Govt to negotiate settlement with Dhaya Maju-LTAT over terminated rail contract

KUALA LUMPUR: A “win-win" situation is being sought between the government and the company involved in the Klang Valley Double Tracking Phase 2 (KVDT 2) project, says Datuk Takiyuddin Hassan (pic).

The Minister in the Prime Minister's Department in charge of law said the Cabinet had given the green light to the Transport Ministry to negotiate an out-of-court settlement with Dhaya Maju-LTAT Sdn Bhd whose contract for the project was terminated on Aug 25 this year.

"On this matter, not only the civil case but for any civil case faced by the government, it is the government’s practice to always be open to negotiating an amicable out-of-court settlement.

“Similarly, in this case, the Cabinet last Friday said the company and the Transport Ministry should try and reach an agreement for a win-win solution, ” Takiyuddin said when replying to a question raised by Anthony Loke (PH-Seremban) in Dewan Rakyat on Wednesday (Nov 11).

Takiyuddin said the contract for the KVDT 2 project was awarded under a joint venture effort to the company in 2017 but was terminated by the previous administration in October 2018 and subsequently allowed to proceed in July last year following renegotiations.

However, he said the present administration decided to terminate the contract with the company in August this year, resulting in a legal suit being brought by the company.

He acknowledged that the KVDT 2 project could encounter some delays as the company managed to secure an interim injunction against the government.

Although court proceedings are still ongoing, Takiyuddin expressed confidence that a win-win situation could be found to resolve the issues.

The KVDT 2 project is a 80:20 joint venture between Dhaya Maju Infrastructure (Asia) (DMIA) and the Armed Forces Fund Board (LTAT).

The project spans 110km, involving two KTM railway tracks, one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang.

The KVDT 2 is one of the 101 projects costing a total of RM6.61bil, which was recently revealed in Parliament as having been given out by the previous Pakatan Harapan government through direct negotiations.

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