Klang Valley rail dispute over, contractor to carry on

 

A suit over the RM4.5 billion Klang Valley double-tracking project, in dispute since 2020, has been settled, the High Court was told today.

KUALA LUMPUR: A dispute over the Klang Valley Double Tracking Phase 2 (KVDT2) has been settled, with the government deciding to allow the contractor, Dhaya Maju LTAT Sdn Bhd, to continue with the RM4.5 billion project.

The High Court here was told this today by senior federal counsel Asliza Ali, who said the decision was decided at the Cabinet meeting on May 18.

Asliza was representing the government and transport minister Wee Ka Siong in a suit brought by the company over the termination of its contract two years ago.

She made the announcement during online case management before Justice Lim Chong Fong today.

Contacted later, she said the project would be continued by Dhaya Maju LTAT with the original contract cost of RM4.475 billion and implementation terms as stated in a letter of acceptance in 2019.

She said both parties in the suit had reached an agreement to settle the suit and Dhaya Maju LTAT will withdraw its suit after the contract is signed with the government.

“The court set June 30 for the parties to announce further developments regarding the settlement of the suit,” she said.

The suit was filed in 2020 by Dhaya Maju LTAT against the government, Wee, Opus Consultants and Keretapi Tanah Melayu Bhd over the termination of the company’s contract.

The company said notice of termination had not been issued to the company and it was not aware of the termination until announced by Wee in a media statement.

It sought compensation and a declaration that the contract termination was null and void.

Dhaya Maju LTAT is a joint venture between Dhaya Maju Infrastructure (Asia) Sdn Bhd and the armed forces pension fund Lembaga Tabung Angkatan Tentera (LTAT).

The dispute arose after finance minister Tengku Zafrul Aziz issued a list of 101 projects amounting to a total of RM6.61 billion which had been awarded via direct negotiation during the Pakatan Harapan administration. The list included the KVDT2 project awarded to Dhaya Maju LTAT. - FMT