KUALA LUMPUR: The government is open to renegotiating with the contractor of the Klang Valley Double Tracking Project 2 (KVDT 2) to avoid a civil suit.
Minister in the Prime Minister’s Department Datuk Takiyuddin Hassan said the government wants to achieve a “win-win” solution.
He said the decision to open renegotiations was made during last week’s Cabinet meeting.
“Not only in this case but for any civil case faced by the government, it is the government’s practice to always be open to negotiating an amicable out-of-court settlement which is a win-win solution for both sides.
“The Cabinet agreed that the companies and the Transport Ministry should try and reach an agreement,” Takiyuddin said in reply to a question from Loke Siew Fook (PH-Seremban)
He had asked about the Attorney-General’s Chambers advice to the government on its decision to cancel the project and its legal implications.
Takiyuddin did not give reasons for the cancellation of the project, but said the AGC had advised the government to have adequate facts to support the action.
Dhaya Maju LTAT had filed a lawsuit against the government, alleging breach of contract.
The company had also sought an injunction as well as a judiciary review of the cancellation order.
The proposed KVDT 2 spans 110km, involving two KTM railway tracks – one from Salak South to Seremban and the other from a point between Kuala Lumpur Sentral and Angkasapuri to Port Klang.
In 2017, the Barisan Nasional government awarded the project to Dhaya Maju- LTAT but the contract was cancelled after the change of government in 2018.
The Pakatan Harapan government then reappointed Dhaya Maju-LTAT to continue the project after a reduction in its scope and costs.
