The Land Transport Authority (LTA) will file its claims with the insolvency administrator in an attempt to recoup some of the losses made due to Alpine Bau's filing for insolvency
LTA to file claims against failed contractor Alpine Bau

THE Land Transport Authority (LTA) will file its claims with the insolvency administrator in an attempt to recoup some of the losses made due to Alpine Bau's filing for insolvency.

Speaking in Parliament yesterday, Transport Minister Lui Tuck Yew also confirmed that LTA has terminated Alpine Bau's contracts.

"There is no option for them to come back nor do we believe that they have the ability to do so," said Mr Lui.

"In the meantime, we hold quite a significant sum of money as a result of the performance bond, the retention sum, and for works that have been completed but (for which) we have not yet been able to make payment to Alpine. So we do have some money under LTA that rightfully would have belonged to Alpine if the project had been completed to our satisfaction."

The Austrian builder, which was awarded two contracts to work on the design and construction of Downtown MRT Line 2's King Albert Park, Sixth Avenue, and Tan Kah Kee stations, filed for insolvency last month after a failed restructuring plan.

Meanwhile, LTA will take the next few weeks to assess the full impact of the delay to the project timeline as well as additional costs to be incurred, said Mr Lui, adding that LTA would do everything possible to keep the delay to a minimum.

LTA has also called in specialists to ensure safety on the stalled section. While all works have been suspended, LTA has appointed subcontractors to ensure on-site safety and to carry out maintenance of the machines and recharge wells before new contractors are appointed.

He added that the authority has worked with the Ministry of Manpower to ensure that Alpine's workers were properly looked after.