MAHB reviews claims

SEPANG: Malaysia Airports Holdings Bhd (MAHB) is reviewing its claims and counter-claims following the imposed liquidated and ascertained damages (LAD) on UEM-Bina Puri joint venture (JV) who were the contractors for the terminal building of KLIA2.

“We are doing the review now and it should be completed by the end of this month. This will be presented to the board before May 31, 2015,” MAHB managing director Datuk Badlisham Ghazali said at a press conference after the company’s AGM.

“Contractually, whatever that is due to us from the LAD will be imposed and also subjected to the review that will be done,” Badlisham said.

The matter arose following delays in the completion of the terminal building of KLIA2 by the UEM-Bina Puri JV by the June 15, 2013 deadline. MAHB has been reported to have said previously that the total LAD incurred by the UEM-Bina Puri JV was RM60mil.

However, the contractors have appealed against the LAD on the grounds that there were many last-minute requests and additional changes by the clients that allowed it for an extension of time to complete the works.

This led to counter-claims against MAHB, which in turn alleged that the requirements by their main client, which is Air Asia Bhd, led to modifications of the airport.

But to be fair, the new KLIA2 was much bigger and has better facilities compared to the original plan. When the KLIA2 was first mooted, the original cost was estimated at RM2bil and planned to cater for less than 25 million passengers. It was finally completed at some RM4.6bil to cater for 45 million passengers.

The total gross floor area in the original plan was 150,000 sq m but increased to 257,000 sq m when it was completed.

This involved an increase in costs of earth works and allowed the terminal to cater for more number of aircraft stands. The runaway was also extended compared to the original plan to cater for larger planes such as the Airbus A380.

On another matter, Badlisham said MAHB hoped to secure a contract to provide facilities management services (FMS) to an airport in Jeddah, Saudi Arabia.

MAHB, along with other international airport operators, has been pre-qualified for this contract and hopes to eventually secure them.

He also said the company hoped to be able to secure further contracts of such nature of FMS and in training services with other airports.