business

Malakoff seals deal with six firms to resolve power plant disputes

KUALA LUMPUR: Malakoff Corp Bhd has signed an agreement with six companies today to resolve and settle the disputes in relation to an alleged breach of contract at its Tanjung Bin power plant.

In a filing to Bursa Malaysia today, the company said its 90 per cent-owned subsidiary, Tanjung Bin Power Sdn Bhd, has signed an agreement with IHI Corp Japan, ISHI Power Sdn Bhd, and IHI Power Systems (M) Sdn Bhd, as litigation respondents, and Sumitomo Corp, Zelan Holdings (M) Sdn Bhd and Sumi-Power Malaysia Sdn Bhd, as arbitration respondents.

It said the disputes are related to the 22 different boiler tube failure incidents at the power station consisting of three 700 megawatt coal-fired units owned and operated by Tanjung Bin, and the inability of the plant to meet certain required output conditions.

“As a result of the agreement, a consent judgment will be entered in the litigation action on a strictly without admission of liability basis, and TBP (Tanjung Bin) as the claimant, will withdraw and discontinue the arbitration proceedings on the terms and conditions set out in the aforementioned agreement,” it said.

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