Dhaya Maju-LTAT to continue KVDT2 project until contract formally terminated

Datuk Mohamed Razeek Hussain

PETALING JAYA: Dhaya Maju-LTAT Sdn Bhd, the contractor of the Klang Valley Double Tracking Phase 2 (KVDT2) rehabilitation project, intends to continue performing its obligations until it is formally told that its contract had been terminated.

The company said this was to ensure that the project would be delivered on time and without delay.

Its chief executive officer Datuk Mohamed Razeek Hussain added that the company will also continue to engage with the Government and relevant stakeholders to ensure that the KVDT2 project and the interests of the public are not compromised or jeopardised.

“We cannot understand why there is a sudden rush to terminate the contract.

“The government needs to consider the direct impact to the economy during this coronavirus (Covid-19) pandemic, as well as look into lead-time statistics and cost of termination.

“The sites will be left idle. The live tracks, adjacent to stretches where we have removed the rails and ballast, risks deterioration and movement which will be a danger to the trains and the passengers, ” he said in a statement Tuesday (Sept 1).

On Friday (Aug 28), Transport Minister Datuk Seri Dr Wee Ka Siong said that the Cabinet had agreed to convert the KVDT2 rehabilitation project to an open tender, cancelling the directly-negotiated contract.

KVDT2 was one of the 101 projects costing RM6.61bil recently revealed in Parliament as contracts awarded via direct negotiation during the Pakatan Harapan government's watch.

Dr Wee said the call to relook the project awarded to Dhaya Maju-LTAT was meant to optimise the use of public funds.

The following day, he also revealed that former transport minister Anthony Loke had informed the Pakatan Harapan Cabinet on Sept 19 in 2018 that the cost of the project could be reduced by RM500mil to RM3bil if it was re-tendered.

But 10 months later, the project was offered via direct negotiations at the price of RM4.475bil.

Responding to this, Razeek said Dhaya Maju-LTAT had initially received the original letter of award dated April 4,2018, for the KVDT2 project during the tenure of the Barisan Nasional government following which it had commenced work and when the Pakatan government took over, the original KVDT2 award was terminated on Oct 19,2018.

“Having accepted that there was no basis to terminate the initial letter of award, the Pakatan government on July 5,2019, agreed to reappoint Dhaya Maju-LTAT to implement the project and the parties entered into a settlement agreement under which the Government agreed to issue a new letter of award.

“In return, Dhaya Maju-LTAT waived all its claims against the Government for the wrongful termination, ” he said, adding that following this, the company was appointed to continue with the project under the letter of award dated Aug 19,2019, at a lower contract sum.

Dhaya Maju-LTAT was formally given site possession on Sept 3,2019.

Razeek also said that the KVDT2 project has achieved a progress of 24%, made possible with its dedicated 1,512 employees under Dhaya Maju-LTAT and 261 supply and services companies.

“We have created job opportunities for more than 7,000 employees under the services, supplies and maintenance sectors.

“The company has made a total investment of RM350mil to procure machinery and specialised railway equipment to achieve timely project completion, ” he said, adding that this was in addition to around RM120mil worth of civil engineering machinery the company owned.

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