'No basis' to reopen KVDT 2 project tender, claims contractor

The Perikatan Nasional government has no basis to terminate the existing contract for the Klang Valley Double Tracking Phase 2 (KVDT2) project, its contractor Dhaya Maju LTAT Sdn Bhd said.

Its chief executive officer Mohamed Razeek Hussain said the company has the capability to carry out the project, which was why it was given the contract twice, first by the BN government and later the Pakatan Harapan administration in 2018 and 2019, respectively.

"The company currently has RM350 million in variety and credible railway assets, consisting of machinery and specialised track-works equipment to achieve timely project completion. 

"Dhaya Maju LTAT had received the letter of award (LOA) on Aug 19, 2019, and was formally given site possession on Sept 3, 2019.

"Our possession of railway machines, sufficient supply of materials and home-grown well-disciplined and skilled manpower, have given strong evidence to both governments, BN as well as Harapan, into awarding the contract to us," he said in a statement today.

This came after Transport Minister Wee Ka Siong said last week that the government will reopen the KVDT 2 project tender.

Wee had said that this was because an investigation had found that the RM4.475 billion project was still overpriced despite cost-cutting by the Harapan administration.

The project came into the spotlight when Finance Minister Tengku Zafrul Abdul Aziz revealed 101 contracts that were awarded through a direct negotiation process during the time Harapan was in power, which KVDT 2 is the largest in terms of value.

'All claims are verified before approved for payment'

Razeek claimed that Wee's statement failed to accurately reflect and describe the background to the contract award.

According to him, Dhaya Maju LTAT had received the original LOA project during the tenure of the BN government on April 4, 2018, and commenced work until it was terminated by the Harapan government on Oct 19 the same year.

For the record, the BN government had awarded the project to Dhaya Maju LTAT just two days before then prime minister Najib Abdul Razak announced that he had received permission from the Yang di-Pertuan Agong to dissolve Parliament. BN was then defeated by Harapan in the 14th general election.

Razeek claimed that the Harapan administration, however, had on July 5, 2019 agreed to reappoint the company after accepting that there was no basis to terminate the initial LOA. 

"Following this, we were appointed to continue with the KVDT 2 project under the LOA dated Aug 19, 2019, at a lower contract sum.

"The reduced contract sum was derived after a series of value management and value engineering labs that were undertaken with the participation of all stakeholders and led by experts within the Transport Ministery and KTMB.

"We are therefore dismayed and perplexed by the minister’s statement based on some reports in respect of the costs of the project which we are unaware of," he added.

Razeek said that the KVDT 2 project is monitored by professional consultants, and all expense claims made are verified before being approved for payment.

"Strict financial monitoring is in place under the watch of the superintending officer on the KVDT 2 project," he said.

According to him, 24 percent of the project has been completed and it had since provided job opportunities to over 7,000 employees under the services, supplies and maintenance sectors.

"The minister's unjustified call for the reopening of tender for the KVDT 2 project will almost inevitably delay the project, bringing untold misery to the public and commuters.

"As a responsible contractor, we intend to continue to perform our obligations to ensure that the project is delivered on time and without delay. We will also continue to engage with the government and relevant stakeholders to ensure that the KVDT 2 project and the interest of the public are not compromised or jeopardised.

"We cannot understand why there is a sudden rush to terminate the contract. The government should consider the direct impact that will have on the economy during this Covid-19 pandemic, as well as look into lead time statistics and cost of termination," Razeek said.

"The sites will be left idle, resulting in further danger to the public," he added.   - Mkini