LTAT’s JV in Klang Valley Double Tracking Phase 2 project continues — Transport Ministry

• In a written parliamentary reply dated Aug 3 to Seremban Member of Parliament Loke Siew Fook which was uploaded on the Parliament website, Transport Minister Datuk Seri Dr Wee Ka Siong noted the contract cost was maintained at RM4.475 billion with the project scope and implementation period unchanged.

KUALA LUMPUR (Aug 4): The Armed Forces Fund Board's (Lembaga Tabung Angkatan Tentera or LTAT) involvement as a joint venture (JV) with Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) in the Klang Valley Double Tracking (KVDT) Phase 2 project is still continuing, said the Ministry of Transport (MOT).

In a written parliamentary reply dated Aug 3 (Wednesday) to Seremban Member of Parliament Loke Siew Fook which was uploaded on the Parliament website, Transport Minister Datuk Seri Dr Wee Ka Siong noted the contract cost was maintained at RM4.475 billion with the project scope and implementation period unchanged.

This was based on a Cabinet decision dated May 18 this year where Syarikat Dhaya Maju LTAT Sdn Bhd had withdrawn its legal action against the Malaysian Government.

Following that, a letter of acceptance dated July 29 this year was issued to Dhaya Maju LTAT based on discussions with the Finance Ministry and MOT.

“[As such], any allegation that LTAT is oppressed by the MOT is unfounded. The appointment of an independent inspection consultant (ICC) needs to be expedited to ensure the smooth running of the project,” said Wee.

Loke, who wanted to know the latest development of the KVDT Phase 1 and KVDT Phase 2 track conservation projects, had asked the transport minister for the name of the appointed contractor and ICC, the completion date for both phases as well as the latest total cost for Phase 2.

Wee said DMIA is the appointed contractor for the KDVT Phase 1 and Phase 2 projects, and JSP Emenea JV Sdn Bhd has been appointed as the ICC for the KDVT Phase 1 project while the ICC for Phase 2 is yet to be finalised but is being expedited.

The project, which was supposed to be completed on Nov 1, 2019, was delayed and four extensions of time were given with the current completion date being Jan 30, 2023. The overall progress percentage of the KVDT Phase 1 project until July 24 this year is 92.43%.

“As a result, Keretapi Tanah Melayu Bhd (KTMB) service users are still unable to enjoy better public transport services and better station facilities comfortably,” added Wee.

On Oct 27, 2020, Dhaya Maju LTAT filed a suit against the government, Wee, Opus Consultants (M) Sdn Bhd and KTMB over the termination of the company’s contract in KVDT Phase 2 project.

Based on the statement of claims, Dhaya Maju LTAT alleged, among others, that to date, the official notice of termination had not been issued to the company, and it was not aware of the termination until it was announced by Wee in a media statement.

Apart from compensations, Dhaya Maju LTAT, a JV between DMIA and LTAT which was incorporated on June 5, 2017 under the Companies Act 2016, sought a declaration the contract termination was null and void.

The dispute arose after Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz issued a list of 101 projects valued at RM6.61 billion awarded via direct negotiation during the Pakatan Harapan administration and it included the KVDT Phase 2 project valued at RM4.475 billion awarded to Dhaya Maju LTAT.