KUALA LUMPUR (Oct 19): Rohas Tecnic Bhd said its unit is seeking to refer a dispute with the Power Grid Company of Bangladesh Ltd, relating to the supply of a transmission line in that country, to arbitration.

The subsidiary, HG Power Transmission Sdn Bhd, was engaged as contractor for the supply and installation of the transmission line under a contract concerning rural electrification in Bangladesh.

HG Power is claiming US$5.78 million from Power Grid Company, being outstanding payment of invoices for price variation and additional claims made under the contract, said Rohas in a bourse filing.

 “The contract provides that claims for price adjustment for cost of labour and material are to be based on the price adjustment formula and labour and material indices, pursuant to the terms under the contract,” the group said.

It said HG Power submitted its invoices for price variation and additional claims after completion of the contract, and that the arbitration was being sought subsequent to efforts to resolve the matter in an amicable manner.

Shares of Rohas finished down half a sen or 2.13% to 23 sen on Wednesday (Oct 19), giving the group a market capitalisation of RM108.71 million.