KUALA LUMPUR, Oct 18 — The Work Ministry (KKR) has instructed the Malaysian Highway Authority (LLM) to immediately hold a meeting with the concessionaire and main contractor, as well as subcontractors affected by outstanding payments for the Damansara-Shah Alam Highway (DASH).
In a statement today, KKR said the move was to ensure all arrears are settled as soon as possible as directed by Prime Minister Datuk Seri Ismail Sabri Yaakob.
“KKR is aware of the complaints of several contractors regarding late payments for DASH works. We are also aware of the contractors affected due to the arrears of the newly opened Sungei Besi-Ulu Kelang Elevated Expressway (SUKE),” said the statement.
According to KKR, in order to avoid confusion, the concessionaire, and not the government, is responsible for all payments to the contractors.
For the two highways in question, the DASH and SUKE concessionaire is Projek Lintasan Kota Holdings Sdn Bhd (PROLINTAS), said the statement.
KKR said under the concession agreement signed, LLM has the regulatory authority to audit the budget for the highway and to intervene.
Earlier today, Ismail Sabri ordered that any debt related to the DASH Highway project which was opened recently, needs to be cleared.
The Prime Minister said this when commenting on the issue of alleged unpaid arrears to a number of subcontractors of the DASH project amounting to more than RM80 million which caused the subcontractors involved with the project to experience difficulties.
The 20.1 kilometre-long DASH Highway with 13 exits and interchanges was opened at 12.01 am last Friday.
The 13 intersections are Puncak Perdana, Alam Suria, Denai Alam, Kampung Melayu Subang, Pinggiran Subang, Subang Dua, Subang Airport, RRIM (Kwasa Damansara), Surian, Section 5 Kota Damansara, Sunway Damansara, Damansara Perdana and Penchala.
It connects three major highways namely the Guthrie Corridor Expressway (GCE), Damansara-Puchong Expressway (LDP) and Western Kuala Lumpur Traffic Dispersal Scheme (SPRINT).
Meanwhile, Projek Lintasan Kota Holdings Sdn Bhd (Prolintas) in a separate statement today said Turnpike Synergy Sdn Bhd as the main contractor appointed by Projek Lintasan Damansara-Shah Alam Sdn Bhd (PLDASH) to complete the construction of the highway project, have made payments to the Work Package Contractor (KPK).
Prolintas said that payments for all claims are made after obtaining the certificate and confirmation of the lead consultant engineer and material surveyor consultant through the interim payment certificate with the agreement of the consultant and KPK.
“Turnpike has also taken various initiatives to help KPK such as payment within 30 days compared to the 60-day contract terms and direct payment to subcontractors subject to the concurrence of KPK.
“(In addition) twice a month payment is made to help the cash flow of KPK and subcontractors to carry out the construction of DASH Highway successfully,” he said.
According to Prolintas, since the construction of DASH is fully completed, the completion status of the DASH Highway is in the defect liability period and the final account will be issued after all KPK’s final payment claims have been reviewed and certified by Turnpike, consultants and KPK.
“Any claims, alleged arrears or disputes will be studied through the stipulated processes in the contract between all parties including the arbitration process between Turnpike and KPK,” he said.
According to the statement, the subcontractor or any party claiming that there is a payment that has not been cleared by KPK should refer to the terms of the contract between KPK and the subcontractor in order to find a solution.
