In a statement yesterday, Dr Wee said the call to relook the project awarded to Dhaya Maju LTAT Sdn Bhd was meant to optimise the use of public funds.
“The government has closely scrutinised the viability of such projects to gain the best value.
“For this reason, I wish to announce that the KVDT2 project will be reopened for tender, to which the Cabinet has agreed,” said Dr Wee.
KVDT2 is one of the 101 projects costing a total of RM6.61bil recently revealed in Parliament as being given out under the previous Pakatan Harapan government via direct negotiation, despite them stating there would be no direct negotiation under their rule.
On July 5, 2019, the Pakatan Cabinet decided to continue the project with Dhaya Maju at RM4.475bil, a 15% reduction from the RM5.265bil contract awarded during Barisan Nasional’s time, though these “savings” of RM789.75mil came with a reduced scope of work.
However, in October 2018, the Transport Ministry appointed Opus Consultants (subsidiary of Khazanah Nasional Bhd) to produce a professional review report, which concluded the project actually cost RM3.398bil based on the consortium’s original work scope.
“This information was never made available to the Cabinet at the time,” said Dr Wee.
“After taking into consideration the result of extensive studies and investigations, the ministry has determined that the current project is overpriced.
“Pursuant to this, the Perikatan Nasional Cabinet has agreed that continuing with the project based on direct negotiation is untenable.
“An independent checking consultant will be appointed initially before a new contractor is appointed via open tender in order to shorten the construction period of the project from seven to five years.”
The rehabilitation of the 110km twin tracks managed by KTM Bhd in the Klang Valley stretching from Kuala Lumpur to Klang, Salak South to Seremban, and Simpang Port Klang to Port Klang, is crucial given the high volume of both cargo and passenger trains using the tracks.
“This is important in view of the urgency to complete the project to serve an estimated 80,000 daily Komuter riders,” said Dr Wee.