China Railway First Group (CRFG), responsible for the construction of the FHL Tower in Suva City, has billed Fijian Holdings Ltd (FHL) roughly $40 million in variation claims, accounting for nearly 60% of the original estimated cost. This situation arose due to challenges posed by the COVID-19 pandemic, which impacted construction timelines worldwide.
During an annual general meeting held in Lami, FHL’s CEO Jaoji Koroi addressed shareholder concerns regarding rumors that the FHL Tower’s expenses had surged to double the initial agreement of $62 million. Mr. Koroi clarified that despite the pandemic causing disruptions, FHL chose to maintain progress with China Railway.
The variation claim of $40 million was contested by FHL, which ultimately agreed to pay out $12.5 million upon validating the claims. This brings the total expenditure approved by FHL’s board to $74 million.
Mr. Koroi emphasized the accuracy of the figures, stating that claims of the contract value doubling are incorrect. He also shared optimistic news, revealing that FHL has received Letters of Intent from potential tenants for 85% of the building space, underscoring the project’s significance as FHL’s most substantial investment over the past six years.
In summary, while construction and costs have been affected by external factors, FHL remains committed to its project, which is gaining traction in the market with a strong interest from tenants. This reflects not only the resilience of the company but also a positive outlook for the future development of the FHL Tower.
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