OKP unit awarded S$43.8 million from arbitration over 2017 PIE worksite accident

OR KIM Peow Contractors, a unit of OKP Holdings , has been awarded S$43.8 million over an arbitration case on a 2017 accident involving the Pan-Island Expressway (PIE) viaduct collapse.

An arbitration tribunal ordered consultancy services company CPG Consultants to pay the full sum to the company within 28 days from Mar 3, the mainboard-listed company said in a bourse filing on Monday (Mar 6).

In July 2017, a road viaduct under construction collapsed near the PIE exit to the Tampines Expressway, killing one worker and injuring 10 others. OKP Holdings clinched the viaduct project in 2015 for S$94.6 million. CPG had been engaged by the OKP unit to provide design services for a contract related to the accident.

The tribunal also ordered CPG to pay the company post-award interest on the total sum, calculated on a simple basis from Mar 31 until the date of payment, at a rate of 5.33 per cent per annum.

The payment is expected to have a positive impact on the financial performance of the group for the current financial year ending Dec 31, 2023, said OKP.

Shares of OKP closed S$0.005 or 2.9 per cent higher at S$0.178 on Monday before the announcement.