Mudajaya, China Communications Construction dispute widens with RM17.6mil claim

KUALA LUMPUR: Mudajaya Group Bhd's unit, Mudajaya Corp Bhd, has filed a second claim against China Communications Construction (ECRL) Sdn Bhd (CCC) for RM17.56 million, escalating a dispute tied to the East Coast Rail Link (ECRL) project. The claim is centered on unpaid certified amounts under CCC's interim payment certificates, under-certified and uncertified work completed, uncertified variations, and wrongful contra charges.

According to Mudajaya's filing with Bursa Malaysia, the arbitration process is still in its early stages, with parties currently in the process of selecting an arbitrator. Mudajaya had previously lodged an adjudication in December 2025 under the Construction Industry Payment and Adjudication Act 2012 (CIPAA) against CCC, seeking RM10.95 million for under-certified claims on Package 3 of the ECRL.

After the adjudicator ruled in favor of Mudajaya in May 2025, awarding RM7.77 million plus interest, costs, and expenses, CCC failed to make the payment. Consequently, Mudajaya sought court enforcement of the adjudication decision. CCC then initiated arbitration proceedings, challenging Mudajaya's obligation to pay the previously awarded RM7.77 million and requesting an additional RM22.75 million for extra costs, losses, liquidated damages, management fees, and interest.