‘Overpriced’ Klang Valley rail job to be re-tendered

Phase 2 of the Klang Valley Double Tracking is to be re-opened for bidding, the government has announced.

PETALING JAYA: The transport ministry will reopen the Klang Valley Double Tracking (Phase 2) or KVDT 2 for tender after it found that the project costs a lot less than what was previously cited for.

Transport Minister Wee Ka Siong said the Pakatan Harapan government had previously agreed for Dhaya Maju – LTAT Sdn Bhd to continue the project at a reduced cost.

The contractor had agreed to slash the cost by 15% to RM4.475 billion from RM5.265 billion.

Wee said that a ministry-assigned consultant Opus, a subsidiary of Khazanah Nasional Bhd, had said in October 2018 that the project’s actual cost was RM3.398 billion.

But this information was never made available to the Cabinet at the time. Wee said.

Transport minister Wee Ka Siong.

“After taking into consideration the results of extensive study and investigation, the ministry has determined that the current project cost is overpriced.

“Pursuant to this, the Perikatan Nasional Cabinet has agreed that continuing with the implementation of the project based on direct negotiation is untenable,” he said in a statement.

Wee went on to take a swipe at the previous administration, saying it was now prudent to reopen the bidding process via an open tender system following the proper procedures, “instead of direct negotiation as done previously”.

An independent checking consultant is to be appointed initially before a new contractor is appointed via open tender to carry out the required scope of work.

This was to shorten the construction period of the project from seven to five years.

The project spans 110km, involving two KTM railway tracks – one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang.