Gamuda-WCT JV served with claims for RM101m

KUALA LUMPUR: GAMUDA BHD []-WCT BHD []’s joint venture (JV) in Qatar has been served with a request for arbitration by Bahrain Asphalt Establishment B S C (Closed) (BAE) following a claim totalling QAR109.27 million (RM101.06 million).

In separate statements on Tuesday, March 9, Gamuda and WCT said the claim was over disputes in their sub-contract for the granular sub-base and flexible pavement works in the CONSTRUCTION [] of the 43km new Dukhan Highway from Shahaniya to Zekreet in Qatar.

The sub-contract was signed between the parties on Feb 21, 2006. Gamuda and WCT hold 51% and 49% of the JV respectively.

BAE is claiming from the Gamuda-WCT JV the total quantified sum of RM101.06 million comprising QAR94.87 million for alleged prolongation, escalation, collateral and associated costs for 728 days’ delay in completion of the sub-contract works; QAR13.43 million for alleged overcharge/wrongful deductions; and QAR,969 for alleged wrongful deduction for supply of bitumen.

It is also claiming further unquantified sums for legal costs, arbitration costs, and interest.

In their respective statements, Gamuda and WCT said they were of the opinion that the request for arbitration was pre-mature as the preconditions stipulated in the arbitration clause had not been met. They were of the view they have a good defence against the claims.

Gamuda fell two sen to RM2.79, while WCT lost nine sen to RM2.72 at the close of trading on March 9.