PHASE two of the Klang Valley Double Track (KVDT) rail upgrade project is expected to start this month, The Star Online quoted sources as saying today.

The project, which sources said could cost between RM4 billion to RM4.5 billion – far less than the initial contract cost of RM5.9 billion – will reportedly kick off with the appointment of a new consultant.

A source told the news site that the Transport Ministry was keen to see the project’s second phase conducted at a “competitive price”, given that phase one between Rawang-Salak Selatan and Sentul-Simpang Batu was nearly completed.

“The first step is to appoint a consultant and the tender for this could take place some time this month, or by early next month. Next is to call for bids from (construction) players,” the source was quoted as saying.

The second phase of the KVDT project involves 110km of railway tracks from the Kuala Lumpur station to Klang, Salak South to Seremban, and Simpang Port Klang to Port Klang.

The project will involve both infrastructure and system upgrades to ensure safe, reliable and comfortable train services.

The project was previously awarded to DMIA Engineering in partnership with the Armed Forces Fund Board (LTAT) via direct negotiations just days before the 14th general election last year when Barisan Nasional was still in power.

The contract for the project was then shelved after Pakatan Harapan took over Putrajaya last year, due to the high cost and manner over which the contract was awarded.

The report said many civil contractors were expected to take part in the tender for phase two when it was opened, as there were not many new and large infrastructure projects around.

It said big names in construction industry, like YTL Corp Bhd, Gamuda Bhd, WCT Holdings Bhd and Sunway Construction Group Bhd, were reportedly interested in the project.

According to its sources, the contractor of KVDT phase one, DMIA Engineering, was likely to take part in the bid for phase two as well.

Sources also said it was still unknown if phase two would be broken up into different packages, instead of being awarded to a single party, like before.

An unidentified consultant familiar with the rail industry said the idea had been floated.

“However, the argument against this is that having a main contractor has its merits, considering this is a brownfield project.” – January 7, 2019.