Klang Valley double tracking contractor perplexed by contract termination

Dhaya Maju-LTAT says it will continue to engage the government and stakeholders to ensure the KVDT2 proceeds smoothly.

PETALING JAYA: The contractor for the Klang Valley Double Tracking Phase 2 Project (KVDT2) is perplexed by the termination of the contract, saying there is no legal or factual justification for it.

Dhaya Maju-LTAT chief executive Mohamed Razeek Hussain responded to Transport Minister Wee Ka Siong’s statement on the project, saying it failed to accurately reflect and describe the background of the matter.

Last week, Wee said the ministry will reopen KVDT 2 for tender after it found that the project costs a lot less than what was previously cited for.

Wee and his predecessor, Loke Siew Fook, have engaged in a war of words over the costs of the project.

In a statement today, Razeek said Dhaya Maju-LTAT were the duly appointed contractors for the project and received the original letter of award (LoA) on April 4, 2018, for the project under the then Barisan Nasional-led administration.

“When the Pakatan Harapan government took over, the original KVDT2 award was terminated on Oct 19, 2018.

“Having accepted that there was no basis to terminate the initial letter of award, the Pakatan Harapan government on July 5, 2019 agreed to reappoint Dhaya Maju-LTAT to implement the KVDT2 project and the parties entered into a settlement agreement under which the government agreed to issue a new letter of award,” he said.

In return, Razeek said, Dhaya Maju-LTAT waived all its claims against the government for wrongful termination.

The company received a new LoA to continue with the KVDT2 project at a lower contract sum, which was derived after a series of negotiations with all stakeholders and technical experts.

“We are therefore dismayed and perplexed by the minister’s statement based on some report in respect of the costs of the project which we are unaware of,” he said.

Razeek said all works were being monitored by professional consultants and all claims were checked and verified before any approval for payment.

He said the KVDT2 was a key public transport project for the Klang Valley and that any delays caused by the reopening of the tender would bring “untold misery” to the public and commuters.

“Until and unless formally informed, as a responsible contractor, we intend to continue to perform our obligations, under the contract, to ensure that the project is delivered on time and without delay.

“We cannot understand why there is a sudden rush to terminate the contract,” he said, adding that the government needed to consider the impact of this on the economy during the Covid-19 pandemic.

Razeek said the company would continue to engage the government and stakeholders to ensure the project was not compromised.