Transport Ministry: KLIA2 construction never experienced cost overruns

  • Nation
  • Tuesday, 19 May 2015

KUALA LUMPUR: The construction of Kuala Lumpur International 2 (KLIA2) never experienced a cost overrun although it ultimately cost RM4bil to build instead of the initial RM1.7bil, the Dewan Rakyat was told.

"This project had never experienced a cost overrun. The reason was due to the additional scope for the new design concept for KLIA2, or the specific needs of the takeholders such as airlines and the Government," said the Transport Ministry in a written response to Ariff Sabri Abdul Aziz (DAP-Raub).

Ariff had asked the Ministry what action was taken against the contractor responsible for the delay of the project.

He also asked the Ministry to name the contractor, and the action taken against officers and consultants who contributed to the cost overrun.

"The contractor responsible for the delay will be subject to liquidated ascertained damages (LAD).

"In this case, the Malaysia Airports Holding Berhad (MAHB) is in the midst of consulting with the main contractor JV UEM-Binapura on the amount that they will have to pay," said the Ministry.

PAC had previously slammed MAHB for not being customer-centric by not prioritising the needs of the low-cost airline industry, which might have led to an increase in operating costs for budget airlines.

In its report, PAC found that the KLIA2 project did not follow its original concept as a replacement for the Low Cost Carrier Terminal (LCCT) and ended up being a "hybrid concept terminal" following unexpected cost increases and upgrades.

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