The second phase of the construction of the Klang Valley Double Tracking Project (KVDT) which was awarded to Dhaya Maju Ltat Sdn Bhd and cancelled, will be awarded again through open tender.
Transport Minister Anthony Loke said today's cabinet decision was made as the RM5.2 billion project contract was given through direct negotiation and the cost involved was considered too high.
“Through this open tender process, the government hopes to get better value with lower cost," he said during a press conference in Putrajaya today.
He said the cabinet agreed that the project would continue as the railway lines in the Klang Valley were obsolete, and there was also a need to ensure that the transportation system in the area would run efficiently.
Asked whether compensation would be given to Dhaya Maju, Loke replied: "We will discuss it first and the value has not been ascertained, it is up to the company to make a claim and we will discuss it”.
Loke said no fee has been paid to Dhaya Maju since the contract was awarded.
The second phase of KVDT involves a distance of 110 kilometers from Kuala Lumpur to Klang, Salak Selatan to Seremban and Simpang Port Klang to Port Klang.
He said the open tender process is expected to be made before the end of the year, and the award is expected to be made next year.