Govt nod to out-of-court settlement over rail project

THE Cabinet has given the green light to the Transport Ministry to negotiate an out-of-court settlement with Dhaya Maju-LTAT Sdn Bhd, whose contract for phase 2 of the rehabilitation of the Klang Valley Double Track (KVDT2) project was terminated on Aug 25 this year, says Minister in the Prime Minister’s Department Datuk Takiyuddin Hassan.

“On this matter, not only this 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 to reach an agreement that results in a win-win solution, ” he said in reply to a question raised by Anthony Loke (PH-Seremban).

Takiyuddin explained that the contract for the KVDT2 project was awarded under a joint venture effort to the company in 2017 but it 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 the company filing a legal suit against the government.

He acknowledged that the KVDT2 project might encounter some delays as the company managed to secure an interim injunction against the government.

Although court proceedings were still ongoing, Takiyuddin expressed confidence that a win-win situation would be reached.

KVDT2 is a contract awarded to Dhaya Maju-LTAT Sdn Bhd in 2018.

An 80:20 JV between Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) and LTAT, the project spans 265km of KTM tracks from Salak South to Seremban and a point from Simpang Pelabuhan Klang to Port Klang.

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