‘KVDT PHASE TWO DEAL BACK ON TRACK’
Contract is said to be 35pc cheaper than RM5.9b secured from former government
PHASE Two of the Klang Valley Double Track (KVDT) rail upgrade will be back on track at an estimated RM3.8 billion. This would be 35 per cent cheaper than the original contract awarded to Dhaya Maju LTAT Sdn Bhd, said sources, adding that a new tender would be called for the job.
Dhaya Maju was awarded a RM5.9 billion contract via direct negotiations on April 4 last year, days before Parliament was dissolved.
The Phase Two rehabilitation project was scheduled to be completed in seven years.
Dhaya Maju is a joint venture between Lembaga Tabung Angkatan Tentera and DMIA (Dhaya Maju Infrastructure Asia) Sdn Bhd, whose controlling shareholder is Datuk Seri Subramaniam Pillai.
DMIA was previously a partner to Malaysian Resources Corp Bhd for the beautification and upgrading works of Little India in Brickfields, here, as well as other development projects in the area.
The company holds a RM1.3 billion contract for Phase One of the KVDT that covers upgrading of the system (communications, signalling, electrification) between Rawang and Seremban, and from Sentul to Port Klang involving about 150km.
Talk has it that after Pakatan Harapan won the 14th General Elections (GE14), DMIA had come forward to offer a 15 per cent discount for the Phase Two job, but it was rejected by the new government.
DMIA was not reachable for comment at press time.
Phase Two involves 110km of railway tracks spanning from the Kuala Lumpur station to Klang, Salak South to Seremban and Simpang Port Klang to Port Klang. The project involves infrastructure and system upgrades to ensure safe, reliable and comfortable train services.
Keretapi Tanah Melayu Bhd had said the second phase was necessary because the current track was unsustainable.
The KVDT was built in the 1990s by Indian Railway Construction and is running on old technology, which makes upgrading of the railway line crucial.
The contract awarded to Dhaya Maju raised some questions given how it was issued just days before GE14.
Apart from the timing of the award, the project’s cost was too high at RM5.9 billion, Transport Minister Anthony Loke reportedly said last year.
At 110km, the cost works out to RM53 million per km and it is only for track work and signalling. The contract does not involve constructing new buildings or stations.
This makes the Phase Two KDVT more expensive than the Gemas-Johor Baru electrified double-tracking project, which involves new track, system, stations, buildings and bridges.
The government terminated the contract with Dhaya Maju in September last year.
“Finance Minister Lim Guan Eng is asking for a new open tender for the project at a reduced cost. Since Phase Two is all about rehabilitation, it shouldn’t cost more than RM4 billion,” said one source.
The source told NST Business that the government was expected to appoint an engineering consultant earliest by May this year while tender is expected in September following advice from the consultant.