Delivery Dates for MMEA Extended to 2022

SHAH ALAM: Delivery dates for MMEA OPV extended to 2022. Destini Bhd today announced that the government had agreed to extend the delivery dates of the three OPVs being built by the THHE/Destini joint venture.

This means that the first OPV – Tun Fatimah- will only need to be delivered by February, 2022 instead of October, this year as under the contract. The ship is targetted to be launched by late August, two months after the date that MMEA had stated previously will be the time it will take delivery of it. By agreeing to the extension the government may well allow THHE/Destini JV not pay any late delivery charges.

The first MMEA OPV at her slipway at the THHE Fabricators yard in Pulau Indah in November 2020.

Destini announcement to Bursa

Reference is made to the Company’s announcements made on 27 October 2016, 30 November 2016, 8 December 2016 and 19 January 2017 respectively.

Destini Berhad (“Destini” or “the Company”) wishes to update that the Government of Malaysia vide its letter dated 17 November 2020 has approved an extension of time for the supply, delivery, testing and commissioning of three (3) units of Offshore Patrol Vessels (“OPV”) C/W fitting and accessories for Malaysian Maritime Enforcement Agency (“Contract”) (“EOT”) with effect from 23 August 2020 to 22 August 2022. The average current progress of the works for the OPVs is approximately 74%.

In view of the EOT above, delivery dates for the 3 OPVs initially scheduled on 22 October 2021 for OPV 1, 22 April 2022 for OPV 2 and 22 August 2022 for OPV 3 have been extended to 22 February 2022, 22 April 2022 and 22 August 2022 respectively. Launching for the OPV1 which works in progress has reached 89.5% is targeted to be by the end of August 2021.

This announcement is dated 6 April 2021.

The announcement did not say why the company sought the extension but Malaysian Defence had previously reported on it. It is likely the pandemic had impacted the build as the statement stated that the extension letter was received in November last year though it is unclear why Destini waited almost five months before making it public.

Another view of the obstacles that is preventing the ship from being launch directly.

I was told in early February that the ship was supposed to be launch in early March but alas, it was scrubbed just a few days before that date. I was told that the debris that blocked the original launch dates last year was the main reason for the scrubbed launch. It is likely that the problems would be solved in late August for the launch. The delay in launching the first OPV also have knock-down effects on the second and third OPVs, which is now scheduled to be delivered to MMEA on the second and third quarters of 2022.

Tun Fatimah at its launch cradle in late February 2021. Malaysian Defence via source

The only silver lining in this episode is the fact that the end date of the project is clearly stated (22 August 2022) unlike the still unknown for the LCS.

— Malaysian Defence

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