Sulaiman Al Habib subsidiary, Masah Construction terminate MEP contract for maternity hospital project

Logo of Dr. Sulaiman Al Habib Medical Services Group

Dr. Sulaiman Al Habib Medical Services Group (Sulaiman Al Habib) announced that its subsidiary Gharb Al-Takhassusi Hospital and Masah Construction Co. agreed to terminate the mechanical, electrical and plumbing (MEP) contract for the maternity and pediatric hospital project, without any contractual or financial responsibility on any party.

The group said, in a statement on Tadawul, that there are no costs, as the contractor had not started the project work.

In addition, there is no impact on the group's financial results.

This termination will not result in any delay in the project implementation schedule or the date of its commercial operation, after obtaining the regulatory approvals.

Any other material developments will be announced in due course, in accordance with the relevant regulations, the statement noted.

According to data compiled by Argaam, Sulaiman Al Habib’s board of directors gave the green light, on Oct. 23, for the subsidiary Gharb Al-Takhassusi Hospital, to sign a MEP contract worth SAR 244.20 million (including VAT) for the maternity and pediatric hospital with Masah Construction Co., a related party.