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PETALING JAYA: Cabinet agreed to convert the Klang Valley Double Tracking Phase 2 (KVDT2) rehabilitation project into an open tender, canceling the contract negotiated directly after recent disclosures in Parliament, says Transport Minister Datuk Seri, Dr. . Wee Ka Siong (Photo).
In a statement yesterday, Dr. Wee said that the call to review the project awarded to Dhaya Maju LTAT Sdn Bhd was aimed at optimizing the use of public funds.
“The government has closely examined the feasibility of such projects to get the best value.
“For this reason, I wish to announce that the KVDT2 project will be reopened for bidding, which the Cabinet has agreed to,” said Dr. Wee.
KVDT2 is one of 101 projects costing a total of RM6.61bil recently revealed in Parliament as delivered under the previous Pakatan Harapan government through direct negotiation, despite the fact that they claimed there would be no direct negotiation under their government. .
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 the Barisan Nasional time, albeit these “savings” of RM789. 75 thousand came with a reduced scope of work.
However, in October 2018, the Ministry of Transport appointed Opus Consultants (a subsidiary of Khazanah Nasional Bhd) to produce a professional review report, which concluded that the project actually cost RM3,398bil based on the consortium’s original scope of work.
“This information was never available to the Cabinet at that time,” Dr. Wee said.
“After taking into consideration the results of extensive studies and investigations, the ministry has determined that the current project is overrated.
“Consequently, Perikatan Nasional’s Cabinet has agreed that continuing with the project based on direct negotiation is unsustainable.
“Initially, an independent verification consultant will be appointed before a new contractor is appointed through open tender to shorten the construction period of the project from seven to five years.”
The rehabilitation of the 110 km twin tracks managed by KTM Bhd in the Klang Valley that run from Kuala Lumpur to Klang, Salak South to Seremban and Simpang Port Klang to Port Klang, is crucial given the high volume of freight trains and passengers using the tracks. .
“This is important in view of the urgency of completing the project to serve some 80,000 daily passengers from Komuter,” said Dr. Wee.
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