KUALA LUMPUR: MMC CORPORATION BHD []'s 51%-owned subsidiary Prai Power Sdn Bhd (PPSB) has filed a statement of claim for RM83.61 million in an arbitration against Sumitomo Corporation for breach of duty of care.
In a filling Wednesday, Aug 17, MMC Corp said PPSB, which owns a 350MW combined cycle gas turbine power plant located in Prai, had entered into an engineering, procurement, CONSTRUCTION [] contract (EPC) with Sumitomo in October 2000 for the latter to build Prai Power Plant.
MMC Corp said PPSB's claim was that Sumitomo breached the obligations it owed to PPSB under the EPC Contract by supplying a rotor that was defective in design, manufacture and/or supply which rotor was found damaged on Sept 11, 2006.
'PPSB is, amongst others, seeking the costs of the replacement of the rotor, the commercial losses arising from the reduction in capacity payments and other consequential losses.
'Based on advice received from its solicitors, PPSB believes that it has strong grounds for the claim,' it said.
In a filling Wednesday, Aug 17, MMC Corp said PPSB, which owns a 350MW combined cycle gas turbine power plant located in Prai, had entered into an engineering, procurement, CONSTRUCTION [] contract (EPC) with Sumitomo in October 2000 for the latter to build Prai Power Plant.
MMC Corp said PPSB's claim was that Sumitomo breached the obligations it owed to PPSB under the EPC Contract by supplying a rotor that was defective in design, manufacture and/or supply which rotor was found damaged on Sept 11, 2006.
'PPSB is, amongst others, seeking the costs of the replacement of the rotor, the commercial losses arising from the reduction in capacity payments and other consequential losses.
'Based on advice received from its solicitors, PPSB believes that it has strong grounds for the claim,' it said.
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