What compensation is PSKIN entitled to following the SKIN project termination?

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PSKIN is entitled to compensation as per the concession agreement formula, and discussions are ongoing for an amicable settlement.

Following the mutual agreement to terminate the National Immigration Control System (SKIN) project, Prestariang SKIN Sendirian Berhad (PSKIN) is entitled to compensation calculated according to a specific formula outlined in the concession agreement. The company is currently engaged in discussions with the Home Ministry to reach an amicable settlement regarding this compensation.
Compensation Entitlement Under the Concession Agreement

PSKIN's entitlement to compensation is explicitly defined by a formula established within the concession agreement. This agreement stipulated that the government was not obligated to make any payments to PSKIN during the initial three years of the project's development. Instead, PSKIN was solely responsible for the entire funding and execution of the SKIN Project.
Risk Bearing and Payment Structure

The responsibility for the completion and execution risks of the SKIN Project was entirely borne by PSKIN, operating under a fixed contract value for the full 15-year concession period. This fixed value encompassed potential fluctuations in interest rates, foreign currency exchange, and the prices of IT hardware and software. The government's obligation to pay for the services was contingent upon the successful implementation of the SKIN Solution across all designated immigration sites, both within Malaysia and internationally.
Ongoing Settlement Discussions

PSKIN has stated that it is not in default of the concession agreement and respects the government's decision to terminate the concession through expropriation, as permitted by the agreement's terms. The company has indicated it does not intend to challenge the termination. The ongoing discussions between PSKIN and the government aim to resolve the compensation matter amicably, reflecting the interests of both parties involved in the cancelled project.

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What compensation is PSKIN entitled to following the SKIN project termination?

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