Taghill Berhad formerly known as Siab Holdings announced that its wholly-owned subsidiary, Siab (M) Sdn. Bhd. had accepted the Mutual Determination Agreement with City Centre Columbarium Berhad to terminate the Letter of Award issued in 2021 for the building construction project involving the construction of 1 block 15-storey columbarium, inclusive of a 4-storey car park, in Sungai Besi, KL.

The parties said the termination is not expected to have a material impact on the earnings, gearings, net assets or share capital and shareholdings of the substantial shareholders. The balance contract value of the Letter of Award for Columbarium Project is RM25.01 million (of total RM38.88 million) and as of 28 January 2024, the percentage of completion is 36.00%.

Siab is to prepare the final account for the Columbarium Project for the value of work done within the next 6 months.

Taghill said the termination was due to delay as the project commenced in April 2021 and experienced prolonged delays due to the COVID-19 pandemic and movement control orders that disrupted the operations. While the original completion date in July 2023 was extended to 11 August 2024, escalating material costs and the inability to reach an agreement with CCCB on a revised cost plan and work programme rendered the continuation of the project unfeasible