Loke: Second phase of double-track rail job to resume


  • Business
  • Wednesday, 10 Jul 2019

KUALA LUMPUR: The second phase of the Klang Valley Double Track (KVDT) will resume with a lower price tag, according to Transport minister Anthony Loke.

The project was secured by Dhaya Maju LTAT Sdn Bhd with a new contract costing RM4.475bil, which is a reduction of RM789.75mil (15%) from its original cost.

This confirms StarBiz’s report which was published yesterday, stating that phase two of the project would resume soon.

Quoting sources, StarBiz reported that phase two of the KVDT is set to resume at a lower price.

The source also said that no competitive tender was called for the project.

Loke added that the contract cost was lowered without dismissing every critical aspect of the project such as flood mitigation.

The second phase of the KVDT would be constructed and paid by the government across seven years, he said.

“So it does not give a financial stress to the government,” he told a press conference at the Parliament lobby here yesterday.

At the same time, Loke said the government has placed mechanisms and safeguards to ensure that the appointed contractor would complete the project.

“There is better monitoring in place and we will appoint a competent independent checker,” Loke added.

According to Loke, the move to resume the second phase of the KVDT was decided by the Cabinet last Friday.

He said Dhaya Maju LTAT would be required to sign a settlement agreement with the government. Upon signing the agreement, it would not be allowed to claim any compensation from the government, Loke said.

“They cannot claim any compensation from the agreement even with an eight-month suspension. This is based on the spirit of us reviewing the project.”

The KVDT is a project to rehabilitate the double-track railway lines around the Klang Valley.

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