KVDT Phase 2 Project Will Be Resumed With Savings of Over RM700 Million
The 110-kilometre Klang Valley Double Track (KVDT) Phase 2 project will be revived with a cost reduction of over RM700 million, said the Transport Ministry, Anthony Loke Siew Fook. He said that the Cabinet on July 5 decided that the project will be resumed by Dhaya Maju LTAT Sdn Bhd with a new contract costing RM4.475 billion, which is a reduction of 15% from the original cost.
“(The cost reduction) does not reduce the critical scope set by the government,” he said during the Ministers’ Question time in the Dewan Rakyat on 9 July 2019.
He was responding to a question from Ahmad Fahmi Mohamed Fadzil (PH-Lembah Pantai) on the current status of KVDT Phase 1 and Phase 2 project. He said the implementation of the KVDT Phase 2 project was set for seven years.
Why re-award the contract to the company who allegedly had poor performance executing KVDT Phase 1 project?
Responding to an additional question by Ahmad Fahmi, on why the government re-awarded the contract to the company when it allegedly had poor performance while executing KVDT Phase 1 project, Loke said this was because the government would face legal implications if it did not resume the contract.
“If we do not resume the contract with the company, the government will face legal implications in which the company can sue the government and claim about RM2.5 billion in compensation,” he said.
Status of KVDT Phase 1
With regard to the KVDT Phase 1 project, Loke said the progress status of the project as at 30 June 2019 had reached 80.33%.
Meanwhile, Loke agreed that the implementation of the project would affect the service of KTM Komuter and the Electric Train Services (ETS) trains in terms of the frequencies and travel time.
“However, the government through the Land Public Transport Agency (APAD) will constantly monitor the performance of public transport services in Malaysia to ensure that the responsible operator would follow the set standards,” he said.