KUALA LUMPUR: The second phase of the Klang Valley Double Track (KVDT) will resume with a lower price tag, says Anthony Loke.
According to the Transport Minister, 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 of RM5.2bil.
Loke added that the cost was lowered without dismissing the critical aspects of the project, such as flood mitigation.
The second phase of the KVDT will be constructed and paid by the government over seven years, said Loke.
"So, it does not give a financial stress to the government," said Loke during a press conference at the Parliament lobby on Tuesday (July 9).
At the same time, Loke said the government has placed many 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 that Dhaya Maju LTAT Sdn Bhd will be required to sign a settlement agreement with the government.
Upon signing this agreement, Dhaya Maju LTAT Sdn Bhd will 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," he added.
On Tuesday (July 9), StarBiz, in quoting sources, 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.
The KVDT is a project to rehabilitate the double-track railway lines around the Klang Valley.