HSS integrated instructed to resume ECRL work

KUALA LUMPUR, May 3 (Bernama) — HSS Integrated Sdn Bhd (HSSI), an associate company of HSS Engineers Bhd, has been instructed by China Communications Construction (ECRL) Sdn Bhd to resume its services for the East Coast Rail Link (ECRL) project that was suspended in 2018.

Under the two contracts inked earlier, HSSI is to provide supervising consultancy services for infrastructure works as well as detail design and shop drawing design consultancy services for infrastructure works for the ECRL.

In two separate filings with Bursa Malaysia, the engineering and project management consultant said HSSI received the letters from China Communications Construction, dated April 26 and April 30, asking it to restart work.

Malaysia and China recently agreed to resume the rail project after a supplementary deal was re-negotiated, which brought the cost down by 32.8 per cent or RM21.5 billion from the original price tag of RM65.5 billion to RM44 billion.

”Due to the shift in the alignment of the ECRL, there will be a revision of HSSI’s scope of services and fees,” HSS Engineers said in both filings. It was earlier estimated that the two contracts would be worth up to RM107.5 million.

The company said the resumption of the contract was expected to contribute positively to its revenue and earnings but it would only be able to assess the actual financial effects on finalisation of HSSI’s scope of services and fees.

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