MUSCAT: Oman Cement Company (OCC) has received a compensation of $1.7 million from Danish contractor FLSmidth after it failed to complete the project on time.

In a statement issued to Muscat Securities Market, OCC said compensation is towards two projects including the installation of a new cement mill which was commissioned in 2016 and upgrading the pollution control facility for one of its clients in 2017.

“Due to the delay in competition of both projects, the Company had raised a claim for imposing liquidated damages on the contractor. Parallely, contractor had also raised claim for additional payment resulted from the additional cost incurred by them towards the cement mill project. Now the issue has been amicably settled and the Contractor has agreed to pay USD 1.757 million against liquidated damages to Oman cement Company (S.A.O.G) against the two projects mentioned above and had withdrawn their claim for additional post,” the statement added.