China Railway First Group (CRFG), the contractor responsible for the FHL Tower project in Suva City, has submitted variation claims totaling $40 million, which accounts for nearly 60 percent of the initial agreement, following the challenges posed by the COVID-19 pandemic. This information was shared by Jaoji Koroi, the CEO of Fijian Holdings Ltd (FHL), during the company’s annual general meeting in Lami, in response to a shareholder’s concerns about rumors suggesting the project’s costs had doubled.
According to Koroi, the original contract was valued at $62 million. However, amidst the pandemic, when many construction projects were halted globally, FHL made the strategic decision to continue the work with China Railway. As a result, CRFG put forward its variation claims, but FHL contested these claims, ultimately agreeing to pay $12.5 million, which brought the total approved cost to $74 million.
Koroi emphasized that claims suggesting the contract value has doubled are inaccurate. Additionally, he conveyed positive news regarding the project’s future, as FHL has received Letters of Intent from prospective tenants for 85 percent of the building. This project is considered FHL’s largest investment since construction began six years ago.
In summary, despite the financial challenges presented by the pandemic, FHL is poised for success with significant tenant interest, suggesting a promising future for the FHL Tower. This situation highlights the resilience of companies adapting to unforeseen challenges while securing stable prospective income through tenant agreements.
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