains had been delivered of which five sets are currently in revenue service. Works related to the upgrading of the monorail stations and other related systems are still in progress pending the full delivery of the remaining four-car monorail trains.

On 1 March 2016, Scomi had obtained an ex parte injunction to restrain Prasarana from terminating the RM494 million Kuala Lumpur Monorail Fleet Expansion Project.