PETALING JAYA: The second phase of the Klang Valley Double Track (KVDT) rail upgrade is expected to kick off this month, beginning with the appointment of a new consultant for the project, sources say.

Following the appointment of the consultant, the government will call for bids through an open tender and the newly appointed consultant will assist the government to evaluate the bids, the sources added.

Sources also said that estimates show the project could be done for between RM4bil and RM4.5bil, which is a substantial reduction from the original cost.

The second phase of the KVDT was originally awarded to DMIA Engineering in partnership with Lembaga Tabung Angkatan Tentera at a contract cost of RM5.9bil via direct negotiations just days before the 14th General Election.

Following the general election, the project was cancelled after a review because of the high cost and manner it was awarded.

“The MoT (Transport Ministry) is keen to see it rolled out at competitive price, given that the KVDT phase one is nearing completion.

“The first step is to appoint a consultant and the tender for this could take place sometime this month, or by early next month.

“Next is to call for bids from (construction) players,” said a source.

It is understood that some scope from the original plan may be taken out.

Assuming a cost of RM4.5bil, that works out to about RM40.9mil per km as opposed to RM53mil per km based on the previous cost of RM5.9bil.

It also remains to be seen whether the project would be broken up into different packages as opposed to being awarded to one party as previously done.

“The idea to break up the project into different segments has been floated. However, the argument against this is that having a main contractor has its merits considering this is a brownfield project,” said a consultant familiar with the rail industry.

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

It was to involve infrastructure and system upgrades to ensure safe, reliable and comfortable train services.

According to Keretapi Tanah Melayu Bhd (KTMB), the second phase of the KVDT is much needed considering the current track network remains unsustainable.

When the tenders open for the second phase of the KVDT, it is expected that many civil contractors will jump at the opportunity to participate, given that there are not many new and large infrastructure projects around.

Names that are being bandied about in the market as potential bidders are YTL Corp Bhd , Gamuda Bhd , WCT Holdings Bhd and Sunway Construction Group Bhd , which had reportedly said it was keen to put in its bid for the Phase 2.

Observers do not discount other construction players putting in bids too.

DMIA Engineering, which incidentally is also the contractor for phase one of KVDT, would likely bid again, sources said.

The first phase covers upgrading works between the Rawang-Salak Selatan and Sentul-Simpang Batu rail lines.