No more delays for KLIA2, project will stay within RM4bil

SEPANG: There would be no further delays to the completion of KLIA2 nor would there be anymore cost increases from the estimated budget of RM4bil, said Deputy Transport Minister Datuk Abdul Aziz Kaprawi, who also heads the KLIA2 Task Force.

“Definitely no, no more delays - I am very confident. The progress is very good and all would be in place by April 30, 2014 - 100% confirmed. The cost is capped at plus/minus RM4bil, pending the finalisation of our accounts,” he said at a press conference yesterday after visiting the KLIA2 site and holding its third meeting.

The deputy minister said that specific work components that were facing delays ought to be reviewed by Malaysia Airports Holdings Bhd’s (MAHB) KLIA2 Project Team and be reassigned to other third-party contractors if the initial contractors were not able to meet their respective deadlines.

The Transport Ministry’s press statement said that works that had been assigned to new contractors were the service road, Airport Fire and Rescue building and its baggage handling system (BHS) to ensure the timeline was met.

“We have replaced the (previous) BHS contractor with a new one - which is an international German company. The previous company (Malaysian AE Models Holdings Bhd’s subsidiary Matromatic Handling Systems (M) Sdn Bhd) had faced financial problems with the banks,” Abdul Aziz said.

MAHB’s chief operating officer Datuk Abd Hamid Mohd Ali said the new contractor was appointed last week and that the BHS, which had remaining works of 30%, would see a price increase to RM60mil from the RM40mil allocated when the contract was awarded three years ago. On the taxiway, Abdul Aziz said there had been some minor delays but that the contractors were ‘catching up’ and the job would be completed by November 2013.

In a related matter, Abdul Aziz said the liquidated and ascertained damages (LAD) fine on the main contractor UEM-Bina Puri JV “would still be imposed”. The LAD of RM199,445.40 per day had earlier been invoked beginning June 16 by MAHB due to the JV’s inability to complete the works by the approved deadline of June 15.