KUALA LUMPUR: The Transport Ministry said its decision to reopen the tender for the Klang Valley Double Track Project (KVDT 2) was taken after obtaining input from various parties including experts, professionals and companies related to the rail construction project.
Its minister Datuk Seri Dr Ir Wee Ka Siong said the decision also did not solely depend on the Professional Project Review (PPR) provided by the consulting company Opus Consultants (Opus).
"I was puzzled when Anthony Loke (former Transport Minister) mentioned that Opus Consultants was not appointed by the Transport Ministry to carry out the PPR. In my media statement yesterday, where did I mention that the ministry appointed Opus?
"I only said Opus Consultants was assigned to do the PPR study. I also know that Opus did it 'pro bono' or voluntarily. If the Opus report is not formal, why was a presentation made to the former Transport Minister and the ministry's secretary-general?
"Isn't that a waste of time? Do not look for excuses when this report was submitted to the ministry. I cannot deliberately assume this PPR does not exist because the findings of the study is that the cost of KVDT2 offered to Dhaya Maju - LTAT Sdn Bhd (DM-LTAT) is too high," he said in a statement posted on his official Facebook account today.
Wee said Loke should have welcomed the Perikatan Nasional's (PN) decision to make an open tender for the project.
He added that Loke's argument that Pakatan Harapan (PH) managed to reduce the cost of the project was seen as a "game of magic".
"Reducing the scope of work and saving costs are two different things. If you reduce the scope of work, the project cost can be reduced, but it is not savings like comparing 'apples to apples'.
"What is found in the KVDT2 project proposal with a 15 percent cost reduction, is more towards reducing the scope of work whether certain work details are removed from the original plan or it is done by another party.
"For example, 'fit for purpose' or scope reduction. There are also many project details that DM-LTAT requested so that it is built by the Railway Assets Corporation (RAC). The question is who owns RAC? RAC belongs to the government. Thus, the cost incurred by RAC is not savings offered by the contractor."
Wee also questioned Loke's statement claiming to have informed the Cabinet on Sept 19, 2018, that they were able to reduce the cost of the KVDT2 project to between RM3 billion and RM3.5 billion if re-tendered.
"The question is why was it not done? Worse still, after 10 months from the date he informed the Cabinet, the KVDT2 project was re-offered through direct negotiations on July 2, 2019 at a price of RM4.475 billion.
"This is strange and odd. Loke's revelation proves that he knew in advance that the cost was only RM3 billion to RM3.5 billion, but still agreed to grant the project through direct negotiations at a much higher price of RM4.475 billion," he said.