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KUALA LUMPUR: The government is open to renegotiating with the Klang Valley 2 Dual Tracking Project (KVDT 2) contractor to avoid a civil lawsuit.
The Prime Minister’s Department Minister Datuk Takiyuddin Hassan said the government wants to achieve a win-win solution.
He said the decision to open renegotiations was made during last week’s cabinet meeting.
“Not only in this case, but in any civil case that the government faces, it is the government’s practice to always be open to negotiating an out-of-court friendly settlement that is a win-win solution for both parties.
“The cabinet agreed that the companies and the Ministry of Transport should try to reach an agreement,” said Takiyuddin in response to a question from Loke Siew Fook (PH-Seremban).
He had asked about the Attorney General’s advice to the government on its decision to cancel the project and its legal implications.
Takiyuddin did not give the reasons for the project’s cancellation, but said that the AGC had advised the government to have adequate data to support the action.
Dhaya Maju LTAT had filed a lawsuit against the government, alleging breach of contract.
The company had also requested a court order and a judicial review of the cancellation order.
The proposed KVDT 2 spans 110 km and includes two KTM railways: one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang.
In 2017, the Barisan Nasional government awarded the project to Dhaya Maju-LTAT but the contract was canceled after the change of government in 2018.
The Pakatan Harapan government then reappointed Dhaya Maju-LTAT to continue the project after a reduction in its scope and costs.
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