KUALA LUMPUR, June 13 — The High Court was today told that the government had decided to allow Dhaya Maju LTAT Sdn Bhd to continue with the Klang Valley Double Tracking Phase 2 (KVDT2) project.

Senior Federal Counsel Asliza Ali said the matter was decided during the Cabinet meeting on May 18.

Asliza who was representing the government and Transport Minister Datuk Seri Dr Wee Ka Siong in a suit, made the announcement during online case management before Justice Datuk Lim Chong Fong today.

"The KVDT2 project would be continued by Dhaya Maju LTAT with the contract cost of RM4.475 billion, as well as the implementation terms, staying as agreed in the Letter of Acceptance dated Aug 19, 2019,” she said when contacted today.

In this regard, Asliza said both parties in the suit had also reached an agreement to settle the suit.

"The plaintiff (Dhaya Maju) will withdraw its suit after the contract is signed by both parties (government and Dhaya Maju).

"The court set June 30 for the parties to announce on the development of the settlement of the suit,” she said.

On Oct 27, 2020, Dhaya Maju LTAT filed a suit against the government, Wee, Opus Consultants (M) Sdn Bhd and Keretapi Tanah Melayu Berhad (KTMB) as respondents over the termination of the company’s contract in KVDT2 project.

Based on the statement of claims, Dhaya Maju LTAT among others alleged that to date, the official notice of termination had not been issued to the company and it was not aware of the termination until it was announced by Wee in a media statement.

Apart from compensations, Dhaya Maju LTAT, a joint-venture between Dhaya Maju Infrastructure (Asia) Sdn Bhd and Lembaga Tabung Angkatan Tentera (LTAT) which was incorporated on June 5, 2017 under the Companies Act 2016, sought the declaration of the contract termination was null and void.

The dispute arose after Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz issued a list of 101 projects valued at RM6.61 billion awarded via direct negotiation during the Pakatan Harapan administration and it also involved the KVDT2 project valued at RM4.475 billion awarded to Dhaya Maju LTAT. — Bernama