KVDT Phase 2 contract cancelled

PUTRAJAYA: The government has cancelled the contract for the second phase of the RM5.2bil Klang Valley Double Track (KVDT) rail upgrade project.

Transport Minister Anthony Loke said the government felt the cost was excessively high.

He said the cancellation was also due to the manner in which the contract was awarded. It was through direct negotiation.

“A new tender will be called at the end of the year.

“It will be an open process and we aim to award the contract by the first half of next year,” he said, adding that the Cabinet decided on the cancellation at its weekly meeting yesterday.

The project involves 110km of railway tracks spanning from Kuala Lumpur to Klang, Salak South to Seremban and Simpang Port Klang to Port Klang.

The entire project involves infrastructure and system upgrades to ensure safe, reliable and comfortable train services. It was to be implemented over seven years.

Loke said the contract was awarded to Dhaya Maju LTAT Sdn Bhd on April 4, days before Parliament was dissolved.

“No payment had been made to the contractor yet although about 3% of works had been carried out.

“They are in the process of claiming the payment for the work done and possibly for compensation,” he said.

Loke said while the government acknowledged the need to upgrade the track, it was looking for a better deal.

On a separate issue, Loke reiterated his call to vehicle owners who had been issued with notices by the Road Transport Department to replace the faulty Takata airbags to do so as soon as possible.

He said until Sept 4, JPJ had issued 408,551 notices through postal service, costing the government RM1mil.

“Only 70,853 vehicles have had the airbags replaced, a sad but true reflection of the people’s attitude towards safety matters.

“We sincerely hope for a more positive attitude from the public,” he said.

Vehicle owners will be required to replace the airbags within two weeks after receiving the notice.

A second warning will be issued, followed by a RM300 summons – and the penalty will be increased to RM2,000 should the matter go to court.

Those who had been issued with the notices but yet to get the airbags replaced also risk not getting the road tax of their vehicles renewed.